April 16, 2012

Bumi Armada was Awarded US$200m Russian Deals

Bumi Armada Bhd, an offshore oilfield services company, was awarded a US$200 million (RM600 million) engineering, procurement, installation and commissioning (EPIC) contracts from Russia's oil major OAO Lukoil (Lukoil).

The contract is for the Filanovsky field development of the Caspian Sea, Bumi Armada said yesterday. The company, through its subsidiary Bumi Armada Caspian, signed the EPIC contract with Lukoil's subsidiary OOO Lukoil-Nizhnevolzhskneft recently. Lukoil is one of the largest Russian exploration and production groups and it accounts for 2.2 per cent of global crude oil production.

Bumi Armada said the scope of work includes engineering, procurement of the line pipes and installation, pre-commissioning of nine infield or inter-field lines, for a total of about 90 kilometres.

"The work will be carried out using Bumi Armada's derrick pipelay barge, the Armada installer. The project is planned to take about 32 months with the majority of construction work completed by end 2014," the company added.

An online news report said the contract involves laying an oil and gas pipeline across the seafloor linking the Filanovsky deposit and Korchagin deposits.

"They are to be protected with bracelet anodes, three-layer insulation of extruded polypropylene and cement ballast coverage," the report said.

Commenting on the deal, Bumi Armada chief executive officer Hassan Basma said he is confident that the contract will usher in a lasting period of mutually rewarding relationship.

"This contract is in addition to the existing service contract for Petronas in Turkmenistan and brings the order book to about RM1.8 billion," he said.

Bumi Armada currently serves clients in over 10 countries in Asia, Africa and Latin America. With over 40 offshore support vessels (OSVs) and three floating, production, storage and offloading (FPSO) vessels in operation, a derrick pipe-lay barge and a SURF vessel, Bumi Armada is the largest OSV owner-operator in Malaysia and the sixth largest FPSO operator in the world.

Source : Business Times (17/04/12)

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