Bumi Armada: Another hold-up in Madura BD FPSO contract signing

  • Business & Finance

Malaysia’s provider of offshore vessels and floating production units, Bumi Armada, and Husky-CNOOC have once again postponed the signing of a contract for a floating, production, storage and offloading vessel (FPSO) for the Madura BD field, offshore Indonesia.

In a Bursa Malaysia filing dated December 4, Bumi Armada said that the companies have agreed to extend the period for signing of the contract until December 10, 2014. According to Bumi Armada, the extension is to enable parties to procure relevant internal approvals to execute the contract.

The companies signed a letter of intent (LOI) in August 2014 according to which Bumi Armada would deliver an FPSO vessel to the Husky-CNOOC joint venture for the use at the Madura BD Field. The price set in the letter of intent was $1.18 billion. The vessel would be used for ten years with options of five annual extensions worth $147 million in total.

This is the fourth extension so far, the first one was announced on October 14, the second one on October 31, 2014 and the last one was agreed upon in November.

Offshore Energy Today Staff

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