ASEAN KEY DESTINATIONS
Malaysian firm wins floating vessel deal
Offshore oil field services contractor Bumi Armada Bhd has secured a RM1.46 billion (US$456.7 million) deal to supply and operate a floating, production, storage and off-loading vessel (FSPO) for Apache Energy Ltd at Block WA-49-L of the Balnaves oil field in northwest Australia.
The contract from the Australian oil and gas producer, which is a subsidiary of US-based Apache Corp, is for an initial four-year fixed term, with an option for a four-year annual extension.
“The contract will increase the company’s order backlog to more than RM7bil,” said Bumi Armada executive director and chief executive officer Hassan Basma.
He added that the project was expected to begin contributing to the company’s revenue and earnings from the current financial year ending Dec 31.
Work has already begun with the refurbishment of an existing FPSO for the project. It is targeted for delivery in the first quarter of 2014 when Apache is expected to begin first production in the field that it discovered two years ago.
According to the International Maritime Associates, an estimated 120 FPSO will be needed over the next five years. This represents an increase of 77% from 2011 to 2015.
UBS in its recent report said it believed Bumi Armada was well positioned to tap this growth. It expected the company to increase its FPSO contracts from five by the end of this year to eight by 2013.
Given the still strong crude oil prices, analysts believe Bumi Armada is set to benefit from sustained global oil and gas capital expenditure.
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