General Announcement for PLC
25/09/2020OTHERS BUMI ARMADA BERHAD - BUMI ARMADA JOINT VENTURE SECURES FIXED 10-YEAR OPERATION & MAINTENANCE CONTRACT IN INDIA
BUMI ARMADA BERHAD |
Type | Announcement |
Subject | OTHERS |
Description | BUMI ARMADA BERHAD - BUMI ARMADA JOINT VENTURE SECURES FIXED 10-YEAR OPERATION & MAINTENANCE CONTRACT IN INDIA |
Bumi Armada Berhad (“Bumi Armada”) wishes to announce that its joint-venture company, Shapoorji Pallonji Armada Oil & Gas Services Pte Ltd (India) (“SPAOGSPL”) has received a Notification of Award from Oil and Natural Gas Corporation Limited ("ONGC") of India for the operation and maintenance (“O&M Contract”) of the Armada Sterling Floating Production, Storage and Offloading vessel ("Armada Sterling FPSO") to be operated in the ONGC D1 field located 200km off the west coast of Mumbai, India.
INFORMATION ON THE O&M CONTRACT The O&M Contract is for a fixed period of 10 years with an annual option to extend the charter for up to 5 additional years. The fixed 10-year firm O&M Contract has an estimated total value of INR9.2 billion (approximately RM520 million). The new O&M Contract will be effective from 25 September 2020.
SPAOGSPL is 60%:40% owned by Shapoorji Pallonji Oil & Gas Pte Ltd (“SPOGPL”) and Bumi Armada (Singapore) Pte Ltd, a wholly-owned subsidiary of Bumi Armada. ONGC is India's state-owned oil company listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India Ltd (NSE).
FINANCIAL EFFECTS The O&M Contract is expected to contribute positively to the future earnings of Bumi Armada Group during its tenure.
RISKS ASSOCIATED WITH THE O&M CONTRACT The risks associated with the O&M Contract are normal operational risks on the vessel’s efficiency and reliability in terms of vessel performance, people capability as well as Health Safety Security Environment and Quality performance. These risks 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 FPSOs in India.
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 O&M Contract.
This announcement is dated 25 September 2020.
*Based on the exchange rate of INR1 : RM0.056585 on 24 September 2020 as set out in Bank Negara Malaysia’s website. |
Announcement Info
Company Name | BUMI ARMADA BERHAD |
Stock Name | ARMADA |
Date Announced | 25 Sep 2020 |
Category | General Announcement for PLC |
Reference Number | GA1-24092020-00099 |