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Bumi Armada seeking $284m from Woodside in FPSO contract termination case

Bumi Armada has taken action to seek $283.5m in claims from Woodside Energy Julimar for the termination of a contract for the charter of the Armada Claire floating production, storage and offloading (FPSO) unit.

Vincent Wee, Hong Kong and South East Asia Correspondent

April 23, 2016

1 Min Read
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The oil and gas player said in a stock market filing that the amount comprised $275.8m for the amount of the termination payment it is entitled to had the contract not been breached, as well as $7.7m for works done and materials supplied.

Bumi Armada had last month received a notice of termination of its Armada Claire FPSO contract worth about MYR1.46bn ($374m).

Following the termination, Bumi Armada said that it would take legal action against Woodside and said that it reserved the right to claim damages against the company for its breach of the contract.

On 14 March, Bumi Armada’s subsidiary, Armada Balnaves, filed a writ of summons in the Supreme Court of Western Australia on Woodside’s contract termination for the Armada Claire FPSO and this week it followed up by filing a claim in the court.

The Armada Claire FPSO has been operating for Woodside in the company’s Balnaves field in offshore Australia since 2014.

The vessel was in its second year of operation into this contract and had another two years to go, as it would have ended in August 2018. Other reports have said that the Armada Claire FPSO contract was terminated because the field it was working at was no longer feasible.

“Bumi Armada is of the view that there are reasonable grounds to expect a favourable outcome in respect of Armada Balnaves’ primary claim against Woodside on the repudiation of the contract.

“Notwithstanding the foregoing, the award of damages in the event of a favourable outcome is subject to final determination by the court,” Bumi Armada said.

About the Author

Vincent Wee

Hong Kong and South East Asia Correspondent

Vincent Wee is Seatrade's Hong Kong correspondent covering Hong Kong and South China while also making use of his Malay language skills to cover the Malaysia and Indonesia markets. He has gained a keen insight and extensive knowledge of the offshore oil and gas markets gleaned while covering major rig builders and offshore supply vessel providers.

Vincent has been a journalist for over 15 years, spending the bulk of his career with Singapore's biggest business daily the Business Times, and covering shipping and logistics since 2007. Prior to that he spent several years working for Brunei's main English language daily as well as various other trade publications.

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