Elnusa to diversify into power business

IDX-listed oil and gas services company PT Elnusa Tbk plans to diversify into power plant business to help cope with the current drop in oil price.

Elnusa President Director Syamsurizal was quoted by Investor Daily as saying on Wednesday that the company will utilize flare gas for the planned power plant project, which is in line with the government?s wish to take advantage of flare gas.

He said that the company, a subsidiary of state-owned oil and gas firm PT Pertamina, has been in talks with upstream oil and gas authority SKK Migas over the planned power plant project, and hopes state-owned electricity firm PT PLN to respond positively to the initiative.

Syamsurizal, however, said the company has yet to decide whether to build the power plant or merely as supplier of the flare gas.

Elsewhere, he said that despite the lingering weak oil price, the company still see business opportunities as some oil and gas contractors continue to maintain production level. He added that there are also opportunities at home as some foreign services companies pull out from the country as part of business streamlining measures. (*)