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Bumi Armada book $250m revenue from Armada Madura FPSO project

Bumi Armada through some creative asset shuffling looks set to pocket some $250m in revenue from selling a FPSO to its associate, PT Armada Gema Nusantara (PT AGN).

The company is selling the Armada Madura FPSO to PT AGN, which is a 49-51 joint venture with Mumbai-based construction firm Shapoorji Pallonji, for $500m.Bumi Armada said in a stock market announcement that the holding company for the vessel, Armada Madura EPC Ltd, is currently owned 100% by Bumi Armada unit Bumi Armada Offshore Holdings Ltd and has signed an agreement to deliver the FPSO to PT AGN.

Simultaneously Bumi Armada and Shapoorji Pallonji also agreed to invest in Armada Madura, which will later be 51% owned by the Shapoorji Pallonji group following the latter’s equity subscription.

Bumi Armada expects the Armada Madura FPSO project to cost between $450m to $500m and plans to fund between 20% and 45% of its total financial commitment in the form of equity.Armada Madura EPC bought the tanker for the FPSO project for a deferred purchase consideration of $31m from Bumi Armada unit Bumi Armada Offshore.

Bumi Armada will also gain from the charter contract between PT AGN and Jakarta-based oil and gas firm Husky-CNOOC Madura Ltd, worth $1.2bn for a 10-year period with optional extensions.

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