American independent oil and gas firm, CAMAC Energy has reached an agreement with Malaysian contractor, Bumi Armada, to use its vessel, Armada Perdana, for operations in Nigeria within the next 7 years.

Armada Perdana, a floating, production, storage, and offloading vessel (FPSO) has the ability to produce 40,000 barrels of oil per day with a storage capacity of 1.1 million barrels.

“Securing this infrastructure for up to seven years is another milestone towards the growth of CAMAC,” Segun Omidele, Senior Vice President of exploration and production, CAMAC said.

Following the agreement, CAMAC will use of the vessel for a period of 5 years starting in 2014 and can automatically extend for another 2 years except the contract is terminated before then.

The 5-year contract is inclusive of maintenance, support and operations. It is valued at $381 million while the 2-year option is said to be worth $108m.

It will increase the total daily production of CAMAC in its Oyo Field, Southwest Nigeria, which is currently pegged at 2,000 barrels of oil and 40 million cubic feet of natural gas.

The company, which is listed on the New York Stock Exchange (NYSE) has gotten approval to begin trading on the Johannesburg Stock Exchange (JSE) to commence trading in the oil and gas sector.