The company's UK unit Bumi Armada UK signed a Letter of Interim Agreement (LOIA) with EnQuest ENS Limited, First Oil and Gas Limited, Nautical for the award of a contract for the supply and operations of a floating production, storage and offloading vessel (FPSO) to Bumi Armada UK to operate in the massive Kraken field (UKCS Block 9/02b) in the UK sector of the North Sea.
The LOIA is intended to allow Bumi Armada to proceed with critical activities and the procurement of long lead items, ahead of the final award, which is expected to be signed before 30 November 2013, Bumi Armada said in a stock market announcement.
First oil is anticipated in 2016/2017.
“The North Sea contains western Europe's largest oil and natural gas reserves and is one of the world's key non-OPEC producing regions. The North Sea contains significant reserves that have yet to be developed. We expect that the heavy oil production technology applied in the Kraken FPSO will unlock similar heavy oil reserves in the North Sea and other parts of the world. Our first time entry into the North Sea ushers in a new era in our relentless stride to join other similar contractors competing on their strength in execution competency and value add services," said ceo and executive director Hassan Basma.
The FPSO will have a storage capacity of 600,000 cu m. The FPSO will be moored by a buoy turret mooring system.
“The Kraken FPSO, which takes our fleet of FPSOs to seven, places Bumi Armada firmly in the top league of FPSO players. This is a testimony to our track record and focus on safety and quality built up over the years," added Hassan.
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