Bumi Armada bags $1.18 B worth FPSO contract
- Business & Finance
Husky-CNOOC Madura Limited (HCML) and Malaysia’s Bumi Armada have signed a letter of intent for the supply of an FPSO for the Madura BD Field.
Madura BD Field is located approximately 65 km east of Surabaya and about 16km south of Madura Island, offshore Indonesia.
Pursuant to the LOI, Bumi Armada will supply an FPSO to HCML at a total contract value of USD1.18 billion (RM3.76 billion) for a fixed period of ten years with options of five annual extensions worth an aggregate value of USD147 million (RM469 million).
The contract is expected to be executed within forty-five days of the date of the LOI of 8 August 2014.
Executive Director and Chief Executive Officer of Bumi Armada, Hassan Basma said: “Indonesia has proven reserves of 3.9 billion barrels of oil and 141 trillion cubic feet of natural gas and we are excited to be a part of Indonesia’s energy development. Our track record of delivering on time, within budget, safe and reliable FPSOs, was instrumental in securing this award.”