Second extension for Bumi Armada’s FPSO contract, share price hits 52-week low

PETALING JAYA: Bumi Armada Bhd, which has seen some RM5bil being wiped out from its market capitalisation since mid-June when oil prices began to fall, has said that it has postponed the execution date of its RM3.76bil contract with Husky-CNOOC Madura Ltd (HCML) for the second time.

The floating production, storage and offloading (FPSO) contract was first announced on Aug 19 when its unit, Bumi Armada Offshore Holdings Ltd, along with its joint-venture company PT Armada Gema Nusantara, were appointed as the FPSO lease contractor for the Madura BD Field via a letter of intent (LOI) issued by HCML.