Malaysia-based offshore services provider Bumi Armada has received a letter of intent (LOI) from eni Angola, a wholly-owned subsidiary of Italian oil and gas company eni, for a contract for the chartering, operation and maintenance of a floating production, storage and offloading vessel (FPSO).
The contract will be awarded to a consortium comprising Bumi Armada subsidiary Bumi Armada Offshore Holdings (BAOHL) and Angoil Bumi JV.
The FPSO will be deployed at Block 15/06, East Hub, located offshore Angola.
The LOI authorises Bumi Armada to start engineering and procurement work on the FPSO immediately. The first production of oil is scheduled for October 2016. The contract, has an indicative value of approximately RM9.5 billion (US$2.9 billion).
"This LOI is our second large capex FPSO award, of more than a billion US dollars, in six months," commented Bumi Armada CEO Hassan Basama. "This is the second time eni has turned to Bumi Armada for an FPSO in West Africa and we will continue to collaborate with our value-chain to successfully deliver this project for a repeat customer.
According to Mr Basama, the project is Bumi's first VLCC-tanker conversion, with the 'Armada Ali' to be used for the conversion. The 15/06 FPSO will be delivered in 31 months and the project will take Bumi Armada's FPSO fleet to eight."
