Malaysia’s Bumi Armada has announced that its Indian joint venture company Shapoorji Pallonji Bumi Armada Godavari (SPBAG) has been awarded a contract by India’s state-owned oil company Oil and Natural Gas Corporation Limited (ONGC).
The contract is for the charter and operations of an FPSO for a period of nine years, to be used at the ONGC NELP Block DWN 98/2 Development Cluster-II field, off Kakinada. The contract is worth $2.1bn, and includes an option to extend for up to seven additional years via a series of one-year options. The options are worth up to a further $655m.
Leon Harland, executive director and chief executive officer of 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.”
Bumi Armada has a 70% stake in SPBAG, while Shapoorji Pallonji Oil & Gas Private Limited of India owns the other 70%.
