Malaysia-based international offshore oilfield services provider, Bumi Armada Berhad received a Letter of Intent (LOI) from eni Angola, a wholly owned subsidiary of eni, the Italian multinational oil and gas company. Eni Angola stated its intention to award a contract for the chartering, operation and maintenance of a floating production, storage and offloading vessel (FPSO), to a consortium of Bumi Armada Offshore Holdings Limited (BAOHL), a wholly-owned subsidiary of Bumi Armada, and Angoil Bumi JV Limitada (ABJL), an Angolan joint venture company of BAOHL and Cosmarg Limitada, for deployment at Block 15/06, East Hub located offshore Angola.
The LOI authorises Bumi Armada to start engineering and procurement work on the FPSO immediately. First oil is scheduled for end-October 2016. The contract has an indicative value of approximately USD 2.9B.
CEO/Executive Director of Bumi Armada Hassan Basma said, “This LOI is our second large (capex of more than USD 1B) FPSO award in six months and underscores our successful migration into the large-project FPSO sector. This is the second time eni has turned to Bumi Armada for an FPSO in West Africa and we will continue to collaborate with our tried and tested value-chain. This project is our first VLCC-tanker conversion. The Armada Ali will be used for conversion.”