Bumi Armada yet to receive payments from Erin Petroleum

PETALING JAYA: Bumi Armada Bhd continues to engage with Erin Petroleum Nigeria Limited (EPNL) to reach an amicable solution for the outstanding payments due to its wholly-owned subsidiaries.

Bumi Armada said despite numerous discussions with EPNL, payments due to Bumi Armada (Singapore) Pte Ltd (BASPL) and Armada Oyo Limited (AOL) for the provision of services by BASPL and AOL to EPNL under the operational and maintenance (O&M) services contract and bareboat charterparty contract respectively, remain outstanding.

“However, following meetings with the Department of Petroleum Resources (DPR) of Nigeria and EPNL subsequently, BASPL and AOL have allowed the flow of produced oil into the FPSO (floating, production, storage, and offloading vessel) cargo tanks,” Bumi Armada said in a stock exchange filing.

In June, BASPL and AOL each issued a notice of suspension to EPNL, a subsidiary of Erin Energy Corporation, to suspend the provision of services by BASPL and AOL under the O&M contract and charterparty respectively due to longstanding delays in the charterparty payments due to AOL, as well as irregular payments on the O&M contract to BASPL.The amount due was not mentioned.

On Feb 17, 2014, BASPL had entered into the O&M contract with Oceanic Consultants Nigeria Limited for the provision of O&M services for the FPSO Armada Perdana deployed at the Oyo Field Development located offshore of Nigeria; while AOL entered into the charterparty with Oceanic for the charter of the FPSO by AOL to Oceanic.

Bumi Armada closed unchanged at 69 sen yesterday with 3.28 million shares traded.