Bumi Armada secures third FPSO project in India

escveritas
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Bumi Armada secures third FPSO project in India

Unread post by escveritas » Sun Jul 07, 2019 3:51 am

Malaysia-based international offshore energy facilities and services provider Bumi Armada Berhad announced that its joint-venture (“JV”) company Shapoorji Pallonji Bumi Armada Godavari Private Limited (“SPBAG”) has received a Notification of Award (“NOA”) from India's state-owned oil company Oil and Natural Gas Corporation Limited ("ONGC") for the charter hire and operations of a Floating Production, Storage and Offloading Vessel ("FPSO") (collectively referred to as “the Contract”).

SPBAG is a 30:70 joint venture between Bumi Armada and Shapoorji Pallonji Oil & Gas Private Limited of India (“SPOGPL”).

The FPSO will operate in the ONGC NELP Block DWN 98/2 Development Cluster-II field, located off the west coast of Kakinada, India. The Contract is for a fixed period of nine (9) years, valued at approximately USD2.1 billion (approximately RM8.8 billion). ONGC has the option to extend the Contract for up to seven (7) years, on an annual basis and if fully exercised, the extensions would be worth approximately USD655 million (approximately RM2.7 billion).

Commenting on the NOA, Mr. Leon Harland, Executive Director and Chief Executive Officer, said, “This is a very positive result for Bumi Armada. We are extremely proud that our JV with SPOGPL has been awarded our third FPSO project with ONGC.

The JV with SPOGPL has been a very successful partnership, this being our third FPSO project together in India and fourth in total. I would like to personally thank everyone involved in securing this project. This is a positive result for the Group and the project will add value to Bumi Armada going forward.”

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