KUALA LUMPUR (Sept 12): Bumi Armada Bhd said its 30%-owned subsidiary Bumi Armada 98/2 Pte Ltd (A98/2) has achieved financial close under its long-term project financing facility of US$948 million.

In a filing, Bumi Armada said the funds have been utilised to fully repay the associate’s US$930 million bridge loan facility.

A98/2, a venture with Shapoorji Pallonji group, owns the Armada Sterling V FPSO and is providing dry lease to sister company SP Bumi Armada Godavari Private Ltd (SPBAG).

SPBAG, also a 30:70 venture between Bumi Armada and Shapoorji Pallonji, had won a US$2.1 billion tender from India’s Oil and Natural Gas Corp Ltd (ONGC) for the charter hire and operations of the FPSO at the KG-DWN-98/2 block in Bay of Bengal for nine years.

“As at the date of this announcement, the Armada Sterling V FPSO is awaiting hydrocarbons from ONGC to conduct the necessary acceptance tests to achieve final acceptance,” Bumi Armada said.

Start-up of oil and gas production was initially targeted in 1Q2023. However, a damage on the field’s critical subsea infrastructure had resulted in a delay in the first oil date.

Shares of Bumi Armada traded up half a sen or 0.97% at noon market break on Tuesday, valuing the FPSO operator at RM3.05 billion.