[India] Armada Sterling V

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escveritas
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[India] Armada Sterling V

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BUMI ARMADA SECURES THIRD FPSO PROJECT IN INDIA

Kuala Lumpur, 6 May 2019 - Malaysia-based international offshore energy facilities and services provider Bumi Armada Berhad (“Bumi Armada” or “the Group”) today 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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Re: Armada Sterling V

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Malaysian FPSO contractor Bumi Armada has declared a 'force majeure' event related to the FPSO contract it has with India's ONGC, citing the effects of the coronavirus pandemic on the FPSO construction schedule.


Future FPSO Armada Sterling V seen here coming out of drydock at Sembcorp Marine yard in Singapore (Shapoorji Pallonji)

Bumi Armada, in a joint venture with Shapoorji Pallonji, last year secured a 9-year, $2.1 billion, FPSO charter and operations contract with ONGC, on the Indian oil company's NELP Block DWN 98/2 Development Cluster-II field, located off the west coast of Kakinada, India.

The 30/70 Bumi-Shapoorji joint venture - then awarded a contract to convert the VLCC Ariake into FPSO to Singapore's Sembcorp. The vessel is designed to produce up to 90,000 barrels of oil per day (BOPD) and have a 1.3-million-barrel storage facility and was scheduled for delivery in the second half of 2021.

However, in its quarterly report on Thursday, Bumi Armada said that the FPSO construction works have been delayed by the pandemic.

"The construction of the FPSO has commenced but is delayed due to regulatory constraints imposed by the government of various countries following the COVID-19 pandemic," the company said, without providing the expected delivery date.

"This has affected the work schedule of various sub-contractors operating in countries that manufacture major components for the FPSO. In addition, this has indirectly affected the timing to secure additional funding for the 98/2 Project," Bumi Armada said.

As a result of these delays, Bumi Armada said Thursday that a notice had been issued to ONGC advising of a “Force Majeure Event” "due to circumstances beyond the control of the associates and subcontractors of the 98/2 Project."

"The associates remain committed to fulfilling their obligations under the charter contract and are currently in discussion with the charterer regarding the construction timeline, as well as finalizing various components of the funding structure," Bumi Armada said.

According to the World Energy Reports FPSO report released last month, ONGC said in July 2020 that "development of the Cluster-2 region was facing “force majeure challenges” from several vendors due to the Covid-19 outbreak.

Sembcorp Marine said last week that following the relaxation of COVID-19 measures in Singapore since June 2020, the company's Singapore yards began to resume production activities in early July 2020.

"Our operating yard workforce (including sub-contractors) have now increased to almost full workforce levels," the Singaporean shipbuilder said.
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Re: Armada Sterling V

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Wasco today completed and loaded-out the ABB E-House Module for the ONGC KG-DWN-98/2 Cluster II FPSO PROJECT (India). This 1450 ton E-house was fabricated from Wasco’s yard on Batam Island, Indonesia and recorded 800,000 LTI free man-hours with zero punch list carry-overs.

Wasco Engineering & Fabrication Divisions Senior Vice President Pradeep Thiagarajan said: “We are very proud to have reached this milestone in what is another important E-House project for Wasco. Throughout the duration of this project we’ve seen close cooperation of highly skilled teams working to deliver this E-House according to plan. It has been particularly pleasing to see Wasco’s Covid-19 “Business Continuity Plan” being at the forefront with processes and tools to minimize any disruptions caused by the Covid-19 global pandemic, whilst achieving 800,000 LTI free man-hours.”.

The successful loadout and delivery of this FPSO E-House is yet another example of Wasco’s variety of “prefabricated modular building solutions” for both onshore and offshore markets.
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Re: Armada Sterling V

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VME process was awarded a contract to fabricate and supply five topsides modules including Seawater Treatment Module, Produced Water and Utility Module, Gas Dehydration & Hydrocarbon Dewpoint Module, Chemical Injection Module and Metering Laydown Module for FPSO Armada Sterling V for KG DWN-98/2 field with total weight measuring approximately 5,500 Tonnes.

Image

Awarded in Sep 2019, the project has faced numerous challenges posed by the emergence and escalation of COVID-19 worldwide; including supply chain disruptions, logistical challenges, closure of facilities, manpower shortage, travel restrictions, financial delays and unknown risks.

On 17 Jul 2021, module M90, the metering laydown module became the first module to be installed on FPSO.

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Future NOV APL STP Buoy 8000 has largely completed fabrication in the yard, awaiting for field installation
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Re: [India] Armada Sterling V

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VMEAP Awarded EPC Contract for Supply of Topside Modules for ONGC KG DWN 98/2 FPSO Project

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7 Sep 2019

VMEAP has been awarded a contract from SPOG for 5 Modules:
  • M40 Produced Water Treatment Module
  • M51 Seawater treatment Modules
  • M53 Chemical Injection Module
  • M54 Hydrocarbon Dewpoint and Gas Dehydration Modules
  • M90 Metering Laydown Module
Bumi Armada/SPOG is providing an FPSO to ONGC which plans to develop the New Exploration Licensing Policy (NELP) for Block KG-DWN-98/2, in deep waters off the East Coast of India.

The KG-DWN-98/2 block is located within 25-40 km of the nearest land-fall, and is adjacent to RIL’s KG-D6 field and GSPC’s Deendayal field. The water depth in this block varies between 300 and 3,200 metres.

According to client specifications, the project is currently under construction at VME’s Batam, Indonesia fabrication facility and will meet ABS class requirements. The completed modules will weigh in at 5100 tons. The project has completed 1,365,349 man-hours to-date without a LTI. All Modules will be delivered by Q4, 2021.
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Re: [India] Armada Sterling V

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Completed and Delivered Two Modules to the 98/2 Project for Bumi Armada/SPOG

VME has successfully completed (2) of the (5) modules on the 98/2 Project for Bumi Armada/SPOG. The FPSO will be located in Block KG-DWN-98/2 in deep waters off the East Coast of India.

Image

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Modules Completed:
  • M51 Seawater treatment Modules (Shipped May 17, 2022)
  • M54 Hydrocarbon Dewpoint and Gas Dehydration Modules (Shipped May 31, 2022)
Project Summary:

Bumi Armada/SPOG is providing an FPSO to ONGC, which is developing the New Exploration Licensing Policy (NELP) for Block KG-DWN-98/2 in deep waters off the East Coast of India. The KG-DWN-98/2 block is located within 25-40 km of the nearest landfall and is adjacent to RIL’s KG-D6 field and GSPC’s Deendayal field. The water depth in this block varies between 300 and 3,200 metres.

VMEAP was awarded a contract from SPOG for 5 Modules:
  • M40 Produced Water Treatment Module (in production)
  • M51 Seawater treatment Modules (Shipped May 17, 2022)
  • M53 Chemical Injection Module (in production)
  • M54 Hydrocarbon Dewpoint and Gas Dehydration Modules (Shipped May 31, 2022)
  • M90 Metering Laydown Module (in production)
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