Bumi Armada lands Madura prize

Development award: Husky Energy chief Asim Ghosh

Canada’s Husky Energy has chosen a consortium led by Malaysia’s Bumi Armada to supply a floating production, storage and offloading vessel for the Madura BD field off Indonesia.

The Calgary independent signed a letter of intent for the floater with Bumi Armada Offshore and PT Armada Gema Nusantara, a joint venture of Bumi Armada and the PT Gema Marine Services arm of Indonesia’s Gema Group.

Bumi Armada chief executive Hassan Basma credited the Malaysian contractor’s track record of delivering "on time, within budget, safe and reliable FPSOs" for the winning bid.

The consortium will supply an FPSO for a fixed period of ten years for $1.18 billion with with options of five annual extensions worth a total of $147 million if full exercised.

As Upstream reported last year, Bumi Armada had been tipped to land the floater contract for the field, where China’s Offshore Oil Engineering Company and local companies Pal Indonesia and Supasi Wydia Engineering won the turnkey wellhead platform and pipelines contracts.

The Maudra Strait production sharing contract field is expected on stream in 2016, behind earlier expectations.

Husky Energy operates the PSC on a 40% stake with CNOOC also on 40% and Samudra Energy on 20%.

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