KUALA LUMPUR (March 7): Bumi Armada Bhd (KL:ARMADA) said its joint-venture companies have secured two contracts worth a total of RM581.1 million from India’s state-owned Oil and Natural Gas Corporation Ltd (ONGC).

The group said Shapoorji Pallonji Armada Oil & Gas Services Pte Ltd (SPAOGSPL) won the contract for the operation and maintenance of the Armada Sterling II floating production, storage and offloading (FPSO) vessel at ONGC’s oilfield located off the west coast of Mumbai. The contract is valued at 2.5 billion rupees (RM127 million).

SPAOGSPL is a 60:40 joint venture between Shapoorji Pallonji Energy Pvt Ltd and Bumi Armada (Singapore) Pte Ltd, a wholly-owned subsidiary of Bumi Armada, the group said in a filing with Bursa Malaysia.

The second contract, valued at US$101.9 million (RM451.4 million), was awarded to Armada C7 Pte Ltd for the bareboat charter lease of the Armada Sterling II FPSO, according to a separate filing.

Armada C7 is a 51:49 joint venture between Shapoorji Pallonji Energy and Bumi Armada Offshore Holdings Ltd, another wholly-owned subsidiary of Bumi Armada.
 
Both contracts will take effect from March 8 with a three-year fixed term and an option for annual extensions of up to three additional years. They are expected to positively contribute to Bumi Armada’s future earnings, the group said.
 
Shares of Bumi Armada closed unchanged at 54 sen on Friday, giving the group a market capitalisation of RM3.2 billion.