Offshore energy services and facilities provider Bumi Armada Berhad today announced that its top performing floating production system (FPSO), the Armada Kraken FPSO, has stopped production due to the failure of critical hydraulic submersible pump transformers with efforts to restart came to naught.

The group, which reported RM2.4 billion revenue for the year ended December 2022, told investors the current shut-in and future reduced level of production meant that the bare boat charter contract revenue earned by its subsidiary Armada Kraken Pte Ltd (AKPL) will be reduced.

"Given the current uncertainties, the financial impact of this incident cannot be reliably estimated at this point, but is expected to be material for Bumi Armada," it said in the statement filed with Bursa Malaysia.

The Armada Kraken FPSO is deployed under a charter contract at one of the biggest subseas heavy oil field in the North Sea, the Kraken Field.

Bumi Armada said while an earlier attempt to restart production failed, its subsidiary AKPL will continue to work with the field operator, EnQuest, to come up with alternative technical solutions, with the aim to return to production, on a phased basis, in the coming weeks.

In an effort to ensure that no more time is lost for any planned outages, key maintenance activities, originally scheduled for execution within two periods of single train operations in the third quarter of the year, are underway during the period of shut-in.

Bumi Armada's shares closed up one sen to 63.5 sen at market close on Friday.