Apexindo expects 2006 revenue incerase

PT Apexindo Pratama Duta, a drilling unit of PT Medco Energi Internasional, expects revenue in 2006 to increase 19 percent as leasing rates are rising with companies increasing exploration amid rising oil prices, agency reported.

Revenue is expected to increase to US$138 million this year from $116 million in the previous year, Apexindo's Finance Director Agustinus B. Lomboan told reporters in Jakarta Wednesday.

Apexindo would get higher revenue as leasing prices of rigs soared because oil explorers intensified efforts to search for oil.

Apexindo's drilling rates for this year increased between 30 percent and 40 percent as compared with last year's rates, Lomboan said. "The number of available rigs is limited and demand in soaring," he said.

Revenue in 2007 is estimated to rise to as much as $160 million as the company's proposed jack-up rig, called Soehanah, is expected to come into operation in January next year, said Lomboan.

Apexindo is negotiating to secure a $120 million loan to develop the rig from a group of foreign lenders. "We will close the deal soon," said Lomboan.

Apexindo owns and operates nine onshore drilling rigs, and four swamp barges contracted by the Indonesian unit of Total SA. It also operates one jack-up rig in the Middle East for Norway's Statoil ASA.(*)