Apexindo wins $42m drilling contract from Vico Indonesia

Publicly listed drilling contractor PT Apexindo Pratama Duta said Friday it had won a US$42 million contract from VICO Indonesia to carry out the latter's onshore drilling program.

Apexindo said in a statement that it would use its Rig. No. 9 and Rig No. 10 for the two-year drilling campaign.

VICO, a joint venture between Eni Spa and BP plc, operates four main fields in Sanga Sanga PSC in East Kalimantan, that is Semberah, Badak, Nilam, and Mutiara

VICO controls about 500 wells with a combined production of 900 million cubic feet of gas and 30,000 barrels of oil per day. The company is a principal supplier of gas to the Bontang LNG plant in East Kalimantan.

It is currently struggling to meet its gas delivery commitment to both international and domestic markets due to the maturing condition of its upstream assets.

Apexindo, a 77.53 percent-owned subsidiary of oil and gas firm PT Medco Energi Internasional Tbk, operates 16 drilling rigs, consisting of 11 onshore rigs and five offshore rigs. (Robert)