Elnusa targets to bag $50-80m new contracts

By Brigida Ernestina Elu Wea

IDX-listed oil and gas service firm PT Elnusa Tbk targets to grab new contracts worth US$50-$80 million this year aside from the $317 million contract that has been secured by the firm since the start of this year.

Elnusa?s President Director Syamsurizal Manaf said at present, the firm has $400 million contracts on hand, but not all of them would be realized this year.

Despite the oil price drops, the firm continues receiving contracts, which reflected costumers? confidence in the firm?s capability in competition with foreign players.

?Contracts for this year were mostly received from Pertamina to carry out the firm?s operation and project maintenance. Pertamina gives us competitive prices,? he said.

He said the sharp drop in oil prices has affected drilling activities, but business opportunities still exist in operation and maintenance.

?We know that oil and gas business has been existing in Indonesia for decades. There are many facilities aged more than 20 or 30 years old, which need professional workers or expertise to upgrade the effectiveness and productivity of equipment. This is a business opportunity for us and hopefully we can get projects like this in days ahead,? he said.

While its drilling service may face challenges due to the market downturn, the firm is optimistic about its financial performance thanks to other business lines such as fabrication and logistic service.

Editing by Johannes Simbolon