1. INTRODUCTION

Bumi Armada Berhad (“Bumi Armada”) wishes to announce that its joint-venture company, SP Armada Clean Energy Ventures Private Limited (“SPACEVPL”) has entered into a License Agreement (“License Agreement”) with the Board of Trustees for the Port of Mumbai (“MbPT”) (formerly the Bombay Port Trust) on 18 May 2021 to set-up, operate and maintain a floating storage and regasification unit (“FSRU”) in Mumbai harbour (“Project”) for a period of 30 years (“License Period”).

2. SALIENT INFORMATION ON THE PROJECT

Under the License Agreement, both SPACEVPL and MbPT will have 270 days from the date of execution of the License Agreement to fulfil certain conditions precedent, upon the fulfilment of which, the License Agreement will become effective and the License Period shall commence. Such conditions precedent include SPACEVPL securing financing, obtaining applicable permits for commencement of construction works, and signing of the agreement between the FSRU owner/ charterer and SPACEVPL for providing the FSRU for the License Period.

At the end of the License Period, ownership of the infrastructure which includes the pipeline and jetty, except for the FSRU, shall be transferred to MbPT.

Further details relating to the Project will be announced when there are further material developments.

SPACEVPL is 51%:49% owned by Shapoorji Pallonji Oil and Gas Private Limited (“SPOGPL”) and Bumi Armada Netherlands B.V. (“BANBV”), a wholly-owned subsidiary of Bumi Armada. MbPT is an autonomous body of the Government of India.

3. FINANCIAL EFFECTS

The Project will not have any effect on the share capital and shareholding structure of the Company. The Project, however, is expected to contribute positively to the earnings and net assets per share of the Bumi Armada group of companies.

4. RISKS ASSOCIATED WITH THE PROJECT

There is a risk that the conditions precedent referred to in paragraph 2 above may not be satisfied within the 270 days’ time period, on occurrence of which, SPACEVPL and MbPT will have an additional 50 days to fulfil the conditions precedent subject to payment of liquidated damages by SPACEVPL. If, however the conditions precedent are still not satisfied after the further 50 days, then either SPACEVPL or MbPT can terminate the License Agreement.

Upon the commencement of the License Period, the risks associated with the Project are normal construction and operational risks which can be mitigated through Bumi Armada's system of project management and internal business controls as well as past experience with the same joint venture partner for several Floating Production Storage Offloading  vessels in India.

In order to achieve a financially successful project, SPACEVPL will have to sell the terminal capacity and regasification to potential customers. To this end, there is a focused marketing strategy in place.

5. DIRECTORS AND MAJOR SHAREHOLDER’S INTERESTS

None of the Directors and/or Major Shareholders of the Company or persons connected with them have any interest, direct or indirect in the Project.

This announcement is dated 19 May 2021.