Guys, the excuse that Bumi Armada is "being selective" is wearing thin. Other operators who are handling 3, 4 or 5 projects at any given time have the luxury of "being selective". I feel there might be more to this, that Bumi Armada's core competency is being called into question. Time will tell.

Truth be told, were it not for the ample margin of safety at the current price levels, I might've sold out. No Cameia FPSO. CCS project still at least 3.5 years away. The Indonesia venture into field development is 10 years away from commercial viability. Armada Sterling V plagued by never-ending delays. A whole lot of nothing to be excited about.

The key bit: "However, multiple sources have told Upstream in recent months that Bumi Armada has pulled out of further contract talks for reasons that are unclear."

TotalEnergies has started fresh talks with contractors to supply a floating production, storage and offloading vessel in Angola for its delayed $6 billion Cameia-Golfinho project, where it has just spudded an exploration well to try to boost reserves.

The Grenadier-1 probe in Block 20/11 was spudded in mid-July and any discovery there would likely be tied back to the planned FPSO.


TotalEnergies’ Angolan pact paves the way for $6 billion offshore project
Read more
The French supermajor in 2021 launched a preliminary front end engineering and design (pre-FEED) competition for a 100,000 barrels per day FPSO, then aiming to take the final investment decision the following year.

However, a number of factors including the Covid pandemic, supply chain costs, contractor financing constraints and production sharing contract negotiations with Luanda conspired to delay the project.

The offshore development is now expected to be sanctioned this year and is scheduled to come on stream in 2026.

Participants in the original paid pre-FEED contest were Technip Energies of France working with Malaysia’s Yinson; Italy's Saipem working with MISC of Malaysia; and Kuala Lumpur-based Bumi Armada.

At the end of that design contest, Bumi Armada emerged as the preferred FPSO supplier, well-placed sources said, and subsequently the Malaysian player worked on the project's FEED phase, which would have evolved into a turnkey contract.

However, multiple sources have told Upstream in recent months that Bumi Armada has pulled out of further contract talks for reasons that are unclear.

TotalEnergies is now sourcing a replacement supplier for what is said to be a 70,000-bpd FPSO, with the name of Saipem — which participated in the original design contest — cropping up a lot on the market grapevine, alongside some Asian names; while Modec and BW Offshore might also consider throwing their hat into the ring, Upstream understands.

According to sources close to the project, the floater will not be chartered, but will instead be provided on an engineering procurement, construction and installation basis, with TotalEnergies set to own the vessel outright.


TotalEnergies to sanction $6 billion Angolan project in June
Read more
In parallel with the FPSO tender process, the operator has been finalising PSC terms with the Angolan government.

Jimmy Boulter, regional manager at energy intelligence supplier Enervus, said in a recent LinkedIn post that “key to this greenfield project… are the legislative incentives being put in place”.

He noted that Angola’s Council of Ministers recently approved PSC amendments for Block 20/11, which will see Block 21/09 and Block 20/15 — which hosts the Lontra discovery — incorporated into the Block 20/11 area.

In addition, Boulter said TotalEnergies “will look to take advantage of” the fiscal incentives decreed by Angola in 2018 for marginal fields, which are defined as those holding less than 300 million barrels of oil.


Malaysian floater player pins down strategy for African FPSO
Read more
Meanwhile, Grenadier-1, which is being drilled by the Valaris DS-12 drillship, with Enervus expecting it to target an Early Cretaceous pre-salt prospect west of Golfinho, which is a carbonate field.

TotalEnergies was approached for comment on Cameia-Golfinho, but had not replied by the time of publication.

Cameia-Golfinho will be the first deep-water project in the much-hyped pre-salt Kwanza basin where hundreds of millions of dollars have been spent on wildcats from 2012 with little to show for it.

The project is important for the Angolan government, which has been working hard to create the right conditions for oil companies to invest and maintain production levels.

This is some disastrous news. Fkin hell, Bumi Armada!!!

TotalEnergies starts fresh talks with FPSO players on delayed $6 billion Africa project

Supermajor looks to replace favoured floater supplier, while eyeing resource boost from new exploration well

https://www.upstreamonline.com/exclusive/totalenergies-starts-fresh-talks-with-fpso-players-on-delayed-6-billion-africa-project/2-1-1495756

My friends, patience is a virtue.

Armada Sterling V first oil has seen numerous delays. The most updated timeline we have is the August – October 2023 period from the Chairman during the ONGC investor meet at the end of June 2023. He said August 2023 if the weather is good, or October 2023 if the weather is bad.

So the first oil could be due anytime in these coming 3 months, though I would not be surprised of further delays going into 2024 even. The way things work there in India can always be rather “magical”.

Felix I think you've jumped the gun. Any returns from this will likely be seen 5, 10, 15 years down the road. And maybe never.

A consortium comprising Netherlands-registered Pexco Energy and Malaysian Bumi Armada’s 100%-held subsidiary Armada Etan has been awarded the Akia block, which the Ministry of Energy & Mineral Resources (ESDM) earlier touted as having world-class hydrocarbon potential.

Akia, which is located off the coast of North Kalimantan, has an estimated resource of 2 billion barrels of oil and 9 trillion cubic feet of gas.

The block is contiguous to several contract areas (CAs) that have proven hydrocarbon potential such as Tarakan, Bunyu and Nunukan.

The joint venture’s minimum commitment work programme during the initial three-year exploration term comprises three geological and geophysical (G&G) studies, and the acquisition and processing of 750 square kilometres of 3D seismic data.

The total minimum exploration spend is pegged at $7.7 million and the duo paid a $500,000 signature bonus to secure the Akia asset.

Interestingly, Armada Etan Ltd was a dormant subsidiary for many years, until the end of FY2021 at least based on the company's annual reports. However, in FY2022's annual report, it was no longer classified as a dormant subsidiary, rather it's an active subsidiary with a principal activity of "Provision of business development services to the Bumi Armada Group of Companies".

So there might be truth to this rather interesting development.

You heard it first here, folks!

Official from the Ministry of Energy and Mineral Resources:

https://www.esdm.go.id/en/media-center/news-archives/kementerian-esdm-tetapkan-pemenang-lelang-wk-akia-beluga-dan-bengara-i

The consortium Armada Etan Ltd. and Pexco Tarakan NV came out victorious as the winners of this year's first oil and gas block for the Akia block located in Offshore North Kalimantan. The Akia block has potential reserves of 2 billion barrels of oil (BBO) and 9 trillion cubic feet (TCF) of gas. The Akia block will be managed using a cost recovery contract scheme, with a signature bonus of US$500,000 and total commitment of $7.7 million.

https://www.thejakartapost.com/front-row/2023/07/31/ipa-convex-2023-concludes-shows-optimistic-future-for-oil-and-gas-industry.html

I find it very hard to believe that a wholly-owned subsidiary of Bumi Armada directly participated in a bid for acreage.

As things stand, Bumi Armada has stood aside as a contractor working with field operators. I wonder what it means, for the company to themselves become an operator, if this news is indeed true and if Armada Etan is still owned by the company.

"A consortium comprising Netherlands-registered Pexco Energy and Malaysian Bumi Armada's 100%-held subsidiary Armada Etan has been awarded the Akia block"

UpstreamOnline is confirming the news

https://www.upstreamonline.com/exploration/all-blocks-snapped-up-in-indonesias-first-2023-licensing-round/2-1-1493193

Now this is eyebrow-raising news:

"The Akia block in North Kalimantan, which has estimated resources of two billion barrels of oil and nine trillion cubic feet of gas, was awarded to a consortium of Armada Etan Ltd. and Pexco Tarakan N.V."

https://www.reuters.com/article/indonesia-energy-idUSL4N39D254

"On 17 February 2015, Armada Etan Limited (“Armada Etan”) was incorporated as a wholly-owned
subsidiary of Bumi Armada Offshore Holdings Limited (“BAOHL”) in the Republic of The Marshall
Islands with an authorised capital of USD50,000 comprising 50,000 shares of USD1.00 each, of
which 10,000 shares have been issued upon incorporation. BAOHL is a wholly-owned subsidiary of
the Company."

https://cdn1.i3investor.com/my/files/st88k/5210_ARMADA/qr/2015-03-31/5210_ARMADA_QR_2015-03-31_Bumi%20Armada%20Q1%202015%20-%20Quarterly%20Report_1704856790.pdf

Latest I'm hearing is the transformer is still undergoing refurbishment. It is expected to be installed within 1 - 2 weeks.

Also received confirmation that Bumi Armada is being paid % of dayrate charter equivalent to % of production achieved. No other penalties due to Enquest.

Another new job posting: https://icontract.airswift.com/jobs/1191910

The project will have two components:

1) Engineering, Procurement, Supply, Construction and Commission (EPSCC) Contract
2) Operations and Maintenance (O&M) Contract

I'm not sure if Bumi Armada has bid for the O&M contract, since they will not be owning the FPSO. But it might make sense to do so, since they already have a presence in Angola.

Cameia should be "coming soon".

Total is still hiring for their positions. Seems like Bumi Armada is a done deal, question is when will they announce?

This is a recent job ad posted by / on-behalf-of TotalEnergies: https://www.emploi.ma/offre-emploi-maroc/lead-planner-7977971

"Position based in Kuala Lumpur (Malaysia) within the FPSO contractor premises."

Both MISC and Yinson are not in the running for this FPSO, so it's quite clear Bumi Armada has been selected.

At our company, we pride ourselves on operating state-of-the-art fleet of FPSOs that are designed and operated to the highest standards of safety, efficiency, and sustainability. Our fleet includes the FPSO LAKAM-HA, formerly known as Armada Claire, which was recently acquired by an international conglomerate, it was renamed to better reflect the commitment to the Latin American region.

The FPSO LAKAM-HA is a cutting-edge floating production unit that has been extensively upgraded and modernized to meet the needs of our clients. Equipped with advanced technologies and systems, It is designed to operate in a wide range of environmental conditions and is certified to comply with the highest international safety and environmental standards.

FPSO LAKAM-HA is a state-of-the-art floating production, storage, and offloading unit that offers the following features:
Deadweight: 102,123 tons.
Dimensions: 240.7 m length, 41.8 m beam, 9.2 m draft, and 135 m operational depth.
Water injection capacity: 60,000 barrels per day.
Gas processing capacity: 53 million cubic feet per day (MMcfpd).
Injection capacity: 48 MMcfpd.
Maximum storage capacity of 753,347 barrels.
Accommodation for 60 crew members.
Helipad with a capacity of 12.8 tons.
With these features, FPSO LAKAM-HA is a versatile and reliable asset that enables efficient production and storage of hydrocarbons, while providing a comfortable and safe living environment for the crew.

We are proud to have the FPSO LAKAM-HA as part of our fleet and look forward to leveraging its capabilities and expertise to deliver safe, reliable, and sustainable floating production solutions to our clients in Latin America and beyond.

Armada Claire FPSO is going to be deployed to Mexico, sadly it will be operated by another company as it's no longer owned by Bumi Armada.

https://www.upstreamonline.com/exclusive/clouds-clearing-around-fpso-mystery-with-new-contract-in-sight/2-1-1488810

I wonder why Bumi Armada was not able to clinch this contract, but another operator was able to.

I am pleased to confirm that we returned a refurbished HSP transformer unit to service on the 20th July, bringing us back to dual-train production, and we have been producing at c.90% of capacity since that date. We have a further transformer unit being refurbished currently, and would hope to bring that online in the coming weeks, bringing us back to full production.

This week was a good week for Bumi Armada shareholders. Lets hope the coming weeks bring more positive developments.

Have a great weekend everyone!

The "missed profits" from being unable to capitalize on the higher fx rates is around RM2.5mil. Small but still, "free profits" that have been squandered

The Hong Leong research report still says 6 months downtime.

The fact is, the plan is to get the FPSO producing and operating at 100% capacity by 5th of August 2023.

As for the financial impact, my simple, back-of-the-envelope calculation is around RM60mil at the low end to RM90mil at the upper end (around 1 to 1.5 sen worth per share, which is not all that much).

The financial impact would be slightly more pronounced I reckon given the high USDMYR rate from end May to mid July. Coincidently, Bumi Armada would not have been able to "enjoy" these higher exchange rates (>4.6 USDMYR) sadly.

On the whole, I'd still expect the annual core net profit to come in at around RM720mil.

Please share updated research reports!

Robert I think the financial impact might be higher.

20 days zero production
10 days 50% production
30 days 60% production

That's around 38% production for the two months from 20th May (day of issue) until today.

Negating impact would be two week single train maintenence work (I.e. 2 weeks at 50% peoduction) was covered in this tike period.

I estimate a return to 100% production within 2 weeks.

Cost of repair conservative estimate would be RM10mil.

No other financial penalty from Enquest other than credit (I.e. clawback) of dayrate for u fulfilled production capacity

The move up will always be more cautious than the knee-jerk move down.

SPOG wants the Mumbai FSRU to be
operational by the fourth quarter of 2026
and is setting up the estimated Rs2690cr
(8384m) project under a 30-year BOOT
agreement signed with the Mumbai Port
Trust on May 18 (2021). SPOG is in talks
with "multiple shipyards” to secure a
decommissioned LNG tanker with
170,000 cubic metres of storage capacity,
converted to an FSRU equipped with
membrane-type tanks and a
regasification unit. A South Korean
shipyard, either Samsung or Hyundai,
will most likely be selected, given their
track record of constructing membrane-
spec FSRUs. SPOG expects the FSRU to be
ready and delivered within 36 months of
the order. Meanwhile, basic engineering
has been done on the 400-metre-long
jetty to be constructed on an island off
Mumbai. Actual construction will most
likely be done by SPOG group company
Afcons which has sufficient expertise and
experience. In June 2022, Italy's RINA
Consulting bid the lowest in a tender to be
SPOG's engineering consultant for the
project, quoting Rs4.4cr ($628,000) and
was formally appointed by Mumbai port
in late November 2022.

Shapoorji Pallonji Oil & Gas (SPOG) has revived talks with IndianOil, BPCL and GAIL about taking gas from its proposed FSRU off Mumbai, buoyed by a temporary drop in LNG prices.

Since March 2023, SPOG has felt more confident about proceeding with the 5m t/y FSRU project and has been talking to the three off-takers about booking capacity. SPOG aims to finalise the offtake agreements within the next two or three months so that the FSRU can be ordered by December 2023.

"All the plans and drawings are ready," says a source. "Project construction can begin as soon as the offtake agreements are in place."

He adds that SPOG would initially offer a 3m t/y capacity for booking, which will slowly ramp up depending on the market's response. SPOG is keen on 15-year offtake agreements.

https://www.petrowatch.com/synopsis.php?artId=20889&w=1

Guys, regarding the TotalEnergies Cameia FPSO project, the trail has gone cold.

What I know for certain is Bumi Armada received a Conditional LOA (CLOA) last September. They have since built up the project management and engineering teams to execute the project.

As to when the award will become unconditional, it's not certain. Could be any day now, could be a few months down the road, or the project award may go to another company, or the project may be scrapped altogether.

My bet is on option 1 or 2, but again, nothing certain as of now.

I'm impressed Bumi Armada is making the announcement ON the day of the improvement, unlike previously where they waited more than a week. They must've gotten a stern internal warning from Bursa Malaysia.

Well, there you go folks! :)

I'm trying to get some update but they're being tight-lipped. Either things have gone bad or they're just waiting for things to stabilize before confirming that 80% has been achieved.

The development of Lac Da Vang went on hold at the beginning of the Covid-19 pandemic, just as the project was building momentum.

Now it has returned, according to multiple market sources, with Murphy inviting regional oilfield services contractors to bid for the two major offshore facilities; a leased FSO vessel, and an offshore processing platform.

The FSO opportunity has been opened up to suppliers in Southeast Asia and #Vietnam including the Malaysian companies MISC, BumiArmada, Yinson Production and the established Vietnamese players PetroVietnam Transportation Corporation (PV Trans) and PetroVietnam Technical Services Corporation, said market sources.

As for the offshore production platform (topsides processing deck weighing about 6000 tonnes), Murphy has somewhat surprisingly opened the bidding process to international contractors rather than reserving the work for Vietnamese builders which is often the case.

Regional sources informed that one reason Murphy has opened up the bid internationally is that the Vietnamese yards are filling up with work orders and are forecast to get even busier as work from additional major resources projects such as Block B materialises.

https://www.upstreamonline.com/exclusive/murphy-back-in-business-in-vietnam-as-major-offshore-project-moves-ahead/2-1-1484723

That means:

1. 3 weeks after shut-in, production was restored to 50%
2. 4 weeks after shut-in, production was restored to 60%
3. 9 weeks after shut-in, production is expected to be restored to 80%
4. xx weeks after shut-in, production is expected to be restored to 100%

It's not as bad as initially feared, with many analysts penciling in 6 months of zero production.

Question now is, what's the hold up to 100% production, and when will that happen?

The latest situation at Kraken is as follows:

- One of the original HSP transformer units has been refurbished and has arrived offshore at the FPSO
- We hope to install that unit and return it to service in the next 1-2 weeks, restoring production to c.80%
- Options enabling a return to full production are under evaluation and will be actioned as soon as possible

Thanks Gabriel. Based on the Youtube interview with Navigator CEO shared a couple weeks ago, we are still 9 mths to a year away from any definitive deal being signed with a customer, and then a further 3 years to operationalisation. Conservatively, this venture, if it does indeed materialise, will only see "first C02" in mid 2027, still a good 4 years away. Plus, I do not believe this will be a particularly highly profitable venture like FPSO given the smaller capex outlay. Where Naviagtor and Bumi will need to aim for, over the longer term, would be to have multiple clusters, as they'll have higher margins with a larger volume of said business. Still, a step in the right direction, but with limited near to medium term financial upside.

Robert is the technical guy, so there you go!

@Felix, in the AGM the CEO said the FPSO is ready for first oil, with the delay coming from the subsea contractors side. Quite certain there was no mention of a delay in onshore facilities.

@Felix888, I don't think so. Sapura's role is relating to the CPP (fixed platform), not FPSO (floating platform).

@jasongks

My friend, you are foolish to think this forum has even an iota of impact on the market direction (except maybe in rare circumstances when market-moving insider information is shared, such as the resumption of Kraken oil production more than a week before Bumi Armada announced it).

Pessimism is as much welcomed, if not more welcomed, than optimism. Especially if it is substantiated.

Please do not listen to unfounded rumours. As of this point in time, production remains at between 50% - 60% on a single train. The second train operation has yet to resume, it's expected to happen in the coming 2 to 4 weeks.

I've yet to watch it, if any interesting tidbit, please share!

https://www.youtube.com/watch?v=pWvLMp8W3RE

Navigator Holdings CEO, Mads Peter Zacho, Discusses the Bluestreak CO2 Joint Venture - June 30, 2023

Anybody have the full article on Kraken from UpstreamOnline?

https://www.upstreamonline.com/exclusive/enquest-and-bumi-armada-working-hard-to-return-to-normal-at-north-sea-oilfield/2-1-1475735

EnQuest and Bumi Armada working hard to return to normal at North Sea oilfield

UK operator EnQuest has acknowledged there was an operational fault that forced the shutdown of the Kraken offshore oilfield in the North Sea and that it is working to return to pre-shutdown levels of production.

The field was shut down in late May following a sudden failure of hydraulic submersible pump (HSP) transformers on the Armada Kraken floating production, storage and offloading vessel, as reported by the FPSO’s owner Bumi Armada on 2 June.

https://www.upstreamonline.com/exclusive/enquest-and-bumi-armada-working-hard-to-return-to-normal-at-north-sea-oilfield/2-1-1475735

@Robert, to the best of my knowledge, it is imminent, by the end of July. As to when exactly, not even my source knows.

Then again Patrick is in KL for international conferences. Highly likely the contract would be signed in France or Angola instead.

TotalEnergies big boss is in town, wonder if they will sign anything with Bumi Armada

Have a great weekend all! Let's hope next week is a better week. Anticipating Cameia FPSO announcement anything within the next month now.

Questions regarding Bluestreaks JV:

1) Is this related to the recent licensing round in the UK, where 20 licenses were awarded to 12 companies?

The Bluestreak JV was formed to align with the licensing round of the storage licenses by NSTA.

2) Has the JV secured one of these licenses?

The JV is not a storage company and therefore did not apply for one of the licenses, but is rather a non-pipeline transportation and injection solution with the intention of engaging the awardees of the storage licenses.

3) Is my understanding correct that Navigator will be responsible for the shuttle tankers while the JV partner would be responsible for the floating carbon storage and injection unit?

Yes, Navigator would design, build, and operate the shuttle tankers while Bumi Armada Berhad would handle the floating carbon storage and injection unit.

4) When is / are commercial agreements expected to be signed?

Commercial discussions are still ongoing and involving several stakeholders in the CO2 emitting/capture, transportation, and storage infrastructure process. FID likely later this year/early 2024.