Bumi Armada Loses Woodside FPSO Case

January 24, 2020

Armada Claire FPSO / Image by Marty Wenham / Marine Traffic
Armada Claire FPSO / Image by Marty Wenham / Marine Traffic

Malaysian FPSO specialist Bumi Armada's claim against Australia's oil firm Woodside for a 2016 FPSO contract termination has been dismissed in court.

Woodside in 2016 terminated the contract for the Armada Claire FPSO unit that was operating at the Balnaves Field, offshore north-western Australia since August 2014.

Bumi Armada, via its Armada Balnaves subsidiary, deemed the termination unlawful, and then took legal action against Woodside, seeking a $283.5 million compensation.

According to a statement by Woodside, issued on Friday, January 24, 2020, the Supreme Court of Western Australia has now ruled in favor of Woodside.

Woodside said: "The trial was held in February-March 2019. In a judgment issued this afternoon, the Supreme Court has found in favor of Woodside and dismissed Bumi’s claim."

Worth noting, Bumi Armada had originally signed the Armada Claire FPSO deal with Apache in 2011. Apache then in 2015 sold its Australia operations to Woodside which eventually terminated the FPSO contract.

The 240-meter-long Armada Claire converted into FPSO by Keppel in 2013, has been listed as „available for re-deployment“ on Bumi Armada's website. According to available info, the FPSO with 30,000 bpd production capacity has been cold-stacked in Batam, Indonesia.



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