Bumi Armada: Madura BD FPSO contract delayed again

  • Business & Finance

Malaysia’s Bumi Armada and Husky-CNOOC Madura Limited (HCML) have mutually agreed to further extend the period for the execution of a contract to supply an FPSO  for Madura BD field offshore Indonesia. 

According to this agreement, the Letter of Intent for the FPSO supply will terminate on November 27, 2014, subject to an extension as may be mutually agreed between HCML and Bumi Armada or upon signing of the contract.

The companies 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 says the parties have finalised clarifications and are procuring relevant internal approvals to execute the contract.

This is the third extension so far, the first one was announced on October 14 and the second one on October 31, 2014.

Offshore Energy Today Staff

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