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KUALA LUMPUR (September 25): Bumi Armada Bhd has secured two contracts from India’s state oil company Oil and Natural Gas Corporation Ltd (ONGC) for a total value of RM2.06 billion for works related to floating production, storage and Armada Sterling download. vessel (FPSO) in Mumbai.
The Sterling FPSO Navy will be operated at the ONGC D1 field located 200 km off the west coast of Mumbai, India, Bumi Armada said in presentations to Bursa Malaysia today.
One of the two contracts guaranteed by their joint venture (JVCo) Armada D1 Pte Ltd (Singapore) is an unmanned lease (BBC contract) with an estimated total value of US $ 370 million (approximately RM1.54 billion).
Armada D1 is 51% owned by Shapoorji Pallonji Oil & Gas Pte Ltd (SPOGPL), while the remaining 49% is owned by Bumi Armada.
The other contract received by your JVCo Shapoorji Pallonji Armada Oil & Gas Services Pte Ltd (India) (SPAOGSPL) is for operation and maintenance (O&M) and has an estimated total value of INR 9.2 billion (approximately RM520 million).
SPAOGSPL is 60% owned by SPOGPL, while 40% is owned by Bumi Armada’s wholly owned subsidiary, Bumi Armada (Singapore) Pte Ltd.
Both the BBC and O&M contracts are for a fixed period of 10 years with an annual option to extend for up to five additional years and will come into effect on September 25, 2020.
They are expected to contribute positively to the group’s future earnings during their tenure, said Bumi Armada.
Separately, Bumi Armada also announced the expiration of the contract extension for the rental of the Armada Sterling FPSO, which expired yesterday.
At 10:53 am, Bumi Armada’s stock was up one sen or 4% to 26 sen, valuing the counter at RM1.47 billion. So far this year, the meter has fallen 50.94% from 53 sen.
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