Malaysian oilfield services company Bumi Armada and its joint venture partner Shapoorji Pallonji Energy (SP Energy) have won a contract from ONGC for the bareboat charter of the Armada Sterling II FPSO.
The vessel will continue operating on ONGC’s Cluster 7 field about 210km off the west coast of Mumbai.
The initial agreement between the parties was confirmed earlier this year, however, the firm contract was not signed until last Friday.
In turn, the bareboat charter will become effective from March 8, for a fixed period of three years with an annual option to extend for up to three additional years. The fixed three-year firm period has an estimated total value of RM451.4m ($106m).
The 1998-built vessel, converted to an FPSO by Keppel Shipyard in Singapore in 2014, was working under a nine-year charter which was supposed to expire in March last year. However, that contract was extended by one year.
Aside from the charter deal, Bumi Armada and SP Energy signed a second contract with ONGC via its other joint venture, SPAOGSPL, for the operation and maintenance of the Armada Sterling II.
It will also be a three-year deal with three annual extension options. The value of the deal is RM127m ($29.8m). The effective date is identical to the one for the bareboat charter.
