Bumi Armada Berhad (“Bumi Armada”) wishes to announce that its joint-venture company Armada D1 Pte Ltd (Singapore) (“AD1”) has received a Notification of Award from Oil and Natural Gas Corporation Limited ("ONGC") of India for the bareboat charter lease (“BBC Contract”) of the Armada Sterling Floating Production, Storage and Offloading vessel ("Armada Sterling FPSO") to be operated in the ONGC D1 field located 200km off the west coast of Mumbai, India.

INFORMATION ON THE BBC CONTRACT

The BBC Contract is for a fixed period of 10 years with an annual option to extend the BBC Contract for up to 5 additional years. The fixed 10-year firm BBC Contract has an estimated total value of USD370 million (approximately RM1.54 billion). The BBC Contract will be effective from 25 September 2020.

AD1 is 51%:49% owned by Shapoorji Pallonji Oil & Gas Pte Ltd (“SPOGPL”) and Bumi Armada. ONGC is India's state-owned oil company listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India Ltd (NSE).

FINANCIAL EFFECTS

The BBC Contract is expected to contribute positively to the future earnings of Bumi Armada Group during its tenure.

RISKS ASSOCIATED WITH THE BBC CONTRACT

The risks associated with the BBC Contract are normal operational risks on the vessel’s efficiency and reliability in terms of vessel performance, people capability as well as Health Safety Security Environment and Quality performance. These risks can be mitigated through Bumi Armada's system of project management and internal business controls as well as past experience with the same joint venture partner for several FPSOs in India.

DIRECTORS AND MAJOR SHAREHOLDER’S INTERESTS

None of the Directors and/or Major Shareholders of the Company or persons connected with them have any interest, direct or indirect in the BBC Contract.

This announcement is dated 25 September 2020.

*Based on the exchange rate of USD1 : RM4.1635 on 24 September 2020 as set out in Bank Negara Malaysia’s website.