By NUR HAZIQAH A MALEK
BUMI Armada Bhd’s joint venture (JV), Shapoorji Pallonji Bumi Armada Godavari Pte Ltd (SPBAG), has bagged a contract worth US$2.1 billion (RM8.8 billion) from India’s Oil and Natural Gas Corp Ltd (ONGC).
In a filing to Bursa Malaysia yesterday, the group noted the contract is for the charter hire and operation of one floating production, storage and offloading vessel (FPSO) for nine years.
According to Bumi Armada, ONGC has the option to extend the contract for an additional seven years on a yearly basis, and if all the extension options are exercised, its value would be approximately US$655 million.
Bumi Armada ED and CEO Leon Harland said the company is proud that its JV partner has been awarded its third FPSO project with ONGC.
“The JV with Shapoorji Pallonji Oil and Gas Pte Ltd of India (SPOGPL) has been a very successful partnership, this being our third FPSO project together in India and fourth in total.
“This is a positive result for the group and the project will add value to Bumi Armada going forward,” he said.
A Malaysia-based international offshore energy facilities and services provider, Bumi Armada has a 30% stake in SPBAG with SPOGPL holding 70%.
The Malaysian Reserve previously reported that Bumi Armada has refinanced RM2.73 billion worth of short-term debt to “alleviate” one of the group’s main exposures.
For its fourth quarter ended Dec 31, 2018, the group posted a net loss of RM1.26 billion, against its previous net profit of RM63.82 million.