During the ten months to end October 2023, average gross production was 19,108 Boepd (net 13,471 Boepd), which is reflective of high uptime before and after the anomalous failure of hydraulic submersible pump (‘HSP’) transformer units during the first half of the year. Since the efficient return to service of the floating production, storage and offloading vessel (‘FPSO’) restored full production in early August, the Group has overseen a return to top quartile performance, with the FPSO delivering production efficiency and water injection efficiency of 100% for the months of September and October. In addition, delivery and deployment of new HSP transformer units has provided increased resilience to production capacity.

Production in the second half of the year has benefited from the removal of two planned periods of single train operations, with the Group having executed maintenance work while production at the FPSO was shut-in. As a result, no further planned maintenance outages are anticipated during 2023.

Looking ahead, the Group has procured a mobile offshore drilling unit for the proposed drilling of two wells at Kraken during 2025.

https://www.enquest.com/media/press-releases/article/operations-update-17

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Positive update from Enquest. Further drilling in 2025 means that the FPSO's charter will be extended into its option period. Note that the Kraken FPSO's firm charter period ends in 2025.

Quiet day, not even half a mil traded. Calm before the storm perhaps?

Seems like there might be an FSRU award soon. Unknown if this is related to the Mumbai FSRU project or not.

Don't forget, we have so many announcements with zero follow through for now. We best see things moving by Q1/Q2 2024, otherwise we can conclude that Bumi Armada is heading to its sunset.

1. Mumbai FSRU (JV with Shapoorji)
2. UK FSCIU (JV with Navigator Gas)
3. Madura FLNG (JV with Pertamina)
4. Akia PSC (JV with Pexco)
5. Akia FPSO + FLNG (JV with Pexco)
6. Unknown Indonesian CCS FEED (unknown)
7. Budi Onshore Gas Plant pre-FEED (unannounced)

I think they focus on selling off the Armada Installer / Constructor in Russia and work to pay off the RM1.5bil Sukuk due in September 2024 (instead of refinancing it). There will be sufficient internally generated funds to make the payment since the unsecured term loans have been refinanced to a much later date.

There is also a small but non-zero possibility that Armada TGT is sold off to the field operators. But more likely we will get an announcement of a 2 yr firm + 5 yr optional extension for the FPSO there in the coming months. This extension alone will add around 10 - 15 sen to Bumi Armada's valuation.

@MM78, it's down to orderbook replenishment. Simple enough!

Management has failed to secure any new contracts since 2015(!) with the exception of the Armada Sterling V FPSO project in India, and even that is only with a minority stake of 30%.

People here have made many excuses, but to me they don't fly. We have had a tight FPSO market for 3 years now and have successfully cleaned up the balance sheet, and yet, we've got nothing to show for it.

As it is, the market is valuing Bumi Armada at a discount simply because there is no major growth catalyst.

Yes, the P/E is low, the P/B is low, the ROE is at double digits...all these will continue remaining so only until 2025, cause after that once Kraken FPSO enters the option period, you will start to see profits decline, P/E increasing, P/B increasing and ROE falling.

Delay of at least another week.

I swear, it feels like this FPSO is never coming online!

From what I understand, first oil is yet to be achieved. Will try for today or tomorrow.

Around RM120m per year (equivalent to 2 sen EPS)

Final acceptance usually around 3 days from first oil. Full acceptance will be around 3 to 6 months from the final acceptance date.

In any case, Bumi Armada is notorious for late announcement to Bursa Malaysia.

Case in point - Armada Olombendo achieved first oil on 8 Feb 2017 (and was also reported on Upstreamonline), but Bumi Armada only published the announcement to Bursa Malaysia on 17 Feb 2017. So much time for insiders to buy in and reeks of poor corporate governance. Lets see if they improve this time around.

------------------

Malaysia, 17 February 2017 - Bumi Armada Berhad, Malaysia-based international offshore
energy facilities and services provider is pleased to announce that its floating production storage
and offloading (FPSO) unit, Armada Olombendo, has achieved first oil production in Block 15-06
in Angola, for Eni Angola S.p.A.(“Eni Angola”), on 8 February 2017.

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=2735893

If what CT888 says is true, this means I received conflicting information.

Latest I have on the Armada Sterling V FPSO is that first oil is delayed due to equipment malfunction. Could be as short as a few days to resolve it or longer than that, as the issue is of an unknown severity - it needs to be checked by the supplier.

Still not yet, hang in there and keep your fingers crossed!

Some additional information on the CO2 JV with Navigator Gas: https://i.ibb.co/DDPfnSv/image.png

Still waiting for first oil

CT888

top up full today.
Armada will soon close the gap down fr 62cts (om 2June)

CT888

1st oil is on track.
I can only say this much, believe it or not upto u

@CT888 I wouldn't be so boastful of my trades at the close if I were privy to insider information. Be careful. Bursa Malaysia monitors all transactions.

If my source(s) are to be trusted, first oil is all ready for tomorrow. So lets keep our fingers crossed.

Final/full acceptance will still be around 6 months away. Provisional acceptance will be within 48 - 72 hours.

First oil coming tomorrow

Have a good weekend folks. Hopefully there's some good news to be shared come Monday morning!

https://assets.theedgemarkets.com/pics/2023/20231117Bumi1v2.png

If somebody can share the report by CIMB, that'd be much appreciated. It's usually the most meaty, well-written report.

AmInvest: The group’s 30%-owned FPSO Armada Sterling V is expected to see first oil by 21st November, which will be followed by the vessel acceptance test which may take up to 3 days.

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Kenanga analyst must be sleeping on the job.

From Kenanga report: ARMADA has guided that first oil could be in 1HFY24 but the exact date was not provided.

WTFFF!!!

Next thing they need to do is sell off the Caspian subsea assets.

Hi everyone, please share research reports as you get them. Particularly interested in CIMB and UOB.

Maybank: https://mkefactsettd.maybank-ke.com/PDFS/350951.pdf

A rather "boring" update. There are around RM30mil - RM40mil hidden losses from Armada Kraken in the quarter as the FPSO only returned to full operations on 9 August 2023. So the revenue deficit in the first 40 days of the quarter would've directly hit the bottomline. Expect a far stronger Q4 2023, especially with some contribution from Armada Sterling V as well. Assuming no issues, next quarter we shall see core net profit in excess of RM200mil.

Reported net profit to SH: RM177.8mil

Adjustments:
Unrealized FX Loss: +RM15.4mil
Gain on Disposal: -RM18.1mil
Reversal of Impairment: -RM0.5mil

Net adjustment: -RM3.2mil

Adjusted core net profit to SH: RM174.6mil

No shit, Sherlock

Yes according to my source, staff abroad the FPSO received an official email notification today that first oil is due to be provided on or by 19th November 2023.

So fingers crossed this time next week we get an official announcement from Bumi Armada on the first oil from Armada Sterling V, and consequently the commencement of the charter period!

Based on Bumi Armada's website, the ARMADA LNG Mediterrana is now a jointly-owned vessel. Hmmmm???

Possibly insiders know of another delay to Armada Sterling V ffs!!!

It's coming soon for sure, as late as mid December 2023, but it should be here by the end of the year. Fingers crossed no more hiccups.

Full article:

India’s state-controlled Oil & Natural Gas Corporation (ONGC) is poised to kick off oil production within days from its much-delayed flagship deep-water project in the Krishna Godavari basin offshore the nation’s eastern coast.

The $5 billion Cluster-2 project in the KG-DWN-98/2 block is being developed by 26 subsea wells feeding up to 60,000 barrels per day to a floating production, storage and offloading vessel.

ONGC is just days away from firing up production, after more than two years of delays due to the coronavirus pandemic and other key execution issues, two people with direct knowledge of the development told Upstream.

“McDermott International [the key installation contractor] is carrying out pre-commissioning activities and ONGC is likely to start production as early as 20 November,” one person noted.

Oil will be produced by the Armada Sterling V FPSO, which is ready to get to work, according to one source.

“Initially up to 10,000 barrels per day of oil is likely to be produced from the [development’s] M field,” the source said.

The floater is owned by India’s Shapoorji Pallonji Energy and Malaysia’s Bumi Armada in a 70:30 joint venture and completed installation of a seawater lift riser on 20 January. It sailed away from a yard in Singapore on 21 November last year.

At a later stage, Cluster-2’s A & P fields are also likely to be brought online, with the FPSO set to produce 60,000 bpd of oil at its peak, sources noted.

Oil production from Cluster-2 was set to begin in the first quarter of this year. However, the delays continued after the field’s critical subsea infrastructure suffered damage.

Upstream understands that the damage has been fixed.

It's a weird article that says production will begin "within days", while my sources are instead telling me there is another delay, from the November 2023 start-date to December 2023 start-date. Time will tell.

https://www.upstreamonline.com/exclusive/indian-giant-poised-to-start-oil-production-from-5-billion-deep-water-project/2-1-1546779

India's state-controlled Oil & Natural Gas Corporation (ONGC) is poised to kick off oil production within days from its much-delayed flagship deep-water project in the Krishna Godavari basin offshore the nation's eastern coast.

FYI W Hotel is being sold, 2% deposit has been collected.

Bumi Armada is working on the pre-FEED for building an onshore gas plant at the Budi gas field in Indonesia.

3. Subsea Construction

Subsea Construction specialises in EPCI and T&I subsea projects, with in-house construction vessels, assets, and facilities located in Caspian Sea, capable of undertaking offshore construction at various water depths:

a. Armada Installer
Derrick Pipe-Lay Barge with traditional S-Lay and J-Lay laying capabilities and heavy-lift capabilities

b. Armada Constructor
Multipurpose Shallow Water Barge with very-shallow water pipelaying and dredging capabilities

c. Post-Trenching / Deburial Systems
Cutting machine and jetting machine

2. Gas Infrastructure

In line with the company’s sustainability strategy, gas infrastructure will drive future growth. The business focus is in developing the network of facilities and systems used for the extraction and distribution of natural gas. This is essential for ensuring a reliable and efficient supply of cleaner burning fossil fuels to meet the growing demand for cleaner energy.

To support our clients to achieve 2050 Net Zero within the timeframe required, Bumi Armada has developed several innovative solutions offering the opportunity to reduce the amount of greenhouse gases released into the atmosphere.

- Floating LNG Unit for early monetization of stranded gas;
- Floating Storage Regasifcation Unit to meet early demand for natural gas;
- Carbon Capture to reduce the amount of greenhouse gases released into the atmosphere;
- Floating CO2 Storage Injection Unit to create negative emissions.

1. Operations

The Operations business unit specialises in engineering, procurement, construction, commissioning, and the operations of floating oil and gas facilities as per the specific requirements of clients.

3 wholly owned FPSOs
3 jointly owned FPSOs
1 Liquefied Natural Gas ("LNG") floating storage unit ("FSU")
1 partially owned FPSO under construction

The "Our Services" page has been fully updated: http://www.bumiarmada.com/our-services/

Bumi Armada Berhad provides services throughout the oil and gas value chain – from exploration through to field development construction, production and operations – via three central business units.

Business Units:

1. Operations
2. Gas Infrastructure
3. Subsea Construction

Having simultaneously managed and delivered several large projects safely, the company has developed a reputation for its project management capabilities. We deliver innovative solutions and quality facilities that incorporate leading technologies to cater to your needs in field development, production and storage.

As an integrated oilfield services provider wherever your company is, in terms of field development and production, Bumi Armada offers a range of capabilities from life of field surveys, production facilities, installation and operations. Drawing on our decades of experience we will bring innovative solutions to bear, provide quality facilities safely and services as well as incorporate leading technologies where appropriate.

@Robert, ABS also approved their FLNG concept. Bumi Armada made a Bursa Malaysia announcement on this a couple of days ago.

Hari hari announcement tapi takdak anything concrete. Bila hujan, ia akan mencurah-curah!

BlueStreak CO2 has a logo: https://oeukdecarbonisationconference.co.uk/wp-content/uploads/2023/09/Bluestreak-CO2-1.jpg

Bumi Armada is also doing pre-FEED for an Onshore Gas Plant facility. We might get an announcement in the next few months on this if it materialises.

Bumi Armada Berhad ("BAB") refers to its announcement on 24 April 2019 and 23 February 2021 with respect to its existing USD660 million term loan facility ("Existing Facility"), and wishes to announce that Bumi Armada Holdings Labuan Limited ("BAHLL"), its wholly-owned subsidiary, has successfully secured a Syndicated Term Loan Facility (“Term Loan Facility”) for an aggregate principal amount of USD105.5 million with a final maturity of 25 September 2028, to refinance the remaining balance of the Existing Facility maturing in May 2024.

BAB’S Chief Executive Officer, Gary Christenson said:

“We are pleased that we repaid a significant amount of the Existing Facility over recent years. We are equally delighted to have secured the new Term Loan Facility which demonstrates continuing strong support from our financiers.”

The announcement is dated 11 October 2023.

RayLee the first oil date for Armada Sterling V has no relationship with the Q3 results for Bumi Armada. Two different things.

Let's wait and see if there's any truth to it. I'm skeptical but you never know.