Malaysia's Bumi Armada JV Wins ONGC FPSO Contract

Malaysia-based service provider Bumi Armada joint-venture has been awarded a nine-year $2.1bn contract by India's ONGC to provide a floating production, storage and offloading (FPSO) vessel, it said May 6.

Shapoorji Pallonji Bumi Armada Godavari Private, is a 30:70 joint venture between Bumi Armada and India’s Shapoorji Pallonji Oil & Gas Private (SPOGL). The FPSO will operate in the ONGC NELP Block DWN 98/2 Development Cluster-II field, off the west coast of Kakinada, India.

“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,” said Leon Harland, CEO Bumi Armada.

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 about $655mn, Bumi said.

In May 2018, ONGC chairman Shashi Shanker said that gas production from NELP block KG-DWN-98/2 was expected to start from 2019.