India's state-owned oil company Oil and Natural Gas Corporation (ONGC) has given a Notification of Award for for the US$2.1 billion charter and operations of a floating production, storage and offloading (FPSO) vessel.
The FPSO is due to be used on ONGC's NELP Block DWN 98/2 Development Cluster-II field, located off the west coast of Kakinada, India.
The contract with Shapoorji Pallonji Bumi Armada Godavari Private (SPBAG), a 30:70 joint venture between Malaysia-based Bumi Armada and Shapoorji Pallonji Oil & Gas Private Limited (SPOGPL) of India, is for a fixed period of nine years.
ONGC has the option to extend the Contract for up to seven, on an annual basis, and if fully exercised, the extensions would be worth approximately US$655 million, said Bumi Armada.
Commenting on the NOA, Leon Harland, Executive Director and Chief Executive Officer at Bumi Armada, said, “This is a very positive result for Bumi Armada. We are extremely proud that our JV with SPOGPL has been awarded our third FPSO project with ONGC. The JV with SPOGPL has been a very successful partnership, this being our third FPSO project together in India and fourth in total. I would like to personally thank everyone involved in securing this project. This is a positive result for the group and the project will add value to Bumi Armada going forward.”