Bumi Ar­mada’s Nige­ria-based FPSO ves­sel or­dered to cease ops, crude oil seized

The Sun (Malaysia) - - MEDIA & MARKETING -

PETALING JAYA: Bumi Ar­mada Bhd’s wholly owned sub­sidiary Bumi Ar­mada (Sin­ga­pore) Pte Ltd has re­ceived a no­tice for the im­me­di­ate shut­down of op­er­a­tions of its Nige­ria-based float­ing pro­duc­tion stor­age and of­fload­ing (FPSO) ves­sel, Ar­mada Per­dana, and a no­tice of seizure of crude oil pro­duced and to be pro­duced there.

The group said in a stock ex­change fil­ing yes­ter­day that it re­ceived a no­tice from Erin Petroleum Nige­ria Ltd on April 11 ad­vis­ing it of a pur­ported “force ma­jeure event” and re­quest­ing the im­me­di­ate and or­derly shut­down of op­er­a­tions on Ar­mada Per­dana.

In ad­di­tion, it also re­ceived a no­tice of seizure/at­tach­ment of goods from a third party in­form­ing it that the en­tire crude oil pro­duced, to be pro­duced and stored in the ves­sel has been seized.

This came with a writ of at­tach­ment in re­la­tion to le­gal pro­ceed­ings to which the Bumi Ar­mada group is not a party from the Fed­eral High Court, La­gos.

Bumi Ar­mada said it is of the view that the pur­ported force ma­jeure dec­la­ra­tion by Erin Petroleum is wrong­ful un­der the op­er­a­tional and main­te­nance ser­vices con­tract and it is re­view­ing its le­gal op­tions, in­clud­ing com­mence­ment of le­gal pro­ceed­ings against Erin Petroleum, to up­hold the con­trac­tual rights of Ar­mada Oyo Ltd (AOL) and Bumi Ar­mada Sin­ga­pore un­der the con­tracts.

Bumi Ar­mada main­tains that the sus­pen­sion of pro­vi­sion of ser­vices un­der the bare­boat char­ter­party con­tract and the op­er­a­tional and main­te­nance ser­vices con­tract re­spec­tively re­mains in place and EPNL is not re­lieved from its obli­ga­tion to make full pay­ment of all pay­ments due to AOL and Bumi Ar­mada Sin­ga­pore un­der the con­tracts.

The es­ti­mated fi­nan­cial im­pact of credit risk re­cov­ery for Bumi Ar­mada group on re­sults for the fi­nan­cial year end­ing Dec 31, 2018, is RM30 mil­lion.

Bumi Ar­mada fell 1.6% to 90.5 sen yes­ter­day.

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