Kuala Lumpur-based floater player Bumi Armada has struck a $40-million deal to sell its Armada Perdana floating production, storage and offloading vessel to Nigerian company Century Energy Services.

The FPSO has been out of contract in Nigeria since its previous charterer, Erin Petroleum, and its parent company Erin Energy Corporation, filed for bankruptcy under Chapter 11 of the US Bankruptcy Code in April 2018.

The vessel had been deployed on the Oyo field.

Century Energy plans to redeploy the FPSO to another field in Nigeria.

The purchase price comprises a deposit of $5.5 million to be paid by Century Energy to Bumi’s subsidiary Armada Oyo.

Of this amount, $4.5 million of this has already been paid with the remaining $1 million payable before the end of 2019.

A further $11.6 million will be used to settle amounts owing.

Bumi said $5 million on or before the earlier of six months after the vessel is delivered to Century Energy or when oil is first produced from the field to which the vessel is redeployed.

The remaining balance of $17.9 million will be paid within two years of first oil.

To secure the unpaid portion of the purchase price, Bumi will hold a mortgage over the Armada Perdana.

Once the sale has been concluded, Bumi said it will be absolved from its demobilisation obligations.

The gain to be recognised in the financial statements for the financial year ending 31 December 2019 will be about $5 million.

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Bumi Armada sells FPSO to Century Energy Services