Bumi Armada bags $1.4 bln FSPO vessel job for North Sea's Kraken Field
KUALA LUMPUR Dec 24 (Reuters) - Malaysian oil field services firm Bumi Armada has won two contracts worth $1.4 billion to deploy, operate and maintain a floating production, storage and offloading (FSPO) vessel in one of the largest oil fields on the UK's side of the North Sea.
Bumi Armada, controlled by Malaysian tycoon Ananda Krishnan, said late on Monday it signed both contracts with British independent oil producer EnQuest Plc and other partners to work on the Kraken field in the North Sea.
The contracts run for eight years each with options for 17 annual extensions, the Malaysian firm said, with the FSPO to be delivered to the Kraken field by 2016.
Some 140 million barrels of heavy oil are expected to be extracted from the Kraken oil field over 25 years, Bumi Armada said.
Enquest, which specialises in extending the life of old oil fields and focuses on the North Sea, is expected to spend about $6.4 billion on developing Kraken, according to a media report.