Bumi Armada Secures Loan for FPSO Expenses

Bumi Armada Secures Loan for FPSO Expenses

Malaysia-based international offshore oil and gas services provider, Bumi Armada Berhad announced today that its jointly controlled entity, Armada D1 Pte. Ltd. has secured syndicated term loan facilities of up to USD276.4 million from Allahabad Bank, Bank of Baroda, Bank of India, Indian Bank, Indian Overseas Bank, UCO Bank and Union Bank of India.

The facility will be used to part finance all costs and expenses in relation to the acquisition, conversion, refurbishment, mobilization, transport, hook-up, and mooring and installation of the FPSO Armada Sterling and to refinance Armada D1’s existing bridge loans.

Armada D1 is a joint venture company between Bumi Armada Berhad and Shapoorji Pallonji and Company Limited, India, whose principal activities are owning, chartering and managing ships and vessels, and providing marine support and other offshore services to oil and gas companies.

Bumi Armada’s Executive Director/CEO, Mr Hassan Basma said, “Our commitment to our delivery model of Global Execution, Local Delivery, our shared value chain and our collaborative approach vis a vis our partners, the SP Group and Keppel, have together enabled us to deliver this FPSO in record time.“

“As the Armada Sterling was built for India, Bumi Armada together with our partners sought to engage and involve Indian financial institutions. We welcome these banks to our value chain and thank them for their invaluable support; and providing financing at competitive rates despite a backdrop of global economic uncertainty playing out across the US and Europe. We are grateful to the banks for their support and confidence in our business.”

“We have delivered the FPSO Armada Sterling safely, with no LTIs* and in record time. She arrived at the D1 field of the coast of Mumbai on 10 December.”

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Bumi Armada, December 19, 2012