Bumi Armada Bags RM844 Million Russian Contract

Bumi Armada Bhd, an international offshore oilfield services provider,has bagged a RM844 million (US$262 million) contract from Russia's Lukoil-Nizhnevolzhskneft Ltd to provide three ice-class vessels to service offshore platforms in the Filanovsky field, in the Caspian Sea.

Each of the contracts is for a period of 10 years with further extensions of up to another 20 years with an estimated aggregate value of RM1.56 billion (US$483) if the extension options are fully exercised.

An interim contract of approximately RM59 million (US$18 million) was also signed for the provision of two support vessels and one rescue vessel to be delivered in November next year for deployment pending delivery of the purpose built ice-class vessels.

Bumi Armada Executive Director/Chief Executive Director Hassan Basma said the contracts further reinforce the consolidation of its business in the Caspian region and strengthens the market position.

"It is Bumi Armada's first entry into the Russian Offshore Support Vessel (OSV) sector and our first in building ice class vessels to complement our OSV fleet of some 50 vessels," he said after the contract signing ceremony here Tuesday.

He also said Bumi Armada was looking forward to exploring Africa with Lukoil, specifically Sierra Leone, Ivory Coast and Ghana.

Meanwhile, Hassan said the ice-vessels project is the second collaboration with Lukoil and expects the company's capital expenditure for 2014 to increase to US$2 billion compared to between US$500 million-US$700 million this year.

 

Source: Bernama

Bumi Armada Secured Contract To Supply And Operate FPSO in North Sea

Bumi Armada Bhd (Bumi Armada) announced that it has secured a Letter of Interim Agreement from the UK-listed EnQuest and its partners to supply and operate a Floating Production, Storage and Offloading (FPSO) vessel for the Kraken field in the North Sea. The Kraken field lies in Block 9,350 kilometres (km) north east of Aberdeen, Scotland, and 420km west of Stavanger, Norway.

 

This signifies Bumi Armada’s maiden entry into the large FPSO segment, which brings its total FPSO fleet to seven, placing it among the largest FPSO players in the world.According to HwangDBS Vickers Research Sdn Bhd’s (HwangDBS Vickers Research) analyst, the contract value has not been disclosed yet and the final award is expected to be concluded by November 30, 2013.

 

“We understand that the contract could offer an eight-year firm period and a 17-year extension given the field’s expected production life of up to 25 years. We estimate the charter rate at around US$550 per day, suggesting a whopping US$1.6 billion (circa RM5 billion) contract for the eight-year duration.”

 

The analyst noted that the earnings forecast has been raised to account for the contribution from Kraken FPSO in FY14 and a similar large FPSO in FY15 given Bumi Armada’s focus in this segment which has high entry barriers.

 

“A financing agent has been appointed for this US$1 billion capital expenditure (capex) project which entails 30 months of conversion period before first oil in 2016 to 2017. We expect Bumi Armada’s balance sheet to stay healthy at 0.9 times by FY15.”

 

Meanwhile, analyst Aaron Tan of MIDF Amanah Investment Bank Bhd research arm (MIDF Research) said this job win comes as little surprise as it was much anticipated since August/September 2013. In addition, he highlighted that the company is still a strong contender for the Madura FPSO job by Husky Energy worth around US$400 million.

 

“We are maintaining our buy recommendation premised on expanding topline, increasing orderbook quality value with sizable extension options, sustainable margins of more than 20 per cent, and undemanding valuation,” Tan noted.

 

Source: Borneo Post

Bumi Armada buys support vessel for US$15.8mil

Bumi Armada Bhd, through unit Bumi Armada Offshore Contractor Ltd, has acquired and taken delivery of a multipurpose platform support vessel (MPSV) from Condor Shipco Ltd for US$15.8mil (RM49.12mil).


Bumi Armada executive director-cum-chief executive officer Hassan Basma said the acquisition underpinned the company’s strategy to provide services to the oil and gas industry, as exploration and production moves further from shore to deeper and harsher waters.

“The Armada Condor joins our Transport and Installation fleet, which comprises a derrick pipelay barge and a subsea umbilicals, riser and flowlines (SURF) vessel in providing a broad range of support services for offshore installation and subsea work,” he said in a statement yesterday.

The diesel electric vessel, which was re-named Armada Condor, was rebuilt in 2002, which involved an extension of vessel length, an addition of the Dynamic Positioning 2 (DP) system and thrusters. “The reconstruction ensured the Armada Condor had the facilities and capability for worldwide operations,” Hassan said.

The support vessel has 1,100 square metres of deck space with a deck load capacity of 1,300 tonnes.

The Armada Condor can accommodate 127 people.