Bumi Armada has been informed of the suspension of its Armada Perdana floating production storage and offloading (FPSO) unit by Erin Petroleum Nigeria Ltd (EPNL), The Star reports.
Bumi Armada said on Tuesday its unit Bumi Armada (Singapore) Pte Ltd (BASPL) was issued with notices of suspension by EPNL in relation to the operations of the FPSO. It said that BASPL was advised of a purported “force majeure event†by EPNL requesting immediate, orderly shutdown of operations on the FPSO.
BASPL also received a notice of seizure/attachment of goods from a third party informing that the entire crude oil produced and to be produced and stored in Armada Perdana has been seized/attached by a writ of attachment of the Federal High Court, Lagos. Bumi Armada said it was not party to the legal proceedings.
Bumi Armada said the purported force majeure declaration by EPNL was wrongful under the operational and maintenance services contract. It said it was reviewing its legal options, including commencement of legal proceedings against EPNL, to uphold the contractual rights of Armada Oyo Ltd (AOL) and BASPL under the contracts.