BUMI Armada Bhd’s share price on Bursa Malaysia was slightly higher this morning despite the extension of floating production storage and offloading (FPSO) vessel contract awarded to its joint-venture (JV) in India has been delayed due to the current lockdown there.
The JV company was Shapoorji Pallonji Bumi Armada Offshore Private Ltd (SPBAOPL), which is 49% controlled by Bumi Armada while the other majority held by Shapoorji Pallonji Oil and Gas Private Ltd of India.
As at 9.30am, the oil and gas stock inched up half-a-sen to 18 sen with 9.05 million shares changing hands.
“According to (India-state owned) Oil and Natural Gas Corporation Ltd (ONGC), approval for the formalisation of the contract extension has been delayed due to the Covid-19 lockdown in India.
“In the meantime, ONGC has requested SPBAOPL to process the case with relevant authorities for obtaining permits/ extension to ensure continuity of operations at site,” said Bumi Armada in a filing to Bursa Malaysia yesterday. – April 16, 2020, Bernama
