Bumi Armada JVs secure RM2bil contracts from India's oil firm


  • Corporate News
  • Friday, 25 Sep 2020

KUALA LUMPUR: Bumi Armada Bhd's joint ventures with Shapoorji Pallonji Oil & Gas Pte Ltd in India have secured awards from the country's state-owned oil company for operations and maintenance works related to the Armada Sterling Floating Production, Storage and Offloading (FPSO) vessel in Mumbai.

In the larger of the two awards, the group's JV company Armada D1 Pte Ltd (Singapore) has secured a US$370mil (RM1.54bil) contract from Oil and Natural Gas Corporation Ltd (ONGC) of India for the bareboat charter lease of the Armada Sterling FPSO to be operated in the ONGC D1 field located 200km off the west coast of Mumbai.

Armada D1 is 49% owned by Bumi Armada with the remaining 51% belonging to Shapoorji Pallonji Oil & Gas.

The lease is for a fixed period of 10 years effective from Sept 25, 2020, with an annual option to extend for up to five years.

The ONGC also gave a second award is to Shapoorji Pallonji Armada Oil & Gas Services Pte Ltd (India) for the operation and maintenance of the Armada Sterling FPSO valued at INR9.2bil (about RM520mil).

This JV is 60:40 owned by Shapoorji Pallonji Oil & Gas and Bumi Armada.

The contract is for a fixed period of 10 years, effective from Sept 25, 2020, with an annual option to extend the charter for up to five years.

Trading in Bumi Armada shares was halted from 9.16am to 10.16am today. Upon resumption of trading, the counter was up 0.5 sen to 26.5 sen a share on the back of 36 million units traded.
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