PETALING JAYA: Bumi Armada Bhd is expected to receive US$8.5 million (RM35 million) from the sale of crude oil stored on the Armada Perdana floating production storage and offloading (FPSO) by Erin Petroleum Nigeria Ltd.
The group told the stock exchange that Erin Petroleum, which has filed for bankruptcy, has been granted an agreed order to appoint a receiver/manager in Nigeria to oversee the sale of the crude oil stored on Armada Perdana FPSO.
In line with that, Bumi Armada (Singapore) Pte Ltd (BASPL) and Armada Oyo Ltd (AOL) are entitled to receive partial settlement of the outstanding amount owed to them by Erin Petroleum for the provision of services under the operational and maintenance services contract and bareboat charterparty contract for Armada Perdana FPSO.
In April, Erin Petroleum filed for bankruptcy together with its parent company Erin Energy Corp under Chapter 11 of the US Bankruptcy Code. The case was then converted into a liquidation proceeding under Chapter 7 of the code in July 2018.
“The company will continue to provide updates from time to time on any further material developments regarding the Armada Perdana FPSO,” said Bumi Armada.
Bumi Armada closed unchanged at 41 sen today on 13.82 million shares done.