Bumi Armada JV closes $948m project financing for India’s largest FPSO

Malaysian oilfield services company Bumi Armada and its joint venture partner Shapoorji Pallonji Energy (SP Energy) have closed a $948m project financing facility for the Armada Sterling V floating production, storage and offloading vessel deployed on the east coast of Kakinada, offshore India, for Oil and Natural Gas Corporation (ONGC).

Bumi said in a Bursa Malaysia filing that its associated company, Armada 98/2 (A98/2), used the proceeds to fully repay its $930m bridge loan.

A98/2, a venture with SP Energy, owns the FPSO, which is leased to sister company SP Bumi Armada Godavari Private (SPBAG) which secured a $2.1bn charter deal with ONGC in 2019.

India’s largest FPSO, converted from the very large crude carrier (VLCC) Ariake by Singapore’s Seatrium, formerly known as Sembcorp Marine, has been designed for super-cyclones off eastern India and has the largest submersible turret system. The unit was set to start production in the first quarter of this year but was delayed due to damage to the field’s subsea infrastructure.

Bumi, which has a 30% stake in the joint venture, said that the FPSO “is awaiting hydrocarbons from ONGC to conduct the necessary acceptance tests to achieve final acceptance”.