PETALING JAYA: Bumi Armada Bhd has secured two contracts with an estimated value of RM2.06 billion from India’s state owned oil company Oil and Natural Gas Corporation Ltd (ONGC) relating to its floating production, storage and offloading vessel (FSPO) vessel following the expiry of a previous contract.
According to its Bursa announcement, the group’s joint venture company Armada D1 Pte Ltd (Singapore) has received a bareboat charter lease for its Armada Sterling FPSO vessel by the Indian oil company for a fixed duration of 10 years with an annual option to extend for an additional five years.
Bumi Armada stated that the contract will be effective Sept 25, 2020 with an estimated total value of US$370 million (RM1.54 billion).
Concurrently, its joint venture company, Shapoorji Pallonji Bumi Armada Offshore Pte Ltd has received an operation and maintenance contract for the FPSO vessel from ONGC.
This contract is also for a duration of 10 years with an annual option to extend for an additional five years with an estimated total value of RM520 million.
Prior to the awards, the group’s contract extension for the Armada Sterling vessel has expired on September 24, 2020.
The vessel has been operating in the ONGC D1 field located 200km off the west coast of Mumbai, India since April 2013 and it will continued to be deployed there following the new awards.
