Bumi Armada Bhd News

Malaysian oilfield services company Bumi Armada Bhd has found a buyer for its floating production storage and offloading (FPSO) vessel Armada Perdana in Nigerian company Century Energy Services (CESL) for RM167.17 million ($40 million).Kuala Lumpur-based floater player said in a Bursa Malaysia filing that its subsidiary, Armada Oyo Limited (AOL), had entered into an agreement with CES) for the sale of the Armada Perdana.CESL plans to redeploy the vessel to another field in Nigeria, said the statement.CESL has already paid $4.5 million out of a $5.5 million deposit to AOL, with the outstanding amount to be satisfied before the end of the year.Additional vessel expenses incurred from August 1 until the delivery date of the FPSO will be offset against the purchase price.Then…

Bumi Armada Bhd’s wholly-owned unit, Bumi Armada Caspian LLC, has signed a supplementary agreement worth RM576 million (USD 134 million) with Lukoil-Nizhnevolzhskneft LLC (Lukoil) for an additional engineering, procurement, construction and installation (EPCI) scope of work in Russia. Back in December 2013, Bumi Armada had bagged a 10-year, US$262 million contract from Russia’s Lukoil-Nizhnevolzhskneft Ltd. Bumi Armada said the additional scope will involve BAC’s marine spread to lay subsea pipelines and undertake post trenching and back-filling works on sections of the Filanovsky field in the Russian sector of the Caspian Sea. The works on the 20km of various pipelines will involve the Armada Installer and Armada Constructor vessels…

Malaysia’s Bumi Armada Bhd intends to fully enforce its rights, including initiating legal proceedings against Woodside Energy Julimar Pty Ltd for purportedly terminating its charter contract of the Armada Claire Floating Production Storage and Offloading (FPSO) unit. Bumi Armada Berhad has earlier announced that its wholly-owned subsidiary, Armada Balnaves, has received notice from Woodside Energy Julimar terminating the contract for FPSO Armada Claire, currently operating in the Balnaves Field off north-western Australia. The company claimed that the purported notice of termination was not valid, and instead it was tantamount to a cancellation for convenience or alternatively, was a repudiation of the contract by Woodside, pursuant to which the company was entitled to a compensation.

Shipping giant MISC Bhd and oil and gas services provider Bumi Armada Bhd are said to be in merger talk involving the consolidation of the floating production storage offshore (FPSO) businesses of both companies, say local media reports. Petroliam Nasional Bhd (Petronas) owns 62.67% in MISC. As such, investors could be anticipating that Bumi Armada may win Petronas contracts if a deal materialises. If it materialises the consolidation in the FPSO sector will also create a giant in the business. According to news reports, MISC may sell its FPSO business to Bumi Armada in exchange for Bumi Armada shares. Bumi Armada, which is controlled by tycoon T. Ananda Krishnan is the world’s fifth largest FPSO operator, with nine FPSO vessels.

Malaysia-based offshore oil field services provider, Bumi Armada Berhad (“Bumi Armada”), announce  its newbuild programme, ’Steel on Water 2’ Bumi Armada Berhad has issued a Letter of Intent (“LOI”) for four Multi-Purpose Platform Support Vessels (“MPSV”), with an option to build four additional units. This newbuild programme follows fast on the heels of the company’s ‘Steel on Water 1 Programme’ of 20 newbuilds which were all successfully delivered by 2010. The LOI was issued by Bumi Armada Bhd, to Nam Cheong Dockyard Sdn Bhd for the construction of the first four diesel-electric propulsion system, DP2″ MPSVs. The four MPSVs will cost approximately USD 130 million (excluding owner furnished equipment) and are expected to be delivered in the second quarter of 2014.