Husky-CNOOC awards Bumi Armada-led venture USD 1.18bn FPSO contract offshore Indonesia

Submitted by Paddy Harris on Tue, 2014-08-19 15:13

19th August 2014

Bumi Armada has led a consortium appointed as the floating production, storage and offloading vessel (FPSO) lease contractor for the Madura BD Field, approximately 65 kilometres east of Surabaya and about 16 kilometres south of Madura Island, offshore Indonesia via a Letter of Intent (LOI) issued by Husky-CNOOC Madura Limited (HCML)

Husky-CNOOC awards Bumi Armada-led venture USD 1.18bn FPSO contract offshore Indonesia

Members of the consortium include Bumi’s subsidiary, Bumi Armada Offshore Holdings Limited (BAOHL), together with its joint venture company, PT Armada Gema Nusantara (PT AGN)

“Indonesia has proven reserves of 3.9 billion barrels of oil and 141 trillion cubic feet of natural gas and we are excited to be a part of Indonesia’s energy development,” said Hassan Basma, executive director and chief executive officer of Bumi Armada. “Our track record of delivering on time, within budget, safe and reliable FPSOs, was instrumental in securing this award.”

Members of the consortium include Bumi’s subsidiary, Bumi Armada Offshore Holdings Limited (BAOHL), together with its joint venture company, PT Armada Gema Nusantara (PT AGN).

Pursuant to the LOI, the consortium will supply a FPSO vessel to HCML at a total contract value of USD 1.18bn for a fixed period of 10 years with options of five annual extensions worth an aggregate value of USD 147m, if the options are fully exercised by HCML.

PT AGN is an Indonesian joint venture company of BAOHL and PT Gema Marine Services.

HCML is an oil and gas company based in Jakarta, with its operations offshore Madura Island located in the Madura Straits, offshore East Java, Indonesia. The shareholders of HCML are CNOOC Southeast Asia Limited, Husky Oil Madura Partnership and SMS Development Limited holding 40 per cent, 40 per cent and 20 per cent in HCML respectively.