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JAKARTA (rambuenergy.com) – Malaysia’s Bumi Armada Berhad and its wholly owned subsidiary Bumi Armada Offshore Holdings Limited (BAOHL) have signed shareholders agreement with Shapoorji Pallonji (SPCL) and Shapoorji Pallonji International FZE (SPINT) to form a joint venture company.
The newly established JV have ageed to jointly invest in Armada Madura EPC Ltd to undertake the engineering, design, acquisition, conversion, development, construction, fitting out, completition, mobilization, transportation, installation, hook-up, testing, commission and integration of the floating production, storage and offloading (FPSO) vessel facility.
The FPSO will be delivered to PT Armada Gema Nusantara, a joint venture company of BAOHL and PT Gema Marine Service, to be deployed in the Madura BD Field in the Madura Strait. Subject to the terms of FPSO SPA, Armada Madura agrees to sell and PT AGN agrees to purchase from Armada Madura the FPSO, with an aggregate purchase price of US$ 500 million.
In December last year, AGN has secured a contract from Husky-CNOOC Madura Limited (HCML) worth US$1.18 billion for the provision of an FPSO facility to be deployed in the field.
The charter contract is for a firm charter period of 10 years with options of five annual extension. The FPSO is expected to commence operations at the field in the first quarter of 2017.
BAOHL and SPIT have agreed to hold a 50 percent economic interest respectively and be responsible for 50 percent of the funding obligations in developing the FPSO project. The JV partners have last week entered into a shareholders’ agreement with respect to the joint venture (FPSO project).
Bumi Armada estimates that the total financial commitment required by Armada Madura to complete the FPSO Project will range from US$450.0 million to US$500.0 million. The Armada Madura Shareholders shall satisfy the total financial commitment of Armada Madura under the FPSO Project via a combination of cash subscription for ordinary and/or preference shares of Armada Madura and/or the provision of shareholder loans by them in the Specified Proportions (shareholder funding), which may include the provision of financial guarantees by Bumi Armada and SPCL.
Bumi Armada expects Armada Madura to fund between 20% and 45% of its total financial commitment in the form of equity.
SPCL is a company under the Shapoorji Pallonji group of companies owned by Shapoor and Cyrus Pallonji Mistry, the brother of Shapoor, directly and through their companies. SPCL was incorporated in India under the laws of India on 23 January 1943.
The SPCL Group of Companies has a strong presence in India and internationally including the Middle East and Africa. The SPCL Group of Companies’ business interests cover construction (including residential, commercial, industrial and infrastructure), real estate, infrastructure (comprising coal mining, power, ports and roads), biofuels and agriculture, consumer products, electro-mechanical and mechanical, electrical, and plumbing services, facades and interiors, engineering, textiles, business automation and shipping and logistics. (*)
