BUMI ARMADA BHD said a unit in India was notified by client Oil and Natural Gas Corp Ltd (ONGC) about its intention to extend the charter hire of a floating, production, storage and offloading (FPSO) vessel.
The current contract of Armada Sterling FPSO, which is 49% owned by Bumi Armada, is expiring on April 19.
"According to ONGC, approval for formalisation of the contract extension has been delayed due to the COVID-19 lockdown in India," Bumi Armada said in a filing with Bursa Malaysia yesterday.
In the meantime, Bumi Armada said ONGC had requested the company to process the case with relevant authorities for obtaining permits and/or extension to ensure continuity of operations at site.
Armada Sterling FPSO was chartered by ONGC in 2011 to operate in the ONGC D1 field located 200km off the west coast of Mumbai, India.
The seven-year firm time charter came with six annual extension options.