Bumi Armada loans $750M for Kraken FPSO

Bumi Armada has secured a loan to finance construction of the Kraken FPSO, a unit which will mark the company’s entry to the North Sea oil and gas market.

Malaysia-based international company, Bumi Armada Berhad announced that its wholly-owned subsidiary, Armada Kraken Pte Ltd (“Armada Kraken”) has secured a syndicated bridge loan facility of USD750 million (the “Facility”) from Oversea-Chinese Banking Corporation Limited, Maybank International Labuan Branch, Sumitomo Mitsui Banking Corporation, Singapore Branch, United Overseas Bank Limited, Export-Import Bank of Malaysia Berhad and Korea Development Bank, Singapore Branch.

This facility will be used for Armada Kraken to, inter alia, part finance and reimburse all costs and expenses in relation to the acquisition, conversion, refurbishment, mobilization, transport, hook-up and mooring and installation of the FPSO together with all ancillary and related works required under the Bareboat Charter with EnQuest.

Armada Kraken’s payment obligations under the Facility are guaranteed by Bumi Armada. The Facility is intended to be refinanced by long term project financing in due course.

Armada Kraken had on 20 December 2013 entered into a bareboat charter contract with EnQuest Heather Limited, EnQuest ENS Limited, First Oil and Gas Limited, Nautical Petroleum Limited, and Nautical Petroleum AG as field partners, led by EnQuest Heather Limited as field operator, for an FPSO to be deployed at the Kraken field located in the UK sector of the North Sea for a period of 8 years plus an option for a further 17 years.

Bumi Armada’s Executive Director and CEO,r Hassan Basma says, “The Kraken FPSO in the North Sea marks the start of Bumi Armada’s entrance into the top-tier of FPSO players. With a project of such magnitude, it is important to secure the capital required to enable us to see through the project. We are honored that we are able to count on partners like Oversea-Chinese Banking Corporation, Maybank, Sumitomo Mitsui Banking Corporation, United Overseas Bank Limited, Export-Import Bank of Malaysia Berhad and Korea Development Bank, together with EnQuest, First Oil and Nautical Petroleum, the field owners, who have placed their trust firmly with Bumi Armada.”