KUALA LUMPUR (May 19): Bumi Armada Bhd’s 49%-owned joint venture company today entered into a licence agreement with the the Board of Trustees for the Port of Mumbai (MbPT) for a floating storage and regasification unit (FSRU) project.
The joint venture company, SP Armada Clean Energy Ventures Pvt Ltd (SPACEVPL), inked the agreement with MbPT to set up, operate and maintain the FSRU in Mumbai harbour for a 30-year period, it said in a bourse filing.
Bumi Armada said SPACEVPL and MbPT will have 270 days from the date of execution of the agreement to fulfil certain conditions precedent.
“At the end of the licence period, ownership of the infrastructure, which include the pipeline and jetty, except for the FSRU, shall be transferred to MbPT.
“Further details relating to the project will be announced when there are further material developments,” it said.
“In order to achieve a financially successful project, SPACEVPL will have to sell the terminal capacity and re-gasification to potential customers. To this end, there is a focused marketing strategy in place,” the group added.
Shares of Bumi Armada fell three sen or 6.52% to close at 43 sen, valuing the floating oil and gas assets operator at RM2.51 billion.
