Malaysian FPSO leasing firm Bumi Armada said Friday that its Armada Kraken FPSO, on a contract with EnQuest in the UK North Sea, was recently shut-in following the failure of critical hydraulic submersible pump (HSP) transformers.
The Kraken FPSO is deployed at the Kraken Field under a bareboat charter contract, and, according to Bumi Armada, the shut-down came after a long period of top quartile production and operational performance of the FPSO.
Bumi Armada said it had, together with field operator EnQuest planned and executed a restart of the FPSO, but the attempted remediation program was unsuccessful, and the Kraken FPSO remains shut-in.
"[Bumi Armada] is working with EnQuest to assess alternative technical solutions, with the aim to return to production, on a phased basis, in the coming weeks. In the meantime, key maintenance activities, originally scheduled for execution within two periods of single train operations in the third quarter of the year, are being executed during the period of shut-in. These activities are intended to negate the requirement for any further planned outages in 2023."
Charter revenue reduced
"The current shut-in and future reduced level of production, means that [bareboat charter] revenue earned by [Bumi Armada] will be reduced. Given the current uncertainties, the financial impact of this incident cannot be reliably estimated at this point, but is expected to be material for Bumi Armada. Further updates will be made from time to time when there are material developments," Bumi Armada said.
During the first four months of 2023, the average net production from the Kraken field was 15,910 barrels of oil equivalent per day.
