INTRODUCTION
Bumi Armada Berhad ( Bumi Armada ) is pleased to announce that its subsidiary, Bumi Armada Navigation Sdn Bhd ( BAN ) had on 13 January 2012 signed a contract with PetrÑleo Brasileiro S.A. ( Petrobras ) for the provision of one (1) Anchor Handling Towing Support (AHTS) vessel (the Contract ).
The AHTS vessel will be supporting research activities as well as hydrocarbon and mining activities developed by Petrobras in the Brazilian continental shelf. Petrobras is a leading global integrated energy company operating in several segments of the Oil & Gas industry.
DETAILS OF THE CONTRACT
The Contract is for a period of four (4) years with an extension option of another four (4) years. The Contract is expected to be effective by the first quarter of 2012, when Petrobras is anticipated to formally accept delivery of the vessel.
FINANCIAL EFFECTS
The total award is valued at approximately RM155 million and is expected to contribute positively to the revenue and earnings of Bumi Armada Group for the financial year ending 31 December 2012 and the financial periods thereafter for the duration of the award.
RISK ASSOCIATED WITH THE CONTRACT
The risks associated with the Contract are normal operational risks which can be mitigated through Bumi Armadas system of project management and internal business controls.
DIRECTORS AND MAJOR SHAREHOLDERS INTERESTS
None of the Directors and/or major shareholders of the Company or persons connected with them have any interest, directly or indirectly in the said Contract.
This announcement is dated 16 January 2012.