Bumi Armada Berhad announced that its wholly-owned Russian subsidiary, Bumi Armada Caspian LLC received an engineering procurement, installation and commissioning (EPIC) contract valued at approximately USD 200 million from the Russian oil major, OAO Lukoil (“Lukoil”) through its subsidiary, OOO Lukoil-Nizhnevolzhskneft.
The EPIC contract is for the Filanovsky field development in the Russian sector of the Caspian Sea. Lukoil, a major international vertically- integrated privately owned oil and gas company, is one of the largest Russian E&P groups and it accounts for 2.2% of global crude oil production.
Bumi Armada’s scope of work includes the engineering, procurement of the line pipes and associated appurtenances and installation and pre-commissioning of 9 infield/inter-field lines, for a total length of approximately 90 kms. The work will be carried out using Bumi Armada’s derrick pipelay barge, the Armada Installer. The project is planned to take approximately 32 months with the majority of construction work completed by end 2014.
Mr Hassan Basma, Executive Director/CEO of Bumi Armada Berhad said, “Lukoil is a major player in the Caspian region. It is the largest privately-owned oil and gas company in the world by proven oil reserves. We are delighted with this contract award and appreciate Lukoil’s trust in Bumi Armada and its growing competency and capability in the T&l sector in the Caspian Sea. We are confident that this major award will usher in a lasting period of mutually rewarding relationship. This contract is in addition to the existing service contract for PETRONAS in Turkmenistan and brings the order book to approximately RM 1.8 billion.”
The contract is valued at approximately USD 200 million is expected to contribute positively to the revenue and earnings of Bumi Armada Group for the financial year ending 31 December 2012 and th financial periods thereafter for the duration of the contract.
[mappress] Subsea World News Staff , April 18, 2012; Image: