Malaysian oilfield services company Bumi Armada and SP Energy secure FPSO contract with ONGC

Malaysian oilfield services company Bumi Armada and its joint venture partner Shapoorji Pallonji Energy (SP Energy) have successfully secured a contract from ONGC for the bareboat charter of the Armada Sterling II FPSO. This significant agreement will see the vessel continue its operations on ONGC’s Cluster 7 field, located approximately 210km off the west coast of Mumbai.

The initial agreement between the parties was finalized earlier this year, with the firm contract only being signed last Friday. The bareboat charter is set to commence on March 8 for a fixed period of three years, with an annual option to extend for up to three additional years. The estimated total value of the fixed three-year firm period amounts to RM451.4m ($106m).

The Armada Sterling II, a vessel originally built in 1998 and converted to an FPSO by Keppel Shipyard in Singapore in 2014, was previously operating under a nine-year charter that was due to expire in March last year. However, the contract was extended by one year.

Additionally, alongside the bareboat charter agreement, Bumi Armada and SP Energy have also signed a second contract with ONGC through their joint venture SPAOGSPL for the operation and maintenance of the Armada Sterling II. This three-year deal includes three annual extension options and is valued at RM127m ($29.8m), with an effective date matching that of the bareboat charter.