ENI in Talks With Bumi Armada for New FPSO

fpso armada perdana
The converted FPSO Armada Perdana, file image courtesy Bumi Armada

A consortium consisting of Malaysian offshore oil services company, Bumi Armada Bhd and Angoil Bumi JV Limitada1 has received a Letter of Intent from ENI S.p.A for the chartering, operation and maintenance of a new floating production, storage and offloading vessel (FPSO) at Block 15/06, East Hub offshore Angola.

The value of the contract is approximately USD $2.9 billion and includes the conversation of the VLCC Armada Ali.

The LOI authorizes Bumi Armada to start engineering and procurement work on the FPSO immediately with a plan for first oil at the end of October 2016.

Bumi Armada CEO Hassan Basma commented on the LOI:

“This LOI is our second large (capex of more than USD1billion) FPSO award in 6 months and underscores our successful migration into the large-project FPSO sector. This is the second time ENI has turned to Bumi Armada for an FPSO in West Africa and we will continue to collaborate with our tried and tested value-chain, as we have done in the past, to successfully deliver this project for our repeat customer. This project is our first VLCC-tanker conversion.”

1ABJL is an Angolan joint venture company of BAOHL, Angoil Exploracao Petrolifera S.A. and Cosmarg Limitada.