KUALA LUMPUR: Bumi Armada Bhd
said a shut-in at its Armada Kraken floating production storage and offloading (FPSO) vessel and future reduced level of production is likely to reduce bareboat charter contract revenue earned by the FPSO.
"Given the current uncertainties, the financial impact of this incident cannot be reliably estimated at this point, but is expected to be material for Bumi Armada," it said in a filing with Bursa Malaysia.
The group said the Armada Kraken FPSO was recently shut-in following the failure of critical hydraulic submersible pump transformers.
The group is currently assessing alternative technical solutions in a bid to to return the Armada Kraken FPSO to production.
It said its subsidiary, Armada Kraken Pte Ltd, which owns the FPSO, and field operator EnQuest planned and executed a restart of the facility but was unsuccessful.
"Armada Kraken Pte Ltd is working with EnQuest to assess alternative technical solutions, with the aim to return to production, on a phased basis, in the coming weeks.
"In the meantime, key maintenance activities, originally scheduled for execution within two periods of single train operations in the third quarter of the year, are being executed during the period of shut-in," it said.
It added that the activities are intended to negate the requirements for any further planned outages in 2023.
