RHB Research Institute said in a note that Bumi Armada had been tipped as the frontrunner for the $1bn contract which is expected to be finalised by next month. The contract is for a fixed 10-year term and includes an option to extend for another five years.
The research house said Bumi Armada was reported to have submitted a bid for $1.2bn and is believed to be looking at a conversion job using the 1999-built Rainbow River. Competitors for the bid include a consortium led by Singapore-based Emas Offshore.
Bumi Armada's bid is higher than field operator Husky Energy's $1.18bn budget but the $20m difference is still within the project budget and Husky is entitled to enter into a direct discussion with Bumi Armada, the research house said.
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