Posted by klee > 2023-06-15 18:58 | Report Abuse

Bursa is fcuked,armada unfortunately is fcuked too,that makes doubly fcuked,even good cos got dumped,what to say problematic ones.

Posted by Kakume > 2023-06-15 19:37 | Report Abuse

Rest assured Enquest and Bumi both are fire fighting now like tbere is no tomorrow. You thinn both will take this easy and sleep well? The problem is too big to solve in shoet time, this is not changing a scree, but massive equipments, no news is bad news, until then we wait and hope, it can be 3 days, or 3 months, but this is already 3 weeks, it must be difficult one, means it could be many weeks or months away.

Posted by sense maker > 2023-06-15 19:37 | Report Abuse

Armada is RM1.7b off its peak of RM0.73 achieved less than 2 months ago. Its long-time shareholders realised belatedly that a transformer issue can cost so much. Pain.

Posted by David Gunter > 2023-06-15 20:04 | Report Abuse

Lol

Posted by Hotstuff > 2023-06-15 20:12 |

Post removed.Why?

Posted by Macgyver11 > 2023-06-15 20:20 | Report Abuse

Why angry..you get stuck ha in high price..I been here messaging since 2019, where are you then...LOL this is funny.



luckyfrankie

Many funny ppl here as if they are the fortune teller, tonite rain or not he also dont know, now can tell you he can ensure drop below 40C, i refer this to Macgyver11, if tommorrow turn the other way, then he will go missing for next few trading day

Posted by Robert Waters > 2023-06-15 20:33 | Report Abuse

No news is bad news during shut in.
No news is good news when there is already production going on.

I think public worries now that the last transformer will break. Quiet is good.

Posted by Robert Waters > 2023-06-15 20:35 | Report Abuse

I do not know future performance of Armada.
I do not know if Kraken will achieve 95% efficiency next quarters.

But I am confident transformer issue will be solved. It is now very visible to investors and management.

Prepare ourselves for something else.

Posted by Macgyver11 > 2023-06-15 21:42 | Report Abuse

Captain Armada tarak bagus. Must call captain Jack sparrow.

Posted by Felix888 > 2023-06-15 21:45 | Report Abuse

In dia Captain Jack Sparrow. Tomorrow flying!!

https://youtu.be/vdBEuLG21UE

Posted by Moneymore > 2023-06-15 22:05 | Report Abuse

Everything will be fixed just a matter of time and cost. It is material that is why BA made announcement. Until next announcement you can besure that ther are fire fighting 24x7, after 3 weeks no news means very very bad.

Posted by David Gunter > 2023-06-15 22:14 | Report Abuse

Rishi Sunak has ordered a spare rig to help

Posted by Just88 > 2023-06-15 22:26 | Report Abuse

BA will wait until the end of maintenance period to make announcement. Only 50% production during the 2 x 10 days maintenance periods.

Posted by David Gunter > 2023-06-16 06:35 | Report Abuse

Lol good morning Crystal ball experts

Posted by Macgyver11 > 2023-06-16 08:08 | Report Abuse

Yeah! Captain Jack sparrow sdh mari...yes!
Armada terbang ke bulan hari ini

Posted by Kakume > 2023-06-16 08:27 | Report Abuse

No news is = no progress, still fire fighting to figure out how to repair this giant massive equipment that takes 6-12 months to order, long lead time. Soon, EnQuest will announce material impact. Price to re-test support 0.40. Sit tight. Only 10% down from 0.44, not too far. Unless the repair is really going to take 6 months, then 0.35.

Posted by MM78 > 2023-06-16 09:16 | Report Abuse

@ Robert Walter posting "

1. Transformers were running hot so people kept door open, and some posters peeled off the wall due to being warped by heat
2. There was an annoying buzzing sound and clicking, much louder than in the other electrical rooms
3. You could sense the sour 'transformer' smell closer to the units. By the vents of the transformer enclosure, you could nearly taste it, not just smell.
4. During pump switching smoke was observed
5. One transformer failed but nothing was done about it. 'One off event,' they said.
6. Eventually an operator expressed his concern about critical equipment health. Unit started to give trouble and malfunction warning light. Manager asked him what he was planning to do about it. And he said meeting was for productive discussion, not for complaining. The guy learnt to keep quiet.
Based on the above , we need big tummies to contain the worries of Bumi Armada's lack of update of Kraken hiccup .
Robert, can you please clarify where do you get the information of transformers situations ?
Thanks

Posted by Kakume > 2023-06-16 09:57 | Report Abuse

We hope BA leanred from Kraken Projecy since 2016, how not to avoid the same mistake, poor project management, cost them too much, this failure still haunting them yoday after 6 years, with more equipment failures unexpectedly, good that they slow down new FPSO project, to avoid same mistake, that is how Yinson took over most of new FPSO in last 4 years.

Posted by Kakume > 2023-06-16 09:59 | Report Abuse

Winning project is easy, get the commercial competitive, but to deliver project successfully is completely different game. You need good people, do they have strong project delivery team like the China man company mindset? Until then we hope more news coming soon.

Posted by CyrusQ > 2023-06-16 12:13 | Report Abuse

What's the status here ? Armada going bankrupt or what why like many ppl here huraa huuraa

Posted by CyrusQ > 2023-06-16 12:15 | Report Abuse

going toward 10 cent ?

Posted by BILLC > 2023-06-16 12:16 | Report Abuse

10 sen impossible,,,30 sen maybe,,,

Posted by MM78 > 2023-06-16 12:22 | Report Abuse

It is more assuring to stare at your own crystal balls even if someone can bang their hairy chests telling you potential Armada share price by next week. Kraken is not sinking yet but an FPSO with a transformer issue.

Posted by Robert Waters > 2023-06-16 12:47 | Report Abuse

@MM78,
My post is fully made up. It is what I THINK that happened. However, it is based on my observation of Oil and Gas industry and on a prevailing safety theory. For every one substantial (material) incident, there are 10+ minor ones that had been ignored. So in a way I am glad that the 'cat is out of the bag' and company now has to step up and fix problem. Good for us, long term.

______________________________________
But those things do not happen without warning signs. I think that ...
1. Transformers were running hot ....

Posted by nikicheong > 2023-06-16 12:47 | Report Abuse

umi Armada Berhad (“Bumi Armada” or the “Company”) wishes to announce that its jointly controlled entity, SP Armada Oil Exploration Private Limited (“SPAOEPL”) recently received notification from Oil and Natural Gas Corporation Limited ("ONGC") of India, about its intention to extend the charter hire of a Floating Production, Storage and Offloading Vessel ("Armada Sterling II FPSO") for one year from the expiry of the present firm time-charter. The value of the contract extension is approximately US$43m.



Under the original contract signed between ONGC and SPAOEPL on 13 March 2013, Armada Sterling II FPSO was chartered by ONGC to operate in the ONGC Cluster-7 field located about 210km off the west coast of Mumbai, India under a nine-year firm time-charter, with seven annual extension options. The original nine-year firm time-charter will expire on 7 March 2024.



SPAOEPL is a 49% less 1 share: 51% plus 1 share joint venture between Bumi Armada and Shapoorji Pallonji Energy Private Limited (formerly known as Shapoorji Pallonji Oil and Gas Private Limited) of India. ONGC is India's state-owned oil company listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India Ltd (NSE).



Financial Effects



The contract extension is expected to contribute positively to the future earnings of Bumi Armada Group.



Risks Associated with the Contract



The risks associated with the contract extension are normal operational risks which can be mitigated through Bumi Armada's system of asset management and business controls.



Directors' and Major Shareholders' Interest



None of the Directors and/or major shareholders of the Company or persons connected with them have any interest, direct or indirect in the said contract extension.



This announcement is dated 16 June 2023.

Posted by Felix888 > 2023-06-16 12:52 | Report Abuse

Hahaha really got FPSO contract extension on yearly basis. 🤣

Posted by Felix888 > 2023-06-16 12:52 | Report Abuse

I3lurker must be happy with this example.

Posted by Felix888 > 2023-06-16 12:54 | Report Abuse

Not US$43m meih Niki?

Posted by nikicheong > 2023-06-16 12:56 | Report Abuse

This is a mildly positive development. Question remains why just one year, why not 7 years. Perhaps it is risk management from ONGC to protect itself from low oil prices.

Regardless, anything above the firm charter period is usually a bonus. But at $43mil per annum, the effective apportionment to Bumi Armada will be around $21mil (49% stake in the JV) but there will be no impact to topline as JV revenue is not consolidated at the Group level.

Extensions usually have a profit margin >30% as the vessel would be almost fully depreciated and the financing fully paid off, so conservatively this would contribute around 1/3 * $21mil = $7mil to Bumi Armada's bottomline for that one year extension period (roughly RM32mil at today's exchange rate).

Also, Bumi Armada will get a better rate for yearly extensions. There is usually a discount provided for a multi-year extension. The latter however is "safer" as it provides a longer-term earnings visibility.

Posted by nikicheong > 2023-06-16 12:57 | Report Abuse

"The contract is for a fixed period of nine years with an extension option of an additional seven years on yearly basis. The contract is valued at approximately USD 740 million with an additional USD 340 million for the optional extension period."

https://www.offshore-energy.biz/ongc-bumi-armada-in-740-mln-fpso-charter-deal/#:~:text=The%20contract%20is%20valued%20at,western%20coast%20of%20Mumbai%2C%20India.

The $43mil for one year extension is slightly lower than the original extension option of $340mil for 7 years (i.e. $48mil per year). Might be due to the exchange rate fluctuations since 2013, as the contract award by ONGC s usually based on Indian Rupees.

Posted by nikicheong > 2023-06-16 12:58 | Report Abuse

@Felix, my bad and I have corrected my calculations.

Posted by nikicheong > 2023-06-16 13:04 | Report Abuse

This is quite a minor "win", each one-year extension for the Armada Sterling II is worth roughly 0.5 - 0.6 sen / share. But I'll take this win, hopefully a smaller win leading to larger wins in the near future (wink offshore carbon storage and injection award, wink Cameia FPSO award)

Posted by Mariomaster84 > 2023-06-16 13:33 | Report Abuse

https://www.orientaldaily.com.my/news/business/2023/06/16/573321

Posted by linheng > 2023-06-16 13:49 | Report Abuse

KUALA LUMPUR: Bumi Armada Bhd's jointly controlled entity SP Armada oil Exploration Private Limited (SPAOEPL) has received notification from India's state-owned oil firm, Oil and Natural Gas Corp Ltd (ONGC), about its intention to extend the charter hire of the Armada Sterling II floating, production, storage and offloading (FPSO) vessel for one year.

In a filing with Bursa Malaysia, the group said the value of the contract extension is about US$43mil (RM198.65mil).

Under the original contract signed between ONGC and SPAOEPL on 13 March 2013, Armada Sterling II FPSO was chartered by ONGC to operate in the ONGC Cluster-7 field located about 210km off the west coast of Mumbai, India, under a nine-year firm time-charter, with seven annual extension options.

The original nine-year firm time-charter will expire on March 7, 2024.

Posted by nikicheong > 2023-06-16 14:15 | Report Abuse

Update to my post dated 2023-02-27 11:51

Catalysts achieved:

- Confirmation of sale or scrapping of Armada Claire FPSO (sold for USD20m)
- Full divestment of the remaining offshore vessel (sold for ~USD15m)
- Contract extension of Armada Sterling II (1-year extension worth USD43m secured)

New catalyst:

- To repair the issues with the Kraken FPSO's HSP transformers so the FPSO can return to full operational capacity (Kraken FPSO presently only running at 50% capacity)

Posted by ValueInvestor888 > 2023-06-16 14:16 | Report Abuse

mkt wants update of Kraken lah...

Posted by nikicheong > 2023-06-16 14:18 | Report Abuse

Potential Bumi Armada Re-rating catalysts (updated 16 June 2023):

New wins:

1) Award of Cameia FPSO project in Angola from TotalEnergies - This is only an EPC contract and will only sustain earnings for 2-3 years. This is NOT a long-term charter contract
2) 1 Minor FPSO contract win (either a small/medium scale FPSO 100% owned) - Active bids in Tuna field (Indonesia), Palok field (Mexico), Salam-Patawali (Malaysia)
3) 1 Major FPSO contract win (large scale FPSO, likely with a JV partner) - Unlikely to be soon as there are no known large scale bids from Bumi Armada, but possibilities exist in West Africa / South America
4) Finalization of the Mumbai Port FSRU project
5) New contract win for the 2 SC vessels in the Caspian Sea and 1 JV-owned SC vessel in Indonesia. Potential for new wins for the Caspian Sea vessels as flurry of work in the region due to high oil price environment. All 3 vessels as at 31 Dec 2022 are laid up
6) New contract award relating to a floating carbon storage and injection vessel

Green energy:
1) "Green energy" initiatives for future FPSO/non-FPSO wins (e.g. zero flaring or fully electrified FPSO)
2) Decarbonisation for existing fleet of FPSO
3) Diversification into floating CCS and other "green" structures materialise

Business as usual:
1) First oil achievement and then full acceptance of Armada Sterling V FPSO by ONGC at the 98/2 field in India
2) To repair the issues with the Kraken FPSO's HSP transformers so the FPSO can return to full operational capacity (Kraken FPSO presently only running at 50% capacity)

Contract extensions:
1) Confirmation of contract extension for Armada TGT FPSO in Vietnam - Might only be announced in Q4 2024, but it's all but certain the contract will be extended as new wells are still being drilled in the aged TGT field

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

Note: All the above comes from my own research. Let me know if I've missed out on anything. I maintain that the Q4 2022 results, while extremely solid, were wholly "unexciting". We need positive developments that would enhance the long-term wellbeing of the company, only this will ultimately push the share price to higher levels.

Posted by David Gunter > 2023-06-16 14:19 | Report Abuse

I waiting at 0.05 Sen

Posted by luckyfrankie > 2023-06-16 15:19 | Report Abuse

Nusense spectaculator

Posted by MM78 > 2023-06-16 15:30 | Report Abuse

@Robert Water
Thank for your clarifications.

Posted by MM78 > 2023-06-16 15:31 | Report Abuse

Thanks Niki for sharing your research and always helpful to many.

Posted by vespa > 2023-06-16 15:43 | Report Abuse

Kudos Niki for your time and input. It drowns out the noise

Posted by OrlandoOilSemiconIoT > 2023-06-16 16:16 | Report Abuse

Kraken announcement ain't coming anytime
soon...

Better make yourself comfortable... change into pajama or negligee

Posted by Russel > 2023-06-16 16:22 | Report Abuse

No announcement, no volume, no party!

Posted by Robert Waters > 2023-06-16 17:15 | Report Abuse

When you are down and out comes another trouble. Government regulator ...
-----------------------------

The UK’s Health & Safety Executive (HSE) is examining the events that led to the shutdown several weeks ago of the Kraken offshore oilfield in the UK North Sea, which field operator EnQuest has still not acknowledged.

An HSE spokesperson told Upstream the agency is aware of the Kraken incident and is “currently looking into the circumstances leading to the shutdown”.

Posted by David Gunter > 2023-06-16 17:20 | Report Abuse

So what? Lol more BS

Posted by RISK8888 > 2023-06-16 19:54 | Report Abuse

https://www.upstreamonline.com/exclusive/kraken-fpso-update-uk-safety-regulator-checking-events-that-led-to-shutdown/2-1-1468120

Posted by Gabriel Khoo > 2023-06-16 20:02 | Report Abuse

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EXCLUSIVE See all articles

EnQuest chief executive: Amjad BseisuPhoto: ENQUEST
Kraken FPSO update: UK safety regulator checking events that led to shutdown
All quiet from field operator EnQuest on the plans for restoring production

16 June 2023 3:01 GMT UPDATED 16 June 2023 6:55 GMT
By Russell Searancke in Oslo
The UK’s Health & Safety Executive (HSE) is examining the events that led to the shutdown several weeks ago of the Kraken offshore oilfield in the UK North Sea, which field operator EnQuest has still not acknowledged.

An HSE spokesperson told Upstream the agency is aware of the Kraken incident and is “currently looking into the circumstances leading to the shutdown”.


Critical topsides equipment failure forces shut-in of UK FPSO
Read more
The Kraken field had, according to EnQuest, performed well during the fourth quarter of 2022, during which time it passed the milestone of 60 million barrels of oil (gross) produced since start-up in mid-2017, and delivered “top-quartile production efficiency of 93% and production at the top end of its guidance range”.

However, a sudden failure of hydraulic submersible pump (HSP) transformers on the Armada Kraken floating production, storage and offloading vessel forced the field to be shut down, according to the FPSO's owner Bumi Armada, which leases the vessel to EnQuest under a bareboat charter contract.

The Malaysian FPSO operator warned on 2 June that the financial impact of the incident was “expected to be material for Bumi Armada” due to the uncertainties around future operations.

Upstream asked EnQuest to acknowledge the incident and to provide a forward plan, but the UK company said it had no comment to offer.

Likewise, Bumi Armada was not ready to provide an update regarding the Kraken situation.

The forward plan
According to well-placed industry sources, the FPSO has four HSP transformers, which are essential in the production process of the thick viscous oil from Kraken.

Only one of those HSPs is available for use, and the other three need to be replaced.

The focus is therefore on bringing on restricted production via the one available HSP, and trying to convert a water injection pump to function as an HSP, said sources.

Some sources suggested that limited production had in fact been generated, but this could not be confirmed.

The reasons for the sudden failure of the HSPs could not be confirmed either, but several industry experts said EnQuest and Bumi Armada had pushed the processing equipment to its limits.

Posted by Moneymore > 2023-06-16 22:38 | Report Abuse

Three pump need replacement , lead time 6 months, it is going to be very bad for BA. No news = no progress in trouble shooting, IR said nothing good better don’t comment to drag down already dying share price. EnQ wil annouce soon that it is finally material for them

Posted by Moneymore > 2023-06-16 22:45 | Report Abuse

It is unusual to have such massive failure that, UK HSE is conducting the investigation to find out if any mismanagement in Operations and Maintenance guidelines. That is how serious this matter to UK Government.