Bumi Armada secures third FPSO project in India worth RM8.8 billion

Bumi Armada secures third FPSO project in India worth RM8.8 billion

KUALA LUMPUR: Shapoorji Pallonji Bumi Armada Godavari Pvt Ltd (SPBAG), a joint venture owned 30 per cent by Bumi Armada Bhd, has secured a US$2.1 billion (RM8.8 billion) contract from India’s state-owned Oil and Natural Gas Corporation Ltd (ONGC).

In a statement today, Bumi Armada said the nine-year contract is for the charter hire and operations of a floating production, storage and offloading vessel (FPSO)

“The FPSO will operate in the ONGC NELP Block DWN 98/2 Development Cluster-II field, located off the west coast of Kakinada, India,” the offshore energy facilities and services provider said.

ONGC has the option to extend the contract for up to seven years on an annual basis. If fully exercised, the extensions would be worth about US$655 million (RM2.7 billion), the company said.

Bumi Armada’s partner in SPBAG is Shapoorji Pallonji Oil & Gas Pte Ltd (SPOGPL) of India, which holds the remaining 70 per cent stake.

Bumi Armada executive director and chief executive officer Leon Harland said: “The joint venture with SPOGPL has been a very successful partnership, this being our third FPSO project together in India and fourth in total. This is positive result for the group and the project will add value to Bumi Armada going forward.”

Tags assigned to this article:
8.8 billionbumi armadaFPSOIndia