Malaysia-based international offshore oilfield services provider, Bumi Armada Berhad has received a letter of intent (LOI) from Eni Angola, a wholly-owned subsidiary of Eni, for a contract for the chartering, operation, and maintenance of an FPSO to a consortium of Bumi Armada Offshore and Angoil Bumi JV.
The deployment would be at block 15/06, East Hub, offshore Angola. The LOI authorizes Bumi Armada to start engineering and procurement work on the FPSO immediately, with a contract effective as of 28 March 2014.
First oil is scheduled for end October 2016. The contract has an indicative value of about US$2.9 billion (about RM9.5 billion).
Chief Executive Officer/Executive Director of Bumi Armada Hassan Basma said: “This LOI is our second large (capex of more than $1billion) 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.
"This project is our first VLCC-tanker conversion. The Armada Ali will be used for conversion. The 15/06 FPSO will be delivered in 31 months and this project will take Bumi Armada’s FPSO fleet to eight.”