Bumi Armada has confirmed the sale of an out of contract FPSO left in the lurch by the bankruptcy of its previous charterer.
The Malaysian FPSO specialist will receive $40m for the Armada Perdana FPSO from Century Energy Services Limited (CESL).
The buyers intend to redeploy the converted suezmax tanker to another field off Nigeria, according to Bumi Armada.
CESL has already paid a deposit of $4.5m with another $1m to be paid before the end of 2019. A further $11.6m will be used to settle amounts owing Bumi Armada to CESL.
CESL will pay a further $5m of the purchase price on or before the earlier of six months after the vessel is delivered to CESL or when oil is first produced in the field to which the vessel is redeployed.
Finally, the remaining balance of $17.9m is due to be paid within two years from the first oil date.
To secure the unpaid portion of the purchase price, Bumi Armada said it will hold a mortgage over the Armada Perdana FPSO.
The Armada Perdana FPSO has been out of contract in Nigeria since its previous charterer, Erin Petroleum Nigeria, along with its parent company Erin Energy Corp, filed for bankruptcy under Chapter 11 of the US Bankruptcy Code in April 2018.
