The LOIA allows Bumi Armada to proceed with critical activities and the procurement of long-lead items ahead of final contract award, which the company expects to signed before Nov. 30.
Kraken is a heavy-oil field in East Shetland basin block 9/02b. First oil is due to flow in 2016/2017.
The FPSO, which will have a storage capacity of 600,000 bbl, will be held in place by a buoy turret mooring system, and will be classed by DNV. It is due to remain on station for 25 years.
Bumi Armada will additionally assume the “Duty Holder” role under a safety case regime, reporting to the UK Health and Safety Executive and the Department of Energy and Climate Change.