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Bumi Armada to reallocate funds to FPSO, floating gas businesses

Bumi Armada to reallocate funds to FPSO, floating gas businesses
Going all in on the FPSO segment, Bumi Armada has raised the allocation of proceeds of its MYR1.98bn ($525.4m) rights issue, raising the allocation for its FPSO and the new floating gas solutions (FGS) business units, the offshore oilfield services provider said.

The allocation to the FPSO and FGS units had been boosted from MYR1.4bn to MYR1.52bil, while the MYR200m originally allocated for the transport and installation business unit has been reduced to MYR80m.Following the recent dissolution of the oilfield services business unit, the MYR80m previously allocated to it has been reallocated to the offshore support vessel (OSV) business unit.

“The reallocation of the rights proceeds reflects the Bumi Armada group’s overall strategy of focusing on its core FPSO business and enhancing its OSV and FGS capabilities. The board believes this is an appropriate strategy to weather the current challenges in the offshore oil and gas sector, brought about by the decline in oil prices since the second half of 2014,” said Bumi Armada.