INTRODUCTION
Bumi Armada Berhad ( Bumi Armada ) is pleased to announce that its subsidiary, Bumi Armada Navigation Sdn Bhd ( BAN ) had on 21 March 2012 signed a contract with PetrÑleo Brasileiro S.A. ( Petrobras ) for the provision of one (1) Platform Supply vessel ( PSV ) (the Contract ).
The PSV will be supporting operations with multi-purpose functions of transporting cargo between platforms, rescue and personnel transfer for Petrobras in the Brazilian continental shelf. Petrobras is a publicly traded joint stock corporation and operate as an integrated energy company in several segments of the oil, gas and energy 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 second quarter of 2012 when Petrobras is anticipated to formally accept delivery of the vessel.
FINANCIAL EFFECTS
The total award valued at approximately RM115 million 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 Contract.
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, direct or indirect in the said Contract.
This announcement is dated 21 March 2012.