Seatrade Maritime is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Bumi Armada seeking $284m from Woodside in FPSO contract termination case

Bumi Armada seeking $284m from Woodside in FPSO contract termination case
Bumi Armada has taken action to seek $283.5m in claims from Woodside Energy Julimar for the termination of a contract for the charter of the Armada Claire floating production, storage and offloading (FPSO) unit.

The oil and gas player said in a stock market filing that the amount comprised $275.8m for the amount of the termination payment it is entitled to had the contract not been breached, as well as $7.7m for works done and materials supplied.

Bumi Armada had last month received a notice of termination of its Armada Claire FPSO contract worth about MYR1.46bn ($374m).

Following the termination, Bumi Armada said that it would take legal action against Woodside and said that it reserved the right to claim damages against the company for its breach of the contract.

On 14 March, Bumi Armada’s subsidiary, Armada Balnaves, filed a writ of summons in the Supreme Court of Western Australia on Woodside’s contract termination for the Armada Claire FPSO and this week it followed up by filing a claim in the court.

The Armada Claire FPSO has been operating for Woodside in the company’s Balnaves field in offshore Australia since 2014.

The vessel was in its second year of operation into this contract and had another two years to go, as it would have ended in August 2018. Other reports have said that the Armada Claire FPSO contract was terminated because the field it was working at was no longer feasible.

“Bumi Armada is of the view that there are reasonable grounds to expect a favourable outcome in respect of Armada Balnaves’ primary claim against Woodside on the repudiation of the contract.

“Notwithstanding the foregoing, the award of damages in the event of a favourable outcome is subject to final determination by the court,” Bumi Armada said.

Hide comments
account-default-image

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish

Category-Promo-ST1088TMSR Web Banners-05.png