Bumi Armada unit served notice to suspend operations

April 17, 2018 | By | Reply More

Grab latest promotion at LAZADA now!

 KUALA LUMPUR: Bumi Armada Bhd has been served a notice from Erin Petroleum Nigeria Ltd (EPNL) to immediately shutdown operations on its floating production storage and offloading (FPSO) unit, Armada Perdana.

In a filing on Bursa Malaysia, the firm said the notice, citing a “force majeure event” was received by its unit Bumi Armada (Singapore) Pte Ltd (BASPL) on April 11 2018.

The company had also received a Notice of Seizure/Attachment of Goods from a third party informing that the entire crude oil produced and stored in Armada Perdana has been seized by a writ from the Lagos Federal High Court in relation to legal proceedings which the Bumi Armada Group is not a party.

“The company had sought clarifications from EPNL on such Notice of Seizure/Attachment of Goods but EPNL has not responded to the company despite numerous reminders,” it added.

In the filing, Bumi Armada said while the suspension remains in place, EPNL is not relieved from its obligation to make all payments due to Armada Oyo Ltd and BASPL under their contracts.

“The company is of the view that the purported Force Majeure declaration by EPNL is wrongful under the Operational and Maintenance Services Contract and the company is reviewing its legal options, including commencement of legal proceedings against EPNL, to uphold the contractual rights of AOL and BASPL under the contracts,” Bumi Armada said.

It said the estimated financial impact of credit risk recovery for Bumi Armada group to the results for the financial year ending Dec 31, 2018, is approximately RM30 million.

 

FREE RM12.70 credit upon sign up to discover and book amazing travel experiences with Klook.

Category: News

About the Author ()

Leave a Reply