Bumi Armada suspends FPSO contract

KUALA LUMPUR, June 21, 2017 – Bumi Armada will be suspending its contract with Erin Energy Corporation’s subsidiary in Nigeria over delays in payment, the offshore player said in Wednesday.

Bumi Armada is engaged with Erin Petroleum Nigeria under a bare-boat charter and operations and maintenance contracts for the floating production, storage and offloading vessel Armada Perdana.

According to the Malaysian entity, Wednesday’s decision was prompted by “longstanding delays” with regard to the bare-boat charter agreement and due to “irregular payments” related to its operations and maintenance contract.

“This situation has been brought about by Erin’s refusal to provide us with a clear structure of how they intend to comply with the contractual agreements as well as repay the amounts owing to Bumi Armada, despite our repeated attempts to resolve the situation amicably,” Bumi Armada CEO Leon Harland said in comments on the action.

The 40,000-bopd-capacity Armada Perdana serves the Oyo field, located in oil mining licence 120. The field began producing in 2009.

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