PETALING JAYA: Bumi Armada Bhd’s wholly-owned subsidiary Armada Oyo Ltd (AOL) has entered into an agreement with Century Energy Services Ltd (CESL) for the sale of its Armada Perdana floating production storage & offloading (FSPO) for US$40 million (RM167.18 million).
CESL plans to redeploy the vessel to another field in Nigeria.
The purchase price will be settled via a US$5.5 million (RM23 million) deposit, of which US$4.5 million has been paid by CESL to AOL and the remaining to be payable before the end of 2019. A sum of US$11.6 million will be fully settled against amounts owed by companies within the Bumi Armada group to CESL as at July 31, 2019.
In addition, additional vessel expenses from August 1, 2019 up to the date the vessel is delivered to CESL will be set off against the purchase price. Another US$5 million will be paid to the group on or before the date of six months after the delivery date or when oil is first produced in the field, whichever is earlier. The remaining balance of US$17.9 million will be payable within two years from the first oil date.
The group will hold a mortgage over the Armada Perdana FPSO to secure the unpaid portion of the purchase price.
“The conclusion of the sale of the Armada Perdana FPSO will absolve the group from its demobilisation obligations,” Bumi Armada said.
The group will recognise the unpaid portions of the purchase price as and when funds are received from CESL. The gain to be recognised in the financial statements for the financial year ending Dec 31, 2019 will be US$5.0 million.
The Armada Perdana FPSO has been out of contract in Nigeria since its previous charterer, Erin Petroleum Nigeria Ltd, along with its parent company Erin Energy Corporation, filed for bankruptcy under Chapter 11 of the US Bankruptcy Code in April 2018.
source https://www.thesundaily.my/business/bumi-armada-sells-armada-perdana-fspo-for-us-40m-HY1346810
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