Oilfield services provider Bumi Armada has signed a non-binding agreement with two Indonesian companies to develop and market liquefied natural gas (LNG).

Bumi Armada, a Malaysian company, signed the deal with Pertamina International Shipping and natural gas trading company Davenergy Mulia Perkasa (DMP).

Pertamina International Shipping is the shipping and marine logistics unit of Indonesian Government-backed oil and gas company Pertamina.

The consortium will focus on commercialising the Madura gas field and its neighbouring fields.

Under the agreement, Bumi Armada and Pertamina International Shipping will develop, engineer, build, install, commission, connect and run a floating natural gas liquefaction and storage complex.

The facility will also have an LNG carrier to deliver LNG to customers that are far from sustainable energy sources, Bumi Armada said in a statement.

The first LNG shipment is expected to leave the facility three years after the final investment decision has been made.

Initial talks have already commenced with a number of potential offtaker clients.

Bumi Armada CEO Gary Christenson said: “We are excited to collaborate with Pertamina International Shipping and DMP in this opportunity to bring sustainable and scalable solutions to reduce carbon emissions in Indonesia, which is also in line with Bumi Armada’s recently launched decarbonisation agenda to achieve net zero by 2050.

“This collaboration is a testament to our strong commitment towards providing the best decarbonisation solutions globally.”

In July this year, Brazil’s Petronas and Pertamina reached an agreement to buy Shell’s 35% stake in the Masela production sharing contract offshore Indonesia in a deal valued at up to $650m.