Bumi Armada Inks $3B FPSO Contract with Eni for Angola's East Hub Field

Malaysia-based international offshore oilfield services provider, Bumi Armada Berhad (Bumi Armada), announced Wednesday the signing of a contract between Eni Angola S.p.A. (Eni Angola) and the consortium of Bumi Armada Offshore Holdings Limited (BAOHL) and Angoil Bumi JV Lda (ABJL), for the chartering, operations and maintenance of a Floating Production, Storage and Offloading vessel (FPSO) for deployment at the Block 15/06, East Hub field located in deep water offshore Angola (The Contract).

The effective date of the Contract on is March 28 corresponding to the commencement of the work. The Contract is for a firm charter of 12 years with options of 8 yearly extensions. The estimated aggregate value of the Contract for the firm charter period is approximately $3.0 billion (equivalent to approximately MYR 9.6 billion), with a further aggregate contract value of $0.9 billion (equivalent to approximately MYR 3.0 billion) if Eni Angola exercises all the extension options.

The FPSO is expected to commence operations in the Block 15/06 field in the fourth quarter of 2016.

Commenting on the signing of the Contract, Hassan Basma, executive director and CEO of Bumi Armada said, "The Contract for the Block 15/06 field marks Bumi Armada’s largest FPSO contract to date, in both contract value as well as the VLCC vessel which we will be using for the conversion, and clearly marks our entrance into the top tier of global FPSO players. Work on the FPSO for the 15/06 field has already commenced in April with the award of the LOI. We are confident of delivering the FPSO on time and on budget in 4Q 2016."

Bumi Armada will be using a VLCC class tanker for this FPSO conversion. The FPSO will utilize an external turret with 18 risers and umbilicals connected to the turret. The FPSO will also have a storage capacity of 1,800,000 barrels while having a crude oil production rate of 80,000 barrels per day, 120,000 barrels of water per day water injection and 120,000 million standard cubic feet gas handling capacities. The 4th Generation FPSO will have a topside weight of 15,000 tons and will be moored at a water depth of 1,476 feet (450 meters).

The FPSO for the 15/06 Field will take Bumi Armada’s total FPSO fleet to 9 vessels (including an LOI for the Madura BD field) and increases the order backlog to $10.4 billion or MYR 33.3 billion (comprising $6.78 billion or MYR 21.7 billion of firm contracts and $3.62 billion or MYR 11.6 billion of optional extensions).