I also do believe their might be working with Enquest as well as a potential client for Bluestreak CO2 at Sullom Voe.

As shared before, Bumi Armada was involved in the Shell Sarawak CCS FEED.

Also, they participated in the FSRU pre-FEED for EnQuest at Sullom Voe.

Unsure about any possible final award for either of these projects.

If Bumi Armada does get a project anytime soon, it will be a regasification (FSRU) or liquification (FLNG) project. But that's a big IF.

GANAPATHY SRIHARI RAMA IYER is directly involved in the Bluestreak CO2 venture. He is Ananda's right hand man, directly from Usaha Tegas. Unsure if he is under Bumi Armada's payroll.

Most analysts are clowns not worth their money.

https://www.kenanga.com.my/wp-content/uploads/2024/07/ARMADA-240725-CU-Kenanga.pdf

Official award is not happening by the end of this year, merely a formalization of the Bluestreak CO2 JV. The official award is still a good 12 - 24 months away, maybe even longer or never at all. This MOU is extremely preliminary.

This is a follow up to this: https://www.uniper.energy/united-kingdom/news/uniper-awards-design-study-contracts-for-grain-carbon-capture-project/

Any formal contract award is still at the minimum up to 2 years away. This is a long-term thing that will develop slowly over time.

Some progress as Uniper Grain Power plant is named for the CCS project in UK

Berdasarkan catatan SKK Migas per Juli 2024, beberapa lapangan eksplorasi yang sedang dalam proses farm-out di antaranya wilayah kerja (WK) Andaman I, WK Akia dan WK Bobara.

https://ekonomi.bisnis.com/read/20240722/44/1784405/skk-migas-rayu-perusahaan-kecil-masuk-ri-eksplorasi-migas-bisa-makin-semarak

https://www.petromindo.com/tender/detail/akia-3d-moriite-scismic-acquisilion

Bumi Armada moving ahead with the seismic on Akia.

Reason for increments in share pricing, anyone?

Ambank downgrades to RM0.60. Very odd update given that there's no update or changes to fundamentals.

Gabriel as I understand it, for TGT no renegotiation of rates. It should be broadly in line with previous charter extension. If anything, rated might be lower, but only marginally.

Again, based on my checking with Pharos Energy, the extension to the FPSO charter has been agreed to in principle but no formal signing has taken place.

Basically, they will not be proceeding with drilling two new wells unless there is a charter extension to the FPSO, which expires at the end of this year.

The FPSO will either be extended for a 7 year firm period, or for a 2 year firm + 5 year option period.

Sonnia I think you're in the wrong company. Not suited to what you are looking for (movement with oil prices).

Pharos announces their update on 18th July 2024. Might be some positive update on their TGT drilling and/or license extensions.

One down. Small wins, one at a time.

Some announcements due in the 2nd half of the year:

1. Armada Sterling V full acceptance
2. Armada TGT charter extension
3. RM1.5bil corporate sukuk refinancing
4. Update on Akia PSC
5. Armada Kraken / Sterling II charter extension

Something decent for once.

Still puzzling why it takes them 10 days to announce. If they practice good governance, they should announce as soon as something is finalised to minimise insider trading.

Another opportunity lost. Some more, this is a gas FPSO closer to home. Bumi Armada has been trumpeting its "gas projects".

Gary is sleeping on the wheel and somebody gotta be waking him up!!!

https://www.upstreamonline.com/exclusive/two-contractors-in-battle-for-petronas-ultra-deepwater-fpso-project/2-1-1674744

Haiyoo rather than making stuppid announcements on Bursa, announce something substantive!

Back to reality!

Speculations of a merger might have lifted Bumi Armada’s (BAB) share price in the past month. While combining both FPSO fleets may propel the merged entity to Modec’s fleet size, alongside complementary geographical FPSO market presence, the stumbling blocks are too great in our opinion. There is a lack of financial synergies from the non FPSO segments. If any, we think a collaboration in certain projects may generate more positive market reaction. We advise investors to take profit on BAB.

SELL BAB with an unchanged target price of RM0.50. We assume the recent share price appreciation is related to the speculation, as BAB’s fundamentals is unchanged with no nearterm prospects of a contract win. Moreover, a Jun 24 Upstream article revealed that the payment dispute by ONGC for the JV FPSO Armada Sterling V still lingers, despite the FPSO having already achieved first oil on 7 Jan 24. This also implies that the final acceptance test may miss management’s expectation of Jun 24. Hence, we advise taking profit on BAB.

https://research.uobkayhian.com/content_download.jsp?id=79779&h=633b65a72baf25227e30eaab8d497bba

A deal, if any, is still in its infancy.

I wrote in to Bursa Malaysia today on both MISC and Bumi Armada. Only MISC has responded with an official clarification.

Those who want an explanation or official clarification can write to Bursa Malaysia (Group 3) or Bumi Armada management. It feels like insiders knew about this and were buying last week already.

Shares of Bumi Armada jumped after local media reported that energy-shipping business MISC could be considering acquiring a substantial stake in the company.

Shares of the Malaysia-based offshore energy facilities and services provider rose as much as 6.9% on Tuesday morning. They were recently 4.3% higher at 0.61 ringgit ($0.13), taking 12-month gains to more than 23% and giving the company a market capitalization at MYR3.44 billion.

The Edge publication on Saturday quoted unnamed sources as saying that MISC may be in talks with Bumi Armada shareholders to buy a significant stake.

MISC shares were last 0.5% lower at MYR8.74.

Neither company immediately responded to requests for comment.

Maybank Investment Bank analyst Jeremie Yap said Tuesday that if the deal materializes, it could boost Bumi Armada's shares and would likely be neutral for MISC stock.

Bumi Armada has struggled to secure new floating production storage and offloading vessel jobs recently, likely due to unproven bankability in the past years, Yap said. If it doesn't win enough contracts, Bumi Armada will enter an earnings growth stagnation phase in 2025, he added.

BIMB Securities said it is unconvinced that MISC will proceed with the deal, which it thinks isn't financially justifiable. There are numerous other investment opportunities available that could yield significant returns for MISC's shareholders, the brokerage said.

Given the funding issues that MISC and industry peers are facing globally, the potential acquisition looks like a waste of financial resources, BIMB analyst Azim Faris Ab Rahim said in a note.

https://www.marketwatch.com/story/bumi-armada-shares-jump-after-report-of-potential-stake-acquisition-by-misc-34cc7457?mod=markets

Let's see how the market takes this news. Might see a jump in price and volume tomorrow, or it might be a nothing-burger.

Keep in mind that there are some key Malaysian/Petronas FPSO tenders on-going - Salam-Patawali (Conoco), Kikeh replacement FPSO and Kelidang (Brunei). Might be wanting to consolidate things closer to home as well.

Also, a dark horse might be Bumi Armada's position in the FSIU / FCSIU space. They're doing advanced work for FSIU / CCS for Shell. MISC might want to leverage on Bumi Armada's expertise in this area. I personally think that Bumi Armada doesn't have any edge in this area...but maybe they do, and we don't know yet.

Nothing too damning, but plans are afoot and I hope something comes of it this time. I can see MISC buying Ananda's stake, and then injecting their FPSO into Bumi Armada

Link to the article: https://ibb.co/8sJz0Cc

If anybody has access to The Edge Weekly digital edition (or even print edition), appreciate if you could share the article. Seems like there's something substantive this time around. The Edge is usually quite reliable in their insider information.

I'll gladly accept an exit offer above the 80 sen range, maybe even 75 sen.

Like watching paint dry.

Thus far, it was a rather quiet first half of the year. Not one single news announcement (other than Armada Sterling V first oil).

Some announcements due in the 2nd half of the year:

1. Armada Sterling V full acceptance
2. Armada TGT charter extension
3. RM1.5bil corporate sukuk refinancing
4. Update on Akia PSC
5. Armada Kraken / Sterling II charter extension

Looks like Yinson is set to secure yet another FPSO win in West Africa. Truly a slap on the face of Bumi Armada management. Despite having 3 to 4 FPSOs under varying phases of development, Yinson is still able to secure lucrative contracts. That's how far Bumi Armada has fallen. Their reputation in the FPSO space is tattered, and they have no reputation in the green energy or gas spaces. They were the best OSV player around a decade ago, now they sold off the entire OSV division. Bloody bunch of ammeters!

https://www.upstreamonline.com/exclusive/malaysia-player-set-to-scour-market-for-africa-fpso-topsides-modules/2-1-1666960

Greedy Gary is going to Almaty in a few days. Blessed may he be.

Don't hold your breath though, I expect Bumi Armada to fail to secure either of these contracts.

There are two upcoming #FPSO opportunities in Malaysia:

1. ConocoPhillips-operated Salam-Patawali oil development offshore Sarawak: This project requires a new FPSO with a production capacity of 30,000 to 55,000 barrels of oil per day and storage for up to 600,000 barrels of oil.

2. PTTEP-led replacement project on the Kikeh oilfield offshore Sabah: This project needs a replacement FPSO for the existing Kikeh field.

Invitations to bid for these projects are expected to be issued soon. This is a good opportunity for suppliers of leased FPSOs.

Here are some additional details that might find helpful:

• Malaysian FPSO players are well-positioned to benefit from these opportunities, with companies like Bumi Armada, MISC, Yinson and MTC having a strong track record in the region.

• The FPSO market in Southeast Asia remains buoyant, with several tenders expected for floating production, storage and offloading vessels.

Overall, these projects represent a significant opportunity for companies in the FPSO sector.

https://www.upstreamonline.com/field-development/double-fpso-opportunity-in-malaysia-about-to-begin-bidding-phase/2-1-1665451

Rohan understand it but your concerns about the calculations are misguided. In the absence of new contracts and all else being equal (i.e. fx rates etc), then as the company runs down its charters, the NPV will reduce every sequential quarter.

Even Genting has a lucrative FLNG contract. https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3457525

Quite shameful I must say.

The Armada Sterling V FPSO, operating at ONGC’s Cluster 2 project in Block KG-DWN-98/2 in India, achieved first oil on January 7, 2024. The FPSO, owned by a joint venture of Shapoorji Pallonji Energy (70%) and Malaysia’s Bumi Armada (30%), is awaiting a final acceptance test to start receiving the full charter rate from ONGC. However, Bumi Armada disclosed that certain payments have been withheld by ONGC during the start-up phase, pending discussions on additional outstanding claims. Market sources indicate that the FPSO owners are currently receiving lower revenues compared to the full charter rate due to these unresolved issues.

The main outstanding issue appears to be the introduction of gas into the FPSO, which, once resolved, will trigger the start of the full dayrate. Additionally, payment issues have persisted from the previous year when the FPSO was ready to receive hydrocarbons, but ONGC could not deliver production due to damaged subsea infrastructure at Cluster 2. Bumi Armada and ONGC continue discussions to resolve the payment issues and move forward with full operations.

The Armada Sterling V is India’s largest floater, with an oil processing capacity of 50,000 barrels per day, a gas capacity of 3 million cubic meters per day, and a crude storage capacity of 700,000 barrels. The FPSO, converted from the tanker Ariake by Seatrium in Singapore, is designed to withstand severe cyclonic conditions.

https://www.upstreamonline.com/rigs-and-vessels/payment-dispute-lingers-for-largest-fpso-operating-in-india/2-1-1660662

Tim, they've been stuck at 12k bopd since January.

New Delhi, June 11 (IANS) Public sector upstream giant Oil and Natural Gas Corporation (NS:ONGC) will start gas production from its eastern offshore deep-water field in the Krishna-Godavari block KG-DWN-98/2 soon, Minister for Petroleum and Natural Gas Hardeep Singh Puri said on Tuesday after taking charge as a member of the Modi 3.0 Cabinet.

He also said that oil production will increase to 45,000 barrels per day very soon.

https://in.investing.com/news/stock-market-news/ongc-to-start-gas-production-soon-from-eastern-offshore-krishnagodavari-field-hardeep-puri-4245649

I know two project-related personnel (buyer and engineer) who have been re-designated to support roles (asset integrity and compliance). I also see a number of people who are linked to the "green energy" ventures such as FSIU and FCSIU looking for new roles.

As such, one could deduce that Bumi Armada really may not have much, if at all anything, in the pipelines.

The Armada Sterling V FPSO should achieve full acceptance in the coming weeks. They are actively tendering for their SC vessels in the Caspian sea. They are working on tie-back for the Bressey field to the Kraken. They will secure license extensions for TGT and Kraken FPSOs, maybe Sterling II FPSO as well. They are working on progressing the Akia upstream project. Other than this, there's nothing concrete coming out from Bumi Armada. The Bluestreak CO2 venture is going nowhere.

Again, things may change overnight if they win a contract. But nothing for now.

Recent research report on ONGC that includes commentary on the 98/2 project.

https://images.moneycontrol.com/static-mcnews/2024/06/20240605095301_ONGC_05062024_Motilal-Oswal.pdf

https://rfs.cgsi.com/api/download?file=90a6ff1b-5a9a-48fd-8719-04ce19936385

Pharos Energy has confirmed that FPSO extension will be secured before drilling commences for the 2 new wells. Previously they told me that it would be signed by mid May 2024.

It's still coming, and probably very soon. I expect the announcement to come within the next 3 months.

Irrelevant Jonathan

"This forum is beginning to feel like a university study group doing a thesis on BAB."

HAHA. Isn't that a good thing though?

SSLEE Yinson's job is just properly executing its contracts. That's partially Bumi Armada's downfall - they were working simultaneously on 4 projects in 2015, and there were delays for all. Compounded by Armada Claire being terminated and the OSV oversupply situation back then. Yinson would be wise to learn and avoid a repeat of the same.

@Robert they've not won anything, we'll be one of the first to know once it's public knowledge.