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Bumi Armada Berhad, the Malaysia-based international offshore oilfield services provider, announced that its subsidiary, Armada Kraken Pte. Ltd. has signed a bareboat charter contract with EnQuest Heather Limited, EnQuest ENS Limited, First Oil and Gas Limited, Nautical Petroleum Limited, and Nautical Petroleum AG as field partners, for a Floating Production, Storage and Offloading Vessel (FPSO) deployment at the Kraken field located in the UK sector of the North Sea.

Bumi Armada and EnQuest Heather Limited also signed a reimbursable contract for the operations and maintenance (O&M) of the Kraken FPSO.

Both contracts will run simultaneously for a fixed period of eight years, with options for 17 annual extensions with a significant upside when the options are fully exercised.

These two contracts are valued at $1.4 billion.

Bumi Armada will be using a recently built ice-class tanker for this FPSO conversion.

The FPSO will have a storage capacity of 600,000 bbl.