Legal Action Over FPSO Contract Cancellation

Published at 03:52PM - 04/03/16

Bumi Armada is to take legal action over an FPSO contract cancelation, after it claims the termination by Woodside Energy is simply for matters of ‘convenience’.

The Malaysian based company is a provider of offshore facilities, such as FPSOs, to the global offshore energy industry.

In a statement released Friday Bumi Armada confirmed that it had received Notice of Termination, from Australia’s Woodside Energy, for the charter of the Armada Claire FPSO.

Legal Action Over FPSO Contract Cancellation

In a strongly worded statement Bumi Armada stated its position, that they believe the termination to be purely for reasons of convenience, and that they plan to start legal proceedings agains Woodside.

The statement said: ‘Bumi Armada’s position is that the purported Notice of Termination is not valid, and in fact tantamount to a cancellation for convenience or alternatively, is a repudiation of the Contract by Woodside, pursuant to which the Company is entitled to compensation from Woodside.’

‘The Company intends to fully enforce its rights under the Contract, including initiating legal proceedings against Woodside for its unlawful purported termination of the Contract.’

Woodside Energy has made no indication or released any statements detailing the reasons behind its move.

Armada Claire FPSO

The Armada Claire FPSO has been operating for Woodside Energy in the company’s Balnaves Field, offshore north-western Australia. First production was achieved back in August 2014.