Bumi Armada FPSO Unit Completes First North Sea Delivery

Malaysia-based Bumi Armada Berhad’s Armada Kraken FPSO unit completed the offloading of its first cargoes in the U.K. North Sea in early September at EnQuest’s Kraken Field.

The company said that first oil was achieved on June, a little more than four months after the FPSO unit’s hookup in mid-February. Bumi Armada called it the fastest first-oil delivery on an FPSO unit in the North Sea in the last 10 years.

The vessel has experienced technical problems that have reduced its production and forced the company to lower its charter rates. Bumi Armada contended that Armada Kraken would still be profitable this year. However, AmInvestment Research, taking a conservative approach, has maintained its “hold” call for the company.

EnQuest signed an eight-year, $1.8 billion charter agreement with Bumi Armada in 2013.

Japan’s Mitsui Angles For 26% Stake In Swan’s Indian LNG Unit

As part of its effort to increase its exposure to an LNG project on India’s west coast, Mitsui OSK Lines said on Sept. 18 that it intends to purchase at least a 26% stake in an FSRU and FSU.

Mitsui, Japan’s leading shipper, has been awarded a long-term contract with Swan Energy for its $260 million, 5 mtpa vessel, under construction at Jafrabad in western Gujarat state.

“We have until year-end 2019, by when the project will be completed, to buy at least 26% in Triumph Offshore,” Senior Managing Executive Officer Takeshi Hashimoto told Reuters, referring to the Swan subsidiary that will control the $260 million FSRU.

The project is on schedule to be commissioned in first-quarter 2020. Swan LNG Private Ltd., will manage the terminal and port facilities at the project.

Hashimoto said that Mitsui will sign a deal by early next month to take an 11% stake in Swan LNG at a cost of 413 million, reducing Swan Energy’s stake to 63%. Two Gujarat state companies hold a combined 26% of Swan LNG.

Swan will charter the FSU from Mitsui OSK. The company has contracted with Korea’s Hyundai Heavy Industries to build the FSRU.

The new facilities chime with India’s push to increase the proportion of gas in its energy mix, looking to the cheaper fuel to power its economic expansion.

“Now it is a very, very good time for India to expand its LNG business. LNG prices are very attractive,” said Hashimoto.

—Staff Reports