Bumi Armada Wins Third FPSO Project in India
Illustration; Source: Flickr – under the CC BY 2.0 license; Image by: Frans BerkelaarMalaysia-based Bumi Armada has secured a contract from India’s Oil and Natural Gas Corporation Ltd (ONGC) to provide a floating production, storage and offloading (FPSO) vessel.
Namely, the company’s joint venture Shapoorji Pallonji Bumi Armada Godavari Private Limited
(SPBAG) received a Notification of Award for the FPSO, that will operate off the west coast of Kakinada, India.
The charter hire and operations deal is for a fixed period of nine years, valued at around USD 2.1 billion (MYR 8.8 billion). ONGC has the option to extend the contract for up to seven years. On an annual basis and if fully exercised, the extensions would be worth USD 655 million (MYR 2.7 billion).
“The JV with SPOGPL has been a very successful partnership, this being our third FPSO project together in India and fourth in total,” Leon Harland, Executive Director and Chief Executive Officer, said.
“This is a positive result for the group and the project will add value to Bumi Armada going forward,” Harland added.
SPBAG is a 30:70 joint venture between Bumi Armada and Shapoorji Pallonji Oil & Gas Private Limited of India.
