Bumi Armada gets RM576 million additional scope from Lukoil

PETALING JAYA: Bumi Armada Bhd has signed a supplementary agreement with LUKOIL-Nizhnevolzhskneft LLC (Lukoil) for additional scope of work valued at US$134 million (RM576 million).

In a filing with Bursa , Bumi Armada said its wholly-owned subsidiary Bumi Armada Caspian LLC (BAC) signed the supplementary agreement with Lukoil for additional engineering, procurement, construction and installation (EPCI) scope.

“The additional scope will involve BAC’s marine spread to lay subsea pipelines and undertake post trenching and back-filling works on sections of the Filanovsky field in the Russian sector of the Caspian Sea,” it said.

The additional scope involves the EPCI of about 20km of various pipelines in the field involving the Armada Installer and Armada Constructor vessels. Project preparation activities have started and the works are expected to be completed in the second half of 2018.

“Bumi Armada has been working with Lukoil in the Caspian since 2012 and this supplemental agreement highlights the continuing strong working relationship with our client, and our proven track-record to deliver high quality subsea construction services in the Caspian Sea,” Bumi Armada executive director and CEO Leon Harland said in a statement.

The supplementary agreement is expected to contribute positively to the company’s earnings, especially the offshore marine services’ segment, during the contract period.

Bumi Armada’s fell 1.45% to close at 68 sen on Friday with a total of 7.09 million shares traded, giving it a market capitalisation of RM3.99 billion.

Source: The Sun Daily

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