Bumi Armada, Eni sign $2.9B Angola FPSO LOI
- Business & Finance
Bumi Armada will convert a Very Large Crude Carrier into an FPSO which will serve Eni in Angola.
Malaysia-based international offshore oilfield services provider, Bumi Armada Berhad has received a Letter of Intent from eni Angola S.p.A , a wholly-owned subsidiary of Eni S.p.A. the Italian multinational oil and gas company, wherein eni Angola has stated its intention to award a contract for the chartering, operation and maintenance of a floating production, storage and offloading vessel (“FPSO”) , to a consortium of Bumi Armada Offshore Holdings Limited (BAOHL, a wholly-owned subsidiary of Bumi Armada) 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, Hassan Basma said, “This LOI is our second large (capex of more than USD1billion) 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.”