Bumi Armada has secured a contract from India’s Oil and Natural Gas Corporation Ltd (ONGC) to provide a floating production, storage and offloading (FPSO) vessel.
Namely, the company’s joint venture Shapoorji Pallonji Bumi Armada Godavari Private Limited
(SPBAG) received a Notification of Award for the FPSO, that will operate off the west coast of Kakinada, India.
The charter hire and operations deal is for a fixed period of nine years, valued at around USD 2.1 billion (MYR 8.8 billion). ONGC has the option to extend the contract for up to seven years. On an annual basis and if fully exercised, the extensions would be worth USD 655 million (MYR 2.7 billion).