Bumi allows Erin to flow Oyo oil into FPSO tanks despite debts

Malaysian FPSO operator Bumi Armada has allowed Erin Energy to flow its Oyo field oil into cargo tanks of the FPSO Armada Perdana, despite Erin’s outstanding debts towards the vessel owner. 

To remind, Bumi Armada back in June suspended the bareboat charter and operations and maintenance contracts with Erin Energy for the FPSO Armada Perdana operating at the Oyo oil field offshore Nigeria.

According to Bumi, the suspension was due to longstanding delays in the bareboat charter payments due to Bumi Armada, as well as irregular payments on the operations and maintenance contract. Prior to suspension, Bumi issued notices of overdue payment and letters of demand requesting immediate payment but Erin had not responded, Bumi claimed.

In its Bursa Malaysia filing on Wednesday, August 9 Bumi informed that, despite numerous discussions with Erin Petroleum Nigeria, payments due to Bumi and its subsidiary Armada Oyo remain outstanding.

However, Bumi added, following meetings with the Department of Petroleum Resources of Nigeria and Erin subsequently, Bumi Armada and Armada Oyo Limited have allowed the flow of produced oil into the FPSO cargo tanks.

The FPSO owner concluded it continues to engage with Erin in order to reach a solution for the outstanding payments.

Offshore Energy Today Staff