A three way partnership between Malaysian FPSO operator Bumi Armada and Shapoorji Pallonji Oil & Gas Pte Ltd (SPOGPL) has been awarded a contract for the supply of FPSO Armada Sterling to India’s ONGC.
Bumi Armada mentioned again in April 2020 that it will be receiving an extension of a constitution contract for its Armada Sterling FPSO from ONGC.
However, the approval for the formalisation of the contract extension was delayed as a result of COVID-19 lockdown in India.
Under the unique contract signed on 10 August 2011, Armada Sterling FPSO was chartered by ONGC to function within the ONGC D1 area situated 200km off the west coast of Mumbai underneath a seven-year agency time constitution, with six annual extension choices.
The unique seven-year agency constitution expired on 19 April 2020.
In an replace on Friday, Bumi Armada mentioned that its joint-venture firm Armada D1 Pte Ltd (Singapore) (AD1) has obtained a notification of award from ONGC for the bareboat constitution lease (BBC Contract) of the Armada Sterling FPSO to be operated within the ONGC D1 area situated 200km off the west coast of Mumbai, India.
The BBC contract is for a hard and fast interval of 10 years with an annual possibility to increase the BBC contract for as much as 5 extra years.
The fastened 10-year agency BBC contract has an estimated complete worth of $370 million.
The contract might be efficient 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 firm listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE).
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