Malaysia-based international offshore oilfield services company, Bumi Armada Berhad announced that its wholly-owned Russian subsidiary, Bumi Armada Caspian LLC signed a supplementary agreement worth RM567.6 million (USD178.5 million) with OOO LUKOIL-Nizhnevolzhskneft (“Lukoil”) for EPIC (engineering, procurement, installation and pre-commissioning) work in the Filanovsky and Korchagin field in the Russian sector of the Caspian Sea.
This contract increases Bumi Armada’s Transport and Installation order backlog to over RM2 billion (USD629.4 million).
The scope of work includes the engineering, procurement of the line pipes and associated appurtenances and installation and precommissioning of 6 infield/inter-field lines, for a total length of approximately 40 kms. The work will be carried out using Bumi Armada’s derrick pipelay barge, the Armada Installer. The project will see the majority of construction work carried out and completed in 2015.
Mr Hassan Basma, CEO/Executive Director of Bumi Armada Berhad said, “Lukoil is a repeat customer who is a major player in the Caspian region and the fourth largest privately-owned oil and gas company in the world by proven oil reserves. We are buoyed by this supplementary agreement which underscores their confidence in our ability to deliver and the good working relationship we have developed. This further consolidates our position as an EPIC provider in this region.”
The contract, valued at approximately RM567.6 million (USD178.5 million), is expected to contribute positively to the revenue and earnings of the Bumi Armada Group for the financial year ending 31 December 2013 and the financial periods thereafter for the duration of the supplementary agreement to the existing contract.
Mr Basma added that this contract comes on the back of other major successes such as the projects for Momentum Engineering with the Armada Installer and for an international oil company with its SURF vessel, the Armada Hawk. The company is currently bidding for similar projects from companies like Dragon Oil and Petrobras.
OOO LUKOIL-Nizhnevolzhskneft is a subsidiary of OAO Lukoil, a major international vertically-integrated privately owned oil and gas company, and one the largest Russian oil business groups with sales of over USD133 billion and net income of over USD10 billion, and it accounts for 2.2% of global crude oil production.
[mappress] Press Release, July 08, 2013; Image: Bumi Armada