Bumi Armada: Contract signing for Madura BD FPSO still on hold
- Business & Finance
Malaysia’s provider of offshore vessels and floating production units, Bumi Armada, and Husky-CNOOC Madura Limited (HCML) have agreed to delay the signing of an FPSO contract for Madura BD field off Indonesia.
The companies have signed a Letter of Intent in August 2014 according to which Bumi Armada would deliver a floating, production, storage and offloading (FPSO) vessel to Husky-CNOOC for use on the Madura BD field, offshore Indonesia. The vessel would be used for a fixed period of ten years at a contract value of USD 1.18 billion. The letter also included options for five annual extensions worth an aggregate value of USD 147 million, if the options are fully exercised by HCML.
Bumi Armada has now informed that HCML has, via a letter dated October 31, 2014, agreed to extend the period for the signing of the Contract until November 6, 2014.
According to Bumi Armada’s statement, the purpose of the extension is to enable the companies to finalize the required clarifications.
This is the second delay in signing of the contract, the first one was announced on October 14, 2014.
Offshore Energy Today Staff