Malaysia’s Bumi Armada Secures O&M Contract for FPSO Operations in India
Malaysia’s Bumi Armada has finalized arrangements for the operation and maintenance (O&M) of a floating production storage and offloading (FPSO) vessel working for Oil and Natural Gas Corporation (ONGC) off the coast of India. The joint-venture company with Shapoorji Pallonji Energy Private, Shapoorji Pallonji Armada Oil & Gas Services Pte Ltd (SPAOGSPL), received a notification of award from ONGC for the O&M of the FPSO Armada Sterling II, effective from March 8, 2025. The terms and conditions of the award have been formalized into an O&M contract signed by SPAOGSPL and ONGC.
The O&M deal is valid for a fixed period of three years with an annual option to extend the charter for up to three additional years. The estimated total value of the fixed three-year firm O&M period is INR 2.5 billion (approximately $29.2 million).
Additionally, Bumi Armada’s joint-venture company, Armada C7 (AC7), has secured a bareboat charter lease for the same FPSO from ONGC. The three-year charter, effective from March 8, 2025, comes with an annual option to extend for up to three additional years. The estimated total value of the fixed three-year firm period under the bareboat charter is $101.9 million (approximately RM 451.4 million).
The FPSO Armada Sterling II, converted in 2014, produces 30,000 barrels of oil per day and yields 1.8 million cubic meters of natural gas. ONGC initially hired the FPSO in March 2013 to operate in its Cluster-7 fields about 210 kilometers off the west coast of Mumbai under a nine-year firm charter, with seven annual extension options.
ONGC’s Cluster-7 includes the B-192, B-45, and WO-24 marginal fields in Bombay High, with water depths ranging from 80-88 meters. While B-192 is an oil and gas field, B-45 and WO-24 are gas fields.
Furthermore, Bumi Armada is currently undergoing due diligence with MISC under a memorandum of understanding (MoU) aimed at exploring a potential merger with MISC’s offshore business through an all-share transaction.