Bumi Armada Loses Appeal in FPSO Contract Termination Case Against Woodside

Malaysian FPSO leasing company Bumi Armada has lost its appeal in relation to a 2020 court decision in which it had lost a case against Woodside concerning an FPSO contract termination from 2016.

Woodside terminated the contract in 2016 for the FPSO Armada Claire, which was at the time operating at the Balnaves Field, offshore north-western Australia.

Bumi Armada, via its Armada Balnaves subsidiary, deemed the termination unlawful, and then took legal action against Woodside, seeking a $283.5 million compensation. The Supreme Court of Western Australia in January 2020 dismissed Bumi's claim against Woodside for wrongful termination of the Armada Claire FPSO contract, after which Bumi said it would appeal against the decision. Bumi Armada's appeal was heard in July 2021. 

In a statement on Friday, Woodside said:"In a judgment issued today, the Court of Appeal has found in favour of Woodside and dismissed Bumi’s appeal."

Bumi Armada also released a statement later on Friday, in which it said it might appeal again.

It said:" [Bumi Armada] was unsuccessful in its appeal and ordered to pay [Woodside's] costs. Bumi Armada is currently reviewing the judgment and considering possible grounds of appeal. Any application for special leave to appeal to the High Court of Australia is to be lodged within 28 days."

Worth noting, Bumi Armada had initially signed the Armada Claire FPSO deal with Apache in 2011. Apache then, in 2015, sold its Australia operations to Woodside, which eventually terminated the FPSO contract.

The 240-meter-long Armada Claire converted into FPSO by Keppel in 2013. In its first quarter presentation, Bumi Armada said that the Armada Claire would be sold or scrapped in 2022. AIS data by MarineTraffic.com shows the vessel is currently located at the Galang Anchorage, Batam, Indonesia.

Armada Claire Specs: 

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