Bumi Armada in RM903m vessel charter deal with Lukoil

Business & Markets 2013
Written by Chong Jin Hun of theedgemalaysia.com
Tuesday, 03 December 2013 13:42
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KUALA LUMPUR (Dec 3): Bumi Armada Bhd will lease six marine vessels to
Russia-based oil and gas (O&G) firm Lukoil-Nizhnevolzhskneft. The charter
contracts have a combined value of US$280 million (RM903 million).
In a statement to Bursa Malaysia today, Bumi Armada said the vessels will
support Lukoil-Nizhnevolzhsknef's O&G operations within the Filanovsky field
at the Caspian Sea.
The Bumi Armada-Lukoil-Nizhnevolzhskneft deal comes in two segments. The
first involves three charter contracts comprising two new support vessels and a
new multi-purpose duty-rescue entity.
According to Bumi Armada, the "Ice-Class" contracts have a collective value of
USD262 million (RM844 million). This is for a fixed 10-year charter.
These vessels are due for delivery in November 2015. "Each of the Ice-Class
contracts is for a fixed period of ten (10) years with the possibility of further
extensions of up to another 20 years (extension options)," Bumi Armada said.
Bumi Armada and Lukoil-Nizhnevolzhskneft have also signed interim contracts.
These involve two support vessels and one rescue unit.
The interim contracts have a combined value of US$18 million (RM59 million).
Vessels under the interim deal are scheduled for delivery in November 2014
pending delivery of the Ice-Class entities.
"The "Ice-Class" contracts and the interim contracts , with and without the
exercise of the extension options, are expected to contribute positively to the
revenue and earnings of Bumi Armada group for the financial year ending 31 December 2014 and the financial periods thereafter for the
duration of the contracts," Bumi Armada said.