However, Hong Leong Investment Bank Research has a Hold and TP of 35 sen, Maybank Investment Bank Research and UOB Kay Hian Malaysia Research a Sell and TP of 11 sen and 10 sen.
KUALA LUMPUR: Bumi Armada Bhd
has been hit by a suspension of its Armada Perdana floating production storage and offloading (FPSO) unit by Erin Petroleum Nigeria Ltd (EPNL).
Bumi Armada said on Tuesday its unit Bumi Armada (Singapore) Pte Ltd (BASPL) was issued with notices of suspension by EPNL in relation to the operations of the FPSO.
It said that BASPL was advised of a purported “force majeure event” by EPNL requesting immediate, orderly shutdown of operations on the FPSO.
BASPL also received a notice of seizure/attachment of goods from a third party informing that the entire crude oil produced and to be produced and stored in Armada Perdana has been seized/attached by a writ of attachment of the Federal High Court, Lagos.
However, Bumi Armada said it was not party to the legal proceedings.
“The estimated financial impact of credit risk recovery for Bumi Armada group to the results for the financial year ending Dec 31, 2018, is approximately RM30mil,” it said.
“The company had sought clarifications from EPNL on such notice of seizure/attachment of goods but EPNL has not responded to the company despite numerous reminders,” it said.
Bumi Armada mintained that the suspension of provision of services under the bareboat charterparty contract and operational and maintenance services contract remains in place.
It also categorically stated that EPNL “is not relieved from its obligation to make full payment” of all payments due to Armada Oyo Ltd (AOL) and BASPL under the contracts.
Bumi Armada said the purported force majeure declaration by EPNL was wrongful under the operational and maintenance services contract.
It was reviewing its legal options, including commencement of legal proceedings against EPNL, to uphold the contractual rights of AOL and BASPL under the contracts.
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