Bumi Armada subsidiary signs $1.4B Kraken contract

Bumi Armada Berhad

Armada Kraken Pte. Ltd., a wholly owned subsidiary of Malaysia-based international offshore oilfield services provider Bumi Armada Berhad, has signed a bareboat charter contract with EnQuest Heather Ltd., EnQuest ENS Ltd., First Oil and Gas Ltd., Nautical Petroleum Ltd., and Nautical Petroleum AG as field partners, led by EnQuest Heather Ltd. as field operator, for a floating production, storage, and offloading vessel (FPSO) to be deployed at the Kraken field located in the UK sector of the North Sea.

Simultaneously, Bumi Armada UK Ltd., another wholly owned subsidiary of Bumi Armada, and EnQuest Heather Ltd. also signed a reimbursable contract for the operations and maintenance (O&M) of the Kraken FPSO.

Both contracts run simultaneously for a fixed period of eight years, valued at $1.4 billion (equivalent to approximately RM 4.6 billion), with options for 17 annual extensions with a significant upside when the options are fully exercised.

Bumi Armada will be using a recently built ice-class tanker for this FPSO conversion. The FPSO will have a storage capacity of 600,000 barrels. It will be moored by a buoy turret mooring system, with a fluid transfer system designed to 390 bars pressure. A total of 16 risers will be connected to the buoy turret mooring; the turret will be one of the largest of its kind in the world.

 

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