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Overview
Financial Highlight
Market BuzzHeadlinesBusiness Background Bumi Armada Berhad is a Malaysia-based international offshore oilfield services provider. The Company is engaged in the provision of marine transportation, floating production storage and offloading system (FPSO) operations, vessel construction, and engineering and maintenance services to offshore oil and gas (O&G) companies. It provides services through its ownership and operation of marine assets across the O&G value chain; from exploration through to field development and construction, production and operations and eventually, decommissioning. It serves clients in over 10 countries across Asia, Africa and Latin America. Bumi Armada provides these offshore services via four main business units and two support units. The main business units are FPSO, Offshore Support Vessels (OSV), Transport & Installation (T&I) and Oilfield Services (OFS). On October 4, 2011, the Company acquired Bumi Armada Russia Holdings Limited .
  sheep BUMI ARMADA BERHAD - NOTICES OF SUSPENSION ISSUED TO ERIN PETROLEUM NIGERIA LIMITED IN RELATION TO THE OPERATIONS OF FPSO ARMADA PERDANA BUMI ARMADA BERHAD Type Announcement Subject OTHERS Description BUMI ARMADA BERHAD - NOTICES OF SUSPENSION ISSUED TO ERIN PETROLEUM NIGERIA LIMITED IN RELATION TO THE OPERATIONS OF FPSO ARMADA PERDANA Bumi Armada Berhad’s ("Bumi Armada" or the "Company") wholly-owned subsidiaries, Bumi Armada (Singapore) Pte Ltd (“BASPL”) and Armada Oyo Limited (“AOL”), have each issued a notice of suspension (“Notice of Suspension”) to Erin Petroleum Nigeria Limited (“EPNL”), a subsidiary of Erin Energy Corporation, to suspend the provision of services by BASPL and AOL under the Operational and Maintenance Services Contract (“O&M Contract”) and Bareboat Charterparty Contract (“Charterparty”) respectively (“Contracts”). The suspension of operations is due to longstanding delays in the Charterparty payments due to AOL, as well as irregular payments on the O&M contract to BASPL. Details of the Contracts (i) O&M Contract On 17 February 2014 BASPL entered into the O&M Contract with Oceanic Consultants Nigeria Limited (“Oceanic”) for the provision of operation and maintenance services for the FPSO Armada Perdana (“FPSO”) deployed at the Oyo Field Development located offshore of Nigeria. On 25 March 2014, Oceanic, novated its rights and obligations under the O&M Contract to EPNL. The O&M Contract was further amended by the letter agreement dated 30 June 2015 between BASPL, EPNL and AOL. (ii) Charterparty On 17 February 2014, AOL entered into the Charterparty with Oceanic for the charter of the FPSO by AOL to Oceanic. On 25 March 2014, Oceanic novated its rights and obligations under the Charterparty to EPNL. The Charterparty was further amended by the letter agreement dated 30 June 2015 between BASPL, EPNL and AOL. Details of the Notices of Suspension BASPL and AOL had, on 16 May 2017, after repeated attempts to arrive at a mutually acceptable solution to both parties, issued Notices of Overdue Payment and Letters of Demand (“LOD”) to EPNL in which BASPL and AOL had demanded immediate payment of undisputed outstanding sum. To date, EPNL has not responded to the notices and LOD. The suspension does not relieve the EPNL of any of its own obligations under the Contracts. Operational Impact (i) O&M Contract BASPL is suspending the performance of its obligations under the O&M Contract with effect from 12.00 p.m. Lagos time (5.00 p.m. Malaysia time) on 21 June 2017 except for the critical maintenance and other activities to mitigate occupational health and safety and environment risk. (ii) Charterparty AOL is suspending the performance of its obligations under the Charterparty with effect from 12.00 p.m. Lagos time (5.00 p.m. Malaysia time) on 21 June 2017. Financial Impact The outstanding sum claimed by BASPL and AOL has been fully provided for in the Bumi Armada Group’s financial statements. The suspension of operations is not expected to have significant impact on the full year 2017 financial results of the Company, the extent of which cannot be conclusively ascertained at this juncture. Next steps The Group continues to evaluate all its available options on this matter including the possibility of working with EPNL to arrive at an amicable solution. In the event that an amicable solution between the parties cannot be achieved, Bumi Armada will proceed with the next steps to fully enforce its rights against EPNL based on advice from external counsel. Bumi Armada will continue to provide updates from time to time on any further material development on this matter. This announcement is dated 21 June 2017. http://www.bursamalaysia.com/market/listed-companies/company-announcements/5467585 21/06/2017 20:36 Ibi_chan http://www.thestar.com.my/business/business-news/2017/06/21/bumi-armada-suspends-nigerian-operations-of-fpso-armada-perdana/ Back to 50cents? 21/06/2017 23:44 Muhammad Hanafi why worry, this is the tactic to 'force' the charterer to paid. The same situation when you rent your house and the tenant did not paid the rent, hence you seal the house and the tenant will be force to pay you. Erin petroleum wanted to increase production and drilling operation in OYO field. so they need the FPSO to process and stored the oil. Erin petroleum commitment is still intact. they just short of cash for now.. 22/06/2017 03:04 Muhammad Hanafi also remember armada kraken will hit first oil by end of this month. the fundamental of BAB is still intact 22/06/2017 03:05 Alex Chan Read cimb report. You will understand more. Provisions was made. Fundamental value has excluded this contract 22/06/2017 03:25 cooling CANCELATION OF 3 BILLION CONTRACT http://www.thestar.com.my/business/business-news/2017/06/21/bumi-armada-suspends-nigerian-operations-of-fpso-armada-perdana/ 22/06/2017 06:54 Lukesharewalker Be greedy when others fearful. Earnings has already been excluded from 1Q report.....no worries 22/06/2017 09:23 nikicheong How wow! Haha. Now I got to think about topping up Armada too...So many things on sale in recent days... 22/06/2017 09:29 paktua73 hehe old man gila man win bet 100k unit at 0.675 old man bodo one want throw money here old man always silly one 22/06/2017 09:33 nikicheong I mean what has changed guys? This is insane! So sad bullets will arrive tmrw, will need to wait for one day. 22/06/2017 09:35 nikicheong Guys, wasn't Bumi Armada already not recognizing profit from their Armada Perdana? In all the research reports you read, like from CIMB, it already says they are not taking into account and possible future profits from Perdana. This issue has been since 2015. Armada only collect Ops/Maintanence payments will allows them to breakeven, no more. Anyway, these are glorious days to buy. Sadly today I do not have the means to enter. Just one day later...and I would have been good to go. I won't sell my other holdings though, Joshua. 22/06/2017 09:43 Lukesharewalker Pdts thinks it prefect timing ...hari raya plus bad news....fantastic for retailers to get in...Haha 22/06/2017 09:45 sokdotcom Perdana contract already not considered in the report. This is just market tactics by IB. 22/06/2017 11:43 paktua73 old man eat more 150k unit at 0.685 he he old man on hand share 250k unit avvrge per share at 0.681 old man always crazy one tut tut 22/06/2017 16:45 nikicheong I hate this man... :( Now onwards and upwards, hopefully no issue with Kraken delivery. Days are running out. Just one week left. 22/06/2017 16:57  |
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