Malaysia-based international offshore energy facilities and services provider Bumi Armada Berhad announced that its joint-venture (“JV”) company Shapoorji Pallonji Bumi Armada Godavari Private Limited (“SPBAG”) has received a Notification of Award (“NOA”) from India's state-owned oil company Oil and Natural Gas Corporation Limited ("ONGC") for the charter hire and operations of a Floating Production, Storage and Offloading Vessel ("FPSO") (collectively referred to as “the Contract”).

SPBAG is a 30:70 joint venture between Bumi Armada and Shapoorji Pallonji Oil & Gas Private Limited of India (“SPOGPL”).

The FPSO will operate in the ONGC NELP Block DWN 98/2 Development Cluster-II field, located off the west coast of Kakinada, India. The Contract is for a fixed period of nine (9) years, valued at approximately USD2.1 billion (approximately RM8.8 billion). ONGC has the option to extend the Contract for up to seven (7) years, on an annual basis and if fully exercised, the extensions would be worth approximately USD655 million (approximately RM2.7 billion).

Commenting on the NOA, Mr. Leon Harland, Executive Director and Chief Executive Officer, said, “This is a very positive result for Bumi Armada. We are extremely proud that our JV with SPOGPL has been awarded our third FPSO project with ONGC.

The JV with SPOGPL has been a very successful partnership, this being our third FPSO project together in India and fourth in total. I would like to personally thank everyone involved in securing this project. This is a positive result for the Group and the project will add value to Bumi Armada going forward.”

About Bumi Armada

Bumi Armada Berhad is a Malaysia-based international offshore energy facilities and services provider with a presence in over 10 countries spread across three continents, supported by over 1,500 people from over 38 nationalities.
Bumi Armada Berhad provides offshore services via two business units – Floating Production and Operations (“FPO”) and Offshore Marine Services (“OMS”) (encompassing the Offshore Support Vessels (“OSV”) and the Subsea Construction (“SC”) services).

About ONGC

ONGC is a major integrated National Oil and Gas Company of India and is India’s largest producer of crude oil and natural gas , contributing around 70 per cent of Indian domestic production. During the financial year ended 31st March, 2017, ONGC Group had produced 61.60 MMT of oil and oil equivalent gas (MMTOE) (approx. 1.23 MMboe per day); the Consolidated Gross Turnover was INR 1,421 billion (US$ 21 billion) during FY’17 and total consolidated oil and gas reserves were 1,818 MMTOE as on 31st March 2017.