KUALA LUMPUR: Bumi Armada Bhd said its joint venture company in India has entered into a deal to set up and operate a floating storage and regasification unit (FSRU) in Mumbai harbour.
The project is for a period of 30 years.
Bumi Armada, in a filing with Bursa Malaysia today said SP Armada Clean Energy Ventures Private Ltd (SPACEVPL) on May 18 has entered into a License Agreement with the Board of Trustees for the Port of Mumbai (MbPT) to set-up, operate and maintain a FSRU in Mumbai harbour.
"In order to achieve a financially successful project, SPACEVPL will have to sell the terminal capacity and regasification to potential customers," Bumi Armada said.
"To this end, there is a focused marketing strategy in place," it added.
SPACEVPL is 51%:49% owned by Shapoorji Pallonji Oil and Gas Private Limited and Bumi Armada Netherlands BV. MbPT is an autonomous body of the Government of India.
Both SPACEVPL and MbPT will have 270 days from the date of execution of the license agreement to fulfil certain conditions precedent, upon the fulfilment of which, the License Agreement will become effective and the license period shall commence.
"Such conditions precedent include SPACEVPL securing financing, obtaining applicable permits for commencement of construction works, and signing of the agreement between the FSRU owner/ charterer and SPACEVPL for providing the FSRU for the License Period," Bumi Armada said.