ONGC, Bumi Armada in $740 Mln FPSO Charter Deal
Malaysia-based international offshore oil and gas services provider, Bumi Armada Berhad announced today that its jointly controlled entity, SP Armada Oil Exploration Private Limited (“SP Armada”) has received a Notification of Award (“NOA”) from Oil and Natural Gas Corporation Limited ( “ONGC”) for charter hiring of a Floating Production, Storage and Offloading Vessel (“FPSO”) for the Cluster-7 field in India.
The contract is for a fixed period of nine years with an extension option of an additional seven years on yearly basis. The contract is valued at approximately USD 740 million with an additional USD 340 million for the optional extension period.
The FPSO will be owned and operated by SP Armada in the ONGC Cluster-7 (“C-7”) field located about 210 kilometres off the western coast of Mumbai, India. The C-7 field which comprises several fields including B-192, B-45 and WO-24, are in water depths of about 85 metres.
The FPSO will have minimum storage of 510,000 barrels of oil, and will be equipped with oil production and stabilization, water injection, gas compression/dehydration to meet gas lift/injection and sales requirements, and internal weathervaning turret. Delivery of the FPSO will be within 21 months from the date of the award.
Bumi Armada’s CEO, Hassan Basma said, “The award by ONGC underscores their trust in our delivery model. With the completion of the FPSO Armada Sterling last year, we have demonstrated that we have the ability to deliver on our promises and have the competency, organization skills and financial strength to undertake large complex projects in harsh environment. Together with our partners, the Shapoorji Pallonji group, we are looking forward to further strengthening our relationship with our client, ONGC.
Work will commence immediately on our proposed donor vessel and we will follow a similar execution model using the same value chain that had served us well in the conversion of our previous FPSO for India.”
February 18, 2013