Malaysian oilfield services company Bumi Armada Bhd has managed to find a buyer for its floating production storage and offloading (FPSO) vessel Armada Perdana in Nigerian company Century Energy Services (CESL) for RM167.17 million (US$40 million).

Kuala Lumpur-based floater player said in a Bursa Malaysia filing that its subsidiary, Armada Oyo Limited (AOL), had entered into an agreement with CES) for the sale of the Armada Perdana.

CESL plans to redeploy the vessel to another field in Nigeria, said the statement.

CESL has already paid US$4.5 million out of a US$5.5 million deposit to AOL, with the outstanding amount to be satisfied before the end of the year.

Additional vessel expenses incurred from Aug 1 until the delivery date of the FPSO will be offset against the purchase price.

Then, another US$5 million is payable within six months of the delivery date or on the first oil date.

To secure the unpaid portion of the Purchase Price, Bumi Armada shall hold a mortgage over the Armada Perdana FPSO. The conclusion of the sale of the Armada Perdana FPSO will absolve the Group from its demobilization obligations.

Bumi Armada suspended operations on Armada Perdana in June 2017 after irregular payments from Erin Petroleum Nigeria Ltd but allowed continuing oil produced to flow into Armada Perdana and a one-off cargo intake by Erin.