If it's a FLNG with Bumi Armada being the leading partner, that's a big win. Let's wait for more details.

Not sure if this means Bumi Armada is going to develop and operate a FLNG + LNG carrier. Not clear on the structure of the JV as well. Unsure of the potential financial impact.

What is good about this is that the Armada Sterling III FPSO, whose firm charter period ends in 2027, will continue to see charter extensions for a long time to come.

I wonder if TheEdge jumped the gun, there is not yet any announcement to Bursa on this, no press release on the Bumi Armada website too.

KUALA LUMPUR (Sept 13): Bumi Armada Bhd has signed a non-binding agreement with PT Pertamina International Shipping and PT Davenergy Mulia Perkasa (DMP), an Indonesian natural gas trading company, for the development and commercialisation of liquefied natural gas (LNG) from the Madura gas field.

In a statement on Wednesday, Bumi Armada said the agreement would outline the key principles to develop and commercialise LNG from the Madura gas field and its surrounding fields.

Pertamina International Shipping is the shipping and marine logistics sub holding of Indonesia’s state-owned energy company Pertamina.


It said preliminary discussions have been initiated with several potential off-taker clients and the first shipment of LNG is anticipated to take place three years after making the final investment decision.

Bumi Armada chief executive officer Gary Christenson said: “We are excited to collaborate with Pertamina International Shipping and DMP in this opportunity to bring sustainable and scalable solutions to reduce carbon emissions in Indonesia, which is also in line with Bumi Armada’s recently launched decarbonisation agenda to achieve net zero by 2050. This collaboration is a testament to our strong commitment towards providing the best decarbonisation solutions globally”.

Bumi Armada and Pertamina International Shipping are expected to collaborate, utilising their respective expertise and experience, in the development of a floating natural gas liquefaction and storage facility.

The collaboration aims to design, engineer, construct, install, commission, hook up and operate the facility, along with an LNG carrier. The parties also intend to transport LNG to consumers located in areas that lack access to clean energy sources.

Bumi Armada shares were 1.9% or one sen higher at 53 sen at time of writing on Wednesday, translating to a market capitalisation of over RM3.1 billion.

@Felix888, the USD930mil loan is a "bridge loan" for the construction period. It's a lumpsum amount to be repaid.

The new USD948mil loan that has been drawn down to repay the bridge loan of USD930mil is a "project financing loan". It is to be repaid on a monthly basis over the firm charter period. Think of it like your car loan, once disbursement done, from next month onwards you have to repay a monthly installment.

This might also mean that Armada Sterling V has been able to secure standby rates from ONGC, otherwise without income how to start servicing the loan.

Bumi Armada Berhad ("BAB") refers to the disclosure in its quarterly announcement for the quarter ended 30 June 2023 regarding its 30% associated company, Armada 98/2 Pte Ltd ("A98/2"), and wishes to announce that A98/2 has successfully achieved financial close under its long term project financing facility of USD948 million ("Project Facility").

The disbursement proceeds from the Project Facility have been utilised by A98/2 to fully repay its USD930 million bridge loan facility.

As at the date of this announcement, the ASV FPSO is awaiting hydrocarbons from ONGC to conduct the necessary acceptance tests to achieve final acceptance.

The announcement is dated 12 September 2023.

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

Mildly positive news, means the project financiers are satisfied that first oil should be here soon and that other than the delay in first oil, everything else is in place and ready to go.

@KML most likely same rate, as this is only an extension. The loan has been fully repaid, the vessel has been significantly depreciated. So the margins are a lot higher. It's very normal for extension contracts to fetch lower dayrates as a result.

I have received confirmation from Pharos Energy's IR that Bumi Armada have submitted a proposal for the extension of the lease of the Armada TGT FPSO to Pharos Energy and they are currently in the midst of negotiating the extension. A formal announcement would be made once the extension is confirmed.

ABS Awards AIP for Bumi Armada’s Pioneering Carbon Storage and Injection Vessel

ABS has awarded Approval in Principle (AIP) for Bumi Armada’s pioneering design for a floating carbon storage and injection unit (FCSIU).

Bumi Armada’s FCSIU concept is a floating terminal capable of storing and injecting liquified carbon dioxide (LCO2) into depleted oil and gas fields or aquifers. This novel concept incorporates the ability to accept LCO2 deliveries in an offshore setting, the flexibility to manage LCO2 at low or medium pressure, the provision of LCO2 buffer storage and the preparation of LCO2 for sequestration - permanent storage of CO2 deep beneath the seabed.

The FCSIU can receive LCO2 from various sources, such as electricity generation, manufacturing and construction, offering a new solution for reducing CO2 emissions from these industries.

The AIP is applicable to either a new build or a converted donor carrier, with smaller tanks to optimize the cargo space layout.

“Carbon capture and reinjection in depleted fields is a promising technology for reducing greenhouse gas emissions, and it is likely that this process will become more widespread and play an increasingly important role in the transition to a low-carbon economy. ABS is a leader in the field and is committed to supporting the safe development and adoption of the technology,” said John McDonald, ABS President and Chief Operating Officer.

Gary Christenson, Bumi Armada’s Chief Executive Officer, said, “We are excited to bring sustainable and scalable solutions to reduce carbon emissions, which is also in line with Bumi Armada’s recently launched decarbonization agenda to achieve net zero by 2050. This solution is a testament to our strong commitment towards providing the best decarbonization solutions globally.”

https://news.cision.com/american-bureau-of-shipping/r/abs-awards-aip-for-bumi-armada-s-pioneering-carbon-storage-and-injection-vessel,c3830219

State-run Oil and Natural Gas Corporation (ONGC) on Tuesday said that crude oil production from its KG-DWN-98/2 block in the Krishna-Godavari basin is expected to hit 10,000 barrels per day (b/d) by November 2023.

Besides, the output from the block will double to 20,000 b/d by the end of the current financial year. It is also targeting to reach an output of 45,000 b/d by FY25, the oil and gas exploration and production (E&P) major said.

https://www.reuters.com/world/india/indias-ongc-invest-242-bln-meet-net-zero-emissions-goal-2023-08-29/

https://www.petrowatch.com/synopsis.php?artId=21067

Indian O&G site mentions: "ONGC is supremely confident it can meet its latest October 2023 deadline to begin first oil production from the deepwater Cluster-2 fields"

https://www.xm.com/research/markets/allNews/reuters/indias-ongc-sees-oil-output-from-east-coast-deep-waters-in-octnov-53627159

"INDIA ONGC EXEC: INTEND TO COMMENCE OIL PRODUCTION FROM DEEP WATER FIELD IN THE EAST COAST BLOCK IN OCT-NOV"

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

I'll see it when I believe it, but the difference this time seems to be that even Bumi Armada specifically mentioned October 2023 as the likely first oil date. In the past, they never mentioned a particular month.

Bumi Armada's future looks lackluster at the moment. No major FPSO project in the pipeline, which is the biggest worry. Of course , there might be some FPSO bids/tenders ongoing that's not being spoken about in the market and a sudden announcement of a contract win cannot be discounted, though it also cannot be hoped for.

The UOB guy is referring to this: https://www.enquest.com/fileadmin/content/operations/ICOP_PDFs/EnQ_ICOP_Kraken_2021_07_F.pdf

-----------

From the UOB Report:

Kraken’s Infrastructure Code Of Practice (ICOP) document, a key document behind our SELL downgrade in June, shows that all of the FPSO’s processing equipment (not just the HSP transformers) were expected to reach critical ullage constraint from 2023. In our view, for BAB to avoid another unplanned FPSO breakdown, the more prudent action must involve “diagnosing” the entire FPSO’s processing topsides, and we understand that this is not necessarily in its current plans."

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

I think it's a whole bunch of nonsense. This document has been published sometime last year. It's simply talking about capacity constraints as a part of the normal BAU and nothing out of the ordinary. If anything, it's in the FPSO operators best interest to stretch capacity to the maximum possible before replacing/refurbishing, to eke out every last dollar. Of course, it's a balancing act, take it too far, and you're faced with shut-ins. As far as I see this, seasoned FPSO operators such as Bumi Armada would already have a plan for tackling capacity constraints as they arise. Ultimately, they want to hit >95% production efficiency for those sweet, sweet bonus payout.

In Q3 2023, we should still see a hit of around RM40mil due to the production deficit in July and early August, before the FPSO was back to 100% production.

1) With Kraken back online, we're looking at around RM150-160mil net profit per quarter in Q4 2023 (roughly 2.50 sen to 2.65 sen per share).

2) This is excluding the income expected from the Armada Sterling V, which has been touted to be around RM100mil - RM130mil per annum. Conservatively, lets take RM100mil per annum net profit, or RM25mil per quarter (equivalent to 0.40 sen per share), and discount it by a further 40% to account for production issues or other challenges. That's still RM60mil per annum, or RM15mil per quarter (which would translate to 0.25 sen per share).

Long story short, if everything goes according to BAU, Armada Sterling V should contribute at least 0.40 sen per share per quarter, but if we anticipate production challenges, we can pencil in a lower 0.25 sen per share to account for those challenges.

3) At the same time, the two subsea construction (SC) vessels in the Caspian Sea are idle. By my estimates, every quarter of work for each vessel will contribute roughly 0.25 sen per share respectively per quarter. This is because the vessels incur significantly fixed costs just staying idle (namely depreciation expenses), and then of course taking into account the profit margin when a contract is awarded.

4) Finally, JV income was lower this quarter by about RM10mil from the expected. So when this normalizes it should also boost profits higher.

---------

Long story short, after accounting for items 1 - 4 above, assuming all are operational in Q1 2024, we could see up to a quarterly net profit of around RM210mil to RM220mil. Even if the SC vessels remain idle, we should still see quarterly net profits upwards of RM180mil.

Of course, all these are not taking into account any potential new contract wins etc. I for one am no longer holding my breath for that!

https://rfs.cgs-cimb.com/api/download?file=6b75fbd3-73ef-428a-93ce-39ae73086398

Thanks uncle!

Anyone have the report from RHB, UOB or CIMB, pls share

There appears to be around a RM105m hit to the net profit from Kraken in Q2 2023 (around RM65mil from loss of revenue and RM40mil from cost of repairs).

In Q3 2023, I expect another RM25m to RM30m hit to the net profit from this.

I’m on a holiday, not had a chance to take an in-depth look yet.

On the face of it, results are mildly positive as there are no impairments booked for Kraken, means long-term nothing has changed following the return to 100% production.

Obviously the impact in Q2 is a lot more significant, as there was nearly one month of zero production. In Q3 the impact should be lower as there was 3 weeks at 60% and another 3 weeks at 90% production levels.

Another positive is Bumi Armada mentioned Oct 2023 for the expected date for first oil for Armada Sterling V. Let’s see if it happens.

I'm glad that we can now firmly put the Kraken troubles behind us, but it's worrying that there are so many "bad news":

1) No Cameia FPSO award (which was a dead-certain lock not too long ago)
2) Further delay to Armada Sterling V first oil date, and uncertain if there will be any compensation due to the Shapoorji-Bumi Armada JV
3) No Mumbai FSRU award
4) No firm award / details on the Floating Carbon Storage Injection Unit (FCSIU)

Only minor positive has been 1 year extension awarded to Armada Sterling II a few weeks ago.

Reference is made to the announcements made by Bumi Armada Berhad ("Bumi Armada") on 2 June 2023, 21 June 2023 and 20 July 2023 respectively in relation to the unplanned shutdown of the Armada Kraken FPSO ("Kraken FPSO") owned by Bumi Armada’s wholly owned subsidiary, Armada Kraken Pte Ltd.

Bumi Armada wishes to announce that an additional HSP transformer has been reconditioned from the failed HSP transformer units. Following successful installation of this second reconditioned HSP transformer on the Armada Kraken FPSO, the vessel's operational performance has now been restored to pre-shutdown levels.

With the current three (3) working HSP transformers, redundancy is expected to be restored when a fourth new HSP transformer, which is estimated to arrive in September, is successfully installed on the Armada Kraken FPSO.

This announcement is dated 9 August 2023.

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3375389

Bloody hell! Why am I not surprised. Indian nationals are known to overpromise and underdeliver.

First oil from Oil & Natural Gas Corporation’s (ONGC's) flagship KG-DWN-98/2 deepwater project offshore India is poised for further delays after the field’s critical subsea infrastructure recently suffered damage.

The $5 billion Cluster-2 development off the country's east coast will be developed by 26 subsea wells feeding up to 60,000 barrels per day to a floating production, storage and offloading...

https://www.upstreamonline.com/exclusive/subsea-damage-delays-ongc-5-billion-flagship-deepwater-project/2-1-1496065

HSP transformer installation successfully completed and operational on the FPSO. Immediate results are encouraging. Might still take a few days to stabilise at 100% production rates.

An announcement should be due soon.

If successful, we'll get an official announcement from Bumi Armada either tomorrow or latest, by Wednesday lunch time.

We hope to reinstate an additional HSP transformer unit to service in the next 24 hours, which should enable full production to resume at Kraken.

@KML889, you're missing the point. One quarter of the FCF will evaporate when Kraken firm charter period ends in 2025 (assuming it then takes up the lease options). One half of the FCF will evaporate in 2030 when Olombendo firm charter ends (assuming options are exercised). Replenishments to the orderbook need to happen fast!

Managed to get some information from someone in Bumi Armada. The reason is purely down to costing, Bumi Armada was unable to deliver at the budget set by TotalEnergies.

Yes Cameia FPSO is 100% a dead in the water for Bumi Armada. Search is ongoing for a replacement.

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.