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Malaysia : BUMI Armada Bhd secures LOIA to proceed with North Sea FPSO CONTRACT
Publish Date : 19-Nov-2013
Bumi Armada Bhd got a letter of interim agreement (LOIA) regarding a contract for the supply and operations of a floating production, storage and offloading vessel (FPSO) to operate in the Kraken field in the UK sector of the North Sea. The LOIA allows Bumi Armada to proceed with critical activities and the procurement of long lead items, ahead of the final award, to be signed before Nov 30, 2013.
Bumi Armada said EnQuest Heather Ltd, EnQuest ENS Ltd, First Oil and Gas Ltd, Nautical Petroleum Ltd and Nautical Petroleum AG had, via the LOIA, confirmed their intention to award the FPSO contract to its wholly-owned subsidiary, Bumi Armada UK Ltd. Enquest Heather and EnQuest ENS are 100 per cent-owned units of EnQuest Plc, which owns 60 per cent of Kraken oil field.
Nautical Petroleum Ltd and Nautical Petroleum AG are fully-owned units of Cairn Energy Plc that has 25 per cent of Kraken oil field and First Oil Plc has the balance of 15 per cent in the Kraken field. Kraken is one of the biggest current development projects in the UK North Sea with an expected production life of up to 25 years.
Bumi Armada Chief Executive Officer and Executive Director Hassan Basma said the North Sea includes major reserves that have yet to be developed. "The North Sea contains western Europe's largest oil and natural gas reserves and is one of the world's key non-OPEC (Organisation of the Petroleum Exporting Countries) producing regions. We expect that the heavy oil production technology applied in the Kraken FPSO will unlock similar heavy oil reserves in the North Sea and other parts of the world," he said.
The first oil was expected in 2016/2017, he added.
