Bumi Armada bags two contracts in India worth RM2.1b

-A +A

KUALA LUMPUR (Sept 25): Bumi Armada Bhd has bagged two contracts from India’s state-owned oil company Oil and Natural Gas Corporation Ltd (ONGC) worth a total of RM2.06 billion for works involving the Armada Sterling Floating Production, Storage and Offloading vessel (FPSO) in Mumbai.

The Armada Sterling FPSO is to be operated in the ONGC D1 field located 200km off the west coast of Mumbai, India, said Bumi Armada in filings to Bursa Malaysia today.

One of the two contracts secured by its joint-venture company (JVCo) Armada D1 Pte Ltd (Singapore) is for a bareboat charter lease (BBC contract) with an estimated total value of US$370 million (approximately RM1.54 billion).

Armada D1 is 51% owned by Shapoorji Pallonji Oil & Gas Pte Ltd (SPOGPL), while the remaining 49% is owned by Bumi Armada.

The other contract received by its JVCo Shapoorji Pallonji Armada Oil & Gas Services Pte Ltd (India) (SPAOGSPL) is for operation and maintenance (O&M) and has an estimated total value of INR9.2 billion (approximately RM520 million).

SPAOGSPL is 60% owned by SPOGPL, while 40% belongs to Bumi Armada’s wholly-owned subsidiary Bumi Armada (Singapore) Pte Ltd.

Both the BBC and O&M contracts are for a fixed period of 10 years with an annual option to extend for up to five additional years and will be effective from Sept 25, 2020.

They are expected to contribute positively to the group’s future earnings during their tenure, said Bumi Armada.

Separately, Bumi Armada also announced the expiry of the contract extension for the charter hire of the Armada Sterling FPSO, which expired yesterday.

At 10.53am, shares of Bumi Armada rose one sen or 4% to 26 sen, valuing the counter at RM1.47 billion. Year to date, the counter fell 50.94% from 53 sen.

Surin Murugiah