Bumi Armada lodged a claim for damages against Woodside nearly three years ago, over the cancellation of a charter contract for the Armada Claire floating production storage offloading vessel used at the Balnaves oil field offshore WA.

The Armada Claire had a capacity of 80,000 barrels of oil production per day.

Former field owner Apache had signed a deal with Bumi Amada to provide the FPSO in September 2011, for a four-year fixed term charter, with an option for a further four years.

Woodside then acquired the Balnaves field from Apache Energy in 2015 for approximately $54 million, just one year into the field's life.

However, following the acquisition Woodside realised the field's reserves were just 6.7 million barrels and it was no longer considered commercial to continue production.

This led to over millions of dollars' worth of writedowns, and inevitably Woodside terminated the contract with Bumi Armada.

Bumi is claiming damages of more than US$270 million for wrongful termination of the contract and an additional A$7million in damages.

Bumi potentially alleges it lost two years' worth of contracted payments from Woodside.

Justice Kenneth Martin is presiding over the case. He will hand down his judgement at 2pm AWST.