Bumi Armada, Lukoil Sign $280M Caspian Sea Charter Deals

Business & Finance

December 3, 2013

Malaysia’s Bumi Armada Berhad has signed a contract with Russian “Lukoil-Nizhnevolzhskneft” for the provision of six vessels to be deployed at the Vladimir Filanovsky field located at the Caspian Sea.

Under the agreement the company will provide Lukoil with two new built ice-class support vessels and one new built ice-class Multipurpose Duty-Rescue Vessel to be delivered in November 2015; and two support vessels and one rescue vessel (Interim contracts), to be delivered in November 2014 for deployment pending delivery of the Ice-Class Vessels.

Each of the Ice-Class Contracts is for a fixed period of ten (10) years with the possibility of further extensions of up to another 20 years.

The Ice-Class Contracts have an estimated aggregate contract value of USD262 million (equivalent to approximately RM844 million) for the fixed ten (10) years of charter with extensions of up to 20 years at an estimated aggregate value of USD483 million (equivalent to approximately RM1.56 billion) if the Extension Options are fully exercised by Lukoil-NVN.

Each of the Interim Contracts will start in November 2014 and will remain in effect until delivery of the Ice-Class Vessels. The estimated aggregate contract value of the Interim Contracts is USD18 million (equivalent to approximately RM59 million).

V. Filanovsky development

Lukoil, a privately held oil giant from Russia, has recently completed installation of the mounting substructures for the four offshore platforms at the Vladimir Filanovsky oil field in the Caspian Sea.

In 2014 the company will build on them the topside facilities of the producing platform, the living quarters, the processing platform and the riser block as well as a number of catwalk bridges to connect the platforms.

[mappress]
December 03, 2013