Bumi Armada has finally clinched its long-awaited Madura field floating production storage and offloading (FPSO) vessel deal, announcing that PT Armada Gema Nusantara (PT AGN), a consortium led by one of its units, has signed a contract worth MYR3.98bn ($1.13bn) with a Jakarta-based oil and gas company.
Bumi Armada initially announced the Letter of Intent issued by Husky-CNOOC Madura Ltd (HCML) for the award of the contract to PT AGN in August. PT AGN is an Indonesian joint venture comprising Bumi Armada Offshore Holdings Ltd and PT Armada Gema Marine Services.
The contract is for a period of 10 years, with options for five annual extensions. The vessel is expected to commence operations in the Madura BD field in the fourth quarter of 2016.
“The contract will contribute positively to the earnings of the Bumi Armada Group for the quarter and financial year ending 31 December, 2014, as well as the financial periods thereafter for the duration of the contract,” Bumi Armada said in a stock market announcement.
Meanwhile, Bumi Armada announced earlier that its longtime CEO, Hassan Basma has requested an early release from his contract due to family reasons.
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