Indian finance for FPSO conversion

Armada D1 Pte. Ltd. (Armada D1) has secured syndicated term loan facilities of up to USD 276.4 million, which will be used to part finance all costs and expenses in relation to the acquisition, conversion, refurbishment, mobilisation, transport, hook-up, and mooring and installation of the FPSO Armada Sterling and to refinance Armada D1’s existing bridge loans.

The loan has been secured from several Indian banks, which include Allahabad Bank, Bank of Baroda, Bank of India, Indian Bank, Indian Overseas Bank, UCO Bank and Union Bank of India.

Armada D1 is a joint venture company formed between Bumi Armada Berhad, the Malaysia-based international offshore oil and gas services provider, and the Mumbai-based Shapoorji Pallonji and Company Limited. The company’s principal activities involve owning, chartering and managing ships and vessels, and providing marine support and other offshore services to oil and gas companies.

Bumi Armada’s Executive Director/CEO, Mr Hassan Basma said: “As the Armada Sterling was built for India, Bumi Armada together with our partners sought to engage and involve Indian financial institutions.

“We welcome these banks to our value chain and thank them for their invaluable support; and providing financing at competitive rates despite a backdrop of global economic uncertainty playing out across the US and Europe. We are grateful to the banks for their support and confidence in our business.”

In addition, Mr Basma stated that the FPSO had been delivered safely to the D1 field off the coast of Mumbai on 10 December, with no lost time incidents and in record time.