Apexindo expects to spend about Rp 342 billion for exploration

PT Apexindo Pratama Duta Tbk, a publicly listed company engaged in oil drilling activities, expects to spend about Rp 342 billion (1$=Rp8,900) this year to finance exploration works and the construction of new offshore rigs, Bisnis Indonesia reported Friday.

Apexindo?s investors relations coordinator, Anita Zultriana, said in Jakarta on Thursday that the company?s expenditure would be financed with own funds and loans from Fortis Bank of Singapore, which would form a syndication with other banks to provide the loans.

"We are still completing the document needed to obtain the loans from Fortis Bank," she was quoted by the daily as saying. She added the loans amounting to about US$73.25 million to be provided by Fortis Bank would be disbursed in stages. About US$39 million of the total loan would be disbursed in the first stage, while the remainders would be disbursed depending on the finalization stages of the projects.

The loans would also be used to partly finance the construction of three new rigs (Raisa, Maera and Yani) which will cost the company about US$114 million. The financing will be in the form of internal funds of about US$12.5 million, equity of US$13 million, insurance funds of US$15 million, and bank loans of about US$73.25 million.

The construction of the Raisa Rig is conducted by Keppel Fels Ltd of Singapore. The project which has now been 60 completed is scheduled for completion in April this year. The construction works of the Maira Rig has been 70 percent completed and would be fully completed in January this year while the construction of the Yani Rig which has been 15 percent completed would be ready for operation in May, this year. (*)