Bumi Armada, Eni Ink Angola FPSO LoI Worth USD 2.9 Bln

Malaysia-based Bumi Armada Berhad has received a Letter of Intent (LoI) from eni Angola S.p.A, for the award of a contract for the chartering, operation and maintenance of a FPSO vessel to a consortium of Bumi Armada Offshore Holdings Limited and Angoil Bumi JV Limitada (ABJL) for deployment at Block 15/06, East Hub located offshore Angola.

The LOI authorizes Bumi Armada to start engineering and procurement work on the FPSO immediately with a contract effective date of 28 March 2014. First oil is scheduled for end October 2016. The Contract, has an indicative value of approximately USD2.9 billion (equivalent to approximately RM9.5 billion).

Chief Executive Officer/Executive Director of Bumi Armada, Mr. Hassan Basma said, “This LOI is our second large (capex of more than USD1 billion) FPSO award in 6 months and underscores our successful migration into the large-project FPSO sector. This is the second time eni has turned to Bumi Armada for an FPSO in West Africa and we will continue to collaborate with our tried and tested value-chain, as we have done in the past, to successfully deliver this project for our repeat customer.

“This project is our first VLCC-tanker conversion. The Armada Ali will be used for conversion. The 15/06 FPSO will be delivered in 31 months and this project will take Bumi Armada’s FPSO fleet to eight, clearly moving us into the top-tier of global FPSO players.”

Press Release, March 31, 2014; Image: atlasmaritime