A joint venture between Malaysian FPSO operator Bumi Armada and Shapoorji Pallonji Oil & Gas Pte Ltd (SPOGPL) has been awarded a contract for the provision of FPSO Armada Sterling to India’s ONGC.
Bumi Armada said back in April 2020 that it would be receiving an extension of a charter contract for its Armada Sterling FPSO from ONGC.
However, the approval for the formalisation of the contract extension was delayed due to the COVID-19 lockdown in India.
Under the original contract signed on 10 August 2011, Armada Sterling FPSO was chartered by ONGC to operate in the ONGC D1 field located 200km off the west coast of Mumbai under a seven-year firm time charter, with six annual extension options.
The original seven-year firm charter expired on 19 April 2020.
In an update on Friday, Bumi Armada said that its joint-venture company Armada D1 Pte Ltd (Singapore) (AD1) has received a notification of award from ONGC for the bareboat charter lease (BBC Contract) of the Armada Sterling FPSO to be operated in the ONGC D1 field located 200km off the west coast of Mumbai, India.
The BBC contract is for a fixed period of 10 years with an annual option to extend the BBC contract for up to 5 additional years.
The fixed 10-year firm BBC contract has an estimated total value of $370 million.
The contract will be effective from 25 September 2020.
AD1 is 51%:49% owned by Shapoorji Pallonji Oil & Gas Pte Ltd (SPOGPL) and Bumi Armada.
ONGC is India’s state-owned oil company listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE).