Bumi Armada secures FPSO contract extension in Nigeria
Bumi Armada Berhad has informed that its subsidiaries Armada Oyo Ltd. (“AOL”) and Bumi Armada (Singapore) Pte. Ltd. (“BASPL”) have signed 2 contracts with Oceanic Consultants Nigeria Limited (“Oceanic”) for the continued deployment of the FPSO Armada Perdana (the “FPSO”) at the Oyo Field Development (the “Oyo Field”) located offshore of Nigeria.
Oceanic signed a Bareboat Charterparty Contract with AOL for the charter of the FPSO, and a Contract for Provision of Operational and Maintenance Services with BASPL for the operation and maintenance of the FPSO (collectively, the “Contracts”).
The FPSO has been deployed to work at the Oyo Field since 2008 under contracts with the previous operator of the Oyo Field, Nigerian Agip Exploration Ltd (“NAE”). As NAE is no longer the operator of the field, the contracts with NAE were ended by mutual agreement on 31 December 2013. The FPSO will continue its deployment at the Oyo Field under the Contracts signed with Oceanic. Oceanic will, in turn, provide the use of the FPSO and the related services to the current operator of the Oyo Field, CAMAC Energy Inc.
Each of the Contracts is for an initial period of 7 years starting from 1 January 2014. Oceanic has the option to extend each of the Contracts for 2 additional periods of 12 months each. The aggregate value of the Contracts for the initial period is approximately USD381 million (equivalent to approximately RM1.3 billion), with a further aggregate value of USD108 million (equivalent to approximately RM360 million) if the extension options are fully exercised by Oceanic.
FPSO Armada Perdana has a production capacity of 40,000 barrels of oil per day, and storage capacity of 1.1 million barrels. It currently supports our daily production of approximately 2,000 barrels of oil and 40 mmcf of natural gas from the Oyo Field in OML Block 120 offshore Nigeria.
“Securing this infrastructure for up to seven years is another milestone towards the growth of CAMAC,” said Segun Omidele, Senior Vice President of Exploration and Production at CAMAC.