KUALA LUMPUR (Aug 11): Bumi Armada Bhd has inked a supplemental agreement for additional job scope worth US$134 million — about RM576 million — from Russia's LUKOIL-Nizhnevolzhskneft LLC.
This extra engineering, procurement, construction and installation scope will involve the laying of subsea pipelines and the undertaking of post-trenching and back-filling works by Bumi Armada's subsea construction assets.
The work is to be done on sections of the Filanovsky field in the Russian sector of the Caspian Sea, said Bumi Armada in a statement this evening.
The works have started and is expected to be completed in the second half of 2018, said Bumi Armada.
It expects the supplementary deal to contribute positively towards its earnings, especially the offshore marine services' segment, during the contract period.
"Bumi Armada has been working with LUKOIL in the Caspian since 2012 and this supplemental agreement highlights the continuing strong working relationship with our client, and our proven track-record to deliver high quality Subsea Construction services in the Caspian Sea," said Bumi Armada's executive director and chief executive officer Leon Harland.
"The work involved in this additional contract with LUKOIL relates to the installation of approximately 20km of pipelines in the Filanovsky field in the Russian sector of the Caspian Sea and where our team will use both the Armada Installer and Armada Constructor vessels," said Harland.
Bumi Armada shares slid 1 sen or 1.45% to settle at 68 sen, after 7.09 million shares were traded, giving it a market value of RM3.99 billion.