Bumi Armada delays signing of US$1.18 billion FPSO contract

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KUALA LUMPUR (Oct 14): Bumi Armada said in an announcement to Bursa Malaysia today that the Jakarta-based oil and gas firm Husky-CNOOC Madura and the consortium, which comprises of Bumi Armada's unit Bumi Armada Offshore Holdings Limited and its joint venture company PT Armada Gema Nusantara, have agreed to sign a 10-year charter contract for a floating production, storage and offloading (FPSO).

The charter contract carries a tenure of 10 years for US$1.18 billion, with an option for an extension of five years.   

To recap, Bumi Armada received a letter of intent from Husky-CNOOC on Aug 14 this year, on the FPSO contract.

Bumi Armada share price has been on a decline since the start of the year. The stock has shed 38% or about 94 sen year-to-date. It closed at RM1.53 today, up six sen after it hit a historical low of RM1.47 yesterday.