business
Bumi Armada gets termination notice for its storage, offloading unit
Bumi Armada Bhd's wholly-owned subsidiary Armada Bainaves Pte Ltd has received a notice of termination for the charter of Armada Claire floating, production, storage and offloading (FPSO) unit from Woodside Energy Julimar Pty Ltd.
In a filing with Bursa Malaysia today, Bumi Armada said the termination notice was not valid and tantamount to a cancellation for convenience or alternatively a repudiation of the contract by Woodside Energy, pursuant to which the former is entitled to compensation from the latter.
The FPSO unit has been in operation in the Balnaves Field, off north-western Australia, since delivering first oil in August 2014.
"The company intends to fully enforce its rights under the contract including initiating legal proceedings against Woodside Energy for its unlawful purported termination of the contract.
"The purported termination of the FPSO charter contract is expected to have an impact on the full year 2016 financial results of the company, the extent of which cannot be conclusively ascertained at this juncture as it will depend on the outcome of the company's legal action against Woodside Energy," said Bumi Armada.
Bumi Armada shares closed 1.5 sen or 1.52% higher at RM1 for a market capitalisation of RM5.86 billion. – The Edge Markets, March 4, 2016.
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