KUALA LUMPUR (April 15): Bumi Armada Bhd said the extension of the floating production storage and offloading (FPSO) vessel contract awarded to its joint-venture in India has been delayed due to the current lockdown there.

The contract was awarded to Shapoorji Pallonji Bumi Armada Offshore Private Ltd (SPBAOPL) by India’s State-owned Oil and Natural Gas Corp Ltd (ONGC).

“According to ONGC, approval for formalisation of the contract extension has been delayed due to the COVID-19 lockdown in India,” Bumi Armada said in a filing with Bursa Malaysia.  

It added that ONGC has requested SPBAOPL to process the case with the relevant authorities for obtaining permits and extension to ensure continuity of operations at site.

Bumi Armada owns 49% less 1 share in SPBAOPL, while the other 51% plus 1 share is held by Shapoorji Pallonji Oil and Gas Private Ltd of India.

SPBAOPL recently received notification from ONGC about their intention to extend the charter hire of the Armada Sterling FPSO from April 20, 2020.

The original contract was signed on Aug 10, 2011. Armada Sterling FPSO was chartered by ONGC to operate at an oilfield located 200km off the coast of Mumbai.

The contract has a tenure of seven years, with six annual extension options. The original seven-year firm charter will expire on April 19, 2020.

Bumi Armada’s share price closed unchanged at 17.5 sen, valuing the group at RM1.03 billion. Some 85.88 million shares were traded. Year to date, the counter has fallen 67%.