D-Day for Erin as Bumi shots FPSO while Nigeria drilling nears

摘要

The next few months could be make or break for Erin Energy with Bumi Armada having yesterday shut down the FPSO just as the company was set to restart drilling off Nigeria to provide much needed cash flow and pay off some of its debts. Erin operates the Oyo field in OML 120 which has been hit by production problems in recent years reducing output to around 5,500 b/d while the FPSO has a capacity of 40,000 b/d. The charter for Bumi's Armada Perdana FPSO has not been paid since the fourth quarter of 2015 although the contract runs for another four years. Yesterday Bumi decided enough was enough and suspended the bare-boat charter and operations and maintenance contracts.