Malaysian FPSO operator Bumi Armada will probably be receiving an extension of a constitution contract for its Armada Sterling FPSO from India’s ONGC.
Bumi Armada mentioned on Wednesday that its collectively managed entity, Shapoorji Pallonji Bumi Armada Offshore Private Limited (SPBAOPL), had acquired notification from Oil and Natural Gas Corporation (ONGC) of India about its intention to increase the constitution rent of the Armada Sterling FPSO from 20 April 2020.
According to ONGC, approval for the formalisation of the contract extension has been delayed as a result of COVID-19 lockdown in India. In the meantime, ONGC has requested SPBAOPL to course of the case with related authorities for acquiring permits/ extension to make sure continuity of operations on the web site.
Under the unique contract signed on 10 August 2011, Armada Sterling FPSO was chartered by ONGC to function within the ONGC D1 subject positioned 200km off the west coast of Mumbai, India underneath a seven-year agency time constitution, with six annual extension choices.
The authentic seven-year agency constitution expires on 19 April 2020.
SPBAOPL is a 49% much less 1 share: 51% plus 1 share three way partnership between Bumi Armada and Shapoorji Pallonji Oil and Gas Private Limited of India.
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