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Bumi Armada girds up for major projects with fundraising exercise

Bumi Armada girds up for major projects with fundraising exercise
Bumi Armada will be the second Malaysia-based offshore services provider to plan a major fundraising exercise this year as it anticipates a capital expenditure (capex) of $2bn for its activities in the floating production, storage and offloading (FPSO) segment for this year.

Local reports quoted ceo Hassan Basma as saying the group was planning to raise close to $1.5bn via bonds and a rights issue by the middle of this year. “We are aiming to tap the debt market as early as the second quarter of this year," Hassan said.

“We have big plans for Bumi Armada,” he added. Fellow Malaysian FPSO player Yinson Holdings yesterday announced plans for a major fundraising exercise as well as it digests its acquisition of Fred Olsen Production.

Speaking on the sidelines of the signing ceremony for the Kraken Field project between Bumi Armada and EnQuest, Hassan added that Bumi Armada is actively bidding for 10 FPSO contracts at the moment.

The Kraken contract in the UK sector of the North Sea is the group’s seventh FPSO contract after two in India, two in Nigeria and one each in Vietnam and Australia, and with an investment value of $1bn the largest FPSO contract won by the group so far.

Bumi Armada is also seen to be in the lead for a contract to supply Eni with a FPSO vessel for its East Hub project in Block 15/06, offshore Angola. Hassan said this contract is valued at about $1.5bn in capex. As such, the upcoming fundraising would seem prudent should they clinch the deal.

"We are optimistic on the outcome and target to make the announcement next month," he said.