KUALA LUMPUR (June 28): Shares in offshore energy facilities and services provider Bumi Armada Bhd rose 3.47% at mid-morning today after its Armada Kraken floating production storage and offloading (FPSO) facility achieved first oil on the Kraken field in the UK North Sea.

At 10.27am today, Bumi Armada rose 2.5 sen to 74.5 sen with 3.61 million shares done.

In a statement today, the company said the production rate is being increased in a phased manner and the FPSO will be further commissioned for final acceptance.

Bumi Armada executive director and chief executive officer Leon Harland said achieving first oil on the Armada Kraken FPSO was an important milestone as it works to deliver oil for clients, Enquest PLC and Cairn Energy PLC, and towards receiving the charter income for Bumi Armada.

"The commissioning and operating teams have made tremendous efforts to achieve this milestone while remaining focused on safety of all people onboard the FPSO, as well as the integrity of our asset.

"The Armada Kraken is the third out of four FPO projects that Bumi Armada is starting-up this year.

"She is our first ever heavy oil production facility and has the largest liquid handling capacity in our fleet (460,000 bbls of liquid per day) and she marks Bumi Armada's entry into the North Sea as a production facilities owner, operator and duty holder," said Harland.

He said these were positive steps for the group as it continues to increase cash flows and revenues from the four major projects that were under construction in the last three years.