Apexindo plans to add new rig to its fleet

Publicly listed drilling service company PT Apexindo Pratama Duta plans to increase the company?s capital expenditure (capex) by 10 percent next year to support its expansion plan including the procurement of new rigs.

Apexindo?s president director Hertriono Kartowisastro said in Jakarta last week that the company which allocated about US$15 million in capex this year would need to buy both offshore and land rigs to expand drilling services.

?As a developing company, we certainly need additional rigs to support our expanding drilling services. The purchase of new rigs is currently being assessed,? he said.

He said that purchasing a new offshore rig would cost the company about $220 million. ?Building a new one will be cheaper costing only about $180 million, but it will take more than two years to make it ready for operation,? he added.

Currently, Apexindo has 8 land rigs and 6 offshore rigs which consist of four submersible swamp barge rig: Maera, Raisis, Raissa and Yani; and two jack-up Raniworo and Soehanah. (*)