Bumi Armada JV lands FPSO job with India’s ONGC
- Business & Finance
A joint venture of Malaysia’s FPSO provider Bumi Armada has been awarded a charter contract for one of its FPSOs by India’s ONGC.
Bumi Armada said in a Bursa Malaysia filing on Monday that its joint venture company, Shapoorji Pallonji Bumi Armada Godavari Private Limited (SPBAG), had received a notification of award from Oil and Natural Gas Corporation Limited (ONGC) of India, for the charter hire and operations of one FPSO.
SPBAG is a 30:70 joint venture between Bumi Armada and Shapoorji Pallonji Oil & Gas Private Limited of India (SPOGPL). ONGC is India’s state owned oil company listed on the Bombay Stock Exchange and the National Stock Exchange of India Ltd.
The contract is for a fixed period of nine years, valued at approximately $2.1 billion. ONGC has an option to extend the contract for an additional seven years on a yearly basis at an aggregate contract value of approximately $655 million, if all the extension options are exercised.
The contract will be operated by SPBAG for the ONGC NELP Block KG – DWN 98/2 Development Project Cluster-II field located on the east coast of Kakinada, offshore India.
Commenting on the award, Leon Harland, Executive Director and Chief Executive Officer, said, “This is a very positive result for Bumi Armada. We are extremely proud that our JV with SPOGPL has been awarded our third FPSO project with ONGC.
“The JV with SPOGPL has been a very successful partnership, this being our third FPSO project together in India and fourth in total.”
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