Bumi Armada JV awarded $2.1bn FPSO contract by ONGC

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%.

Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.
Back to top button