Malaysia-based international offshore energy facilities and services provider Bumi Armada Berhad made the following announcement to Bursa Malaysia:
Purported Termination of Contract
Bumi Armada Berhad’s (Bumi Armada) whollyowned subsidiary Armada Balnaves Pte Ltd (ABPL), has received a Notice of Termination from Woodside Energy Julimar Pty Ltd (Woodside) purporting to terminate the contract in relation to the charter of the Armada Claire Floating Production Storage and Offloading (FPSO) unit (Contract), which has been operating in the Balnaves Field, off north-western Australia since delivering first oil in August 2014.
Bumi Armada’s position is that the purported Notice of Termination is not valid, and in fact tantamount to a cancellation for convenience or alternatively, is a repudiation of the Contract by Woodside, pursuant to which the Company is entitled to compensation from Woodside. The Company intends to fully enforce its rights under the Contract, including initiating legal proceedings against Woodside for its unlawful purported termination of the Contract.
Financial Impact
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.
