ELSA to spend $120 million for new drilling equipment

IDX-listed oil and gas service provide PT Elnusa Tbk (ELSA) will spend up to US$120 million to buy new drilling equipment which will be used to carry out seismic survey and drilling works for several oil and gas companies, Kontan reported on Friday.

The company?s corporate secretary Fajriah Usman said in Jakarta on Thursday that as of November, ELSA had secured seismic survey and drilling contracts worth $440 million from a number of oil and gas companies. The numbers comprised of $340 million for new contracts and the $100 million for carried over contracts.

Fajriah said that Pertamina remained ELSA?s largest client with a number of contracts including geosciences project and drilling works at Jambi Merang block. In addition, Elnusa also secured contract from Chevron to carry out drilling activities at the company?s West Papua I and III blocks.

The company is currently joining several tenders conducted by a number of oil and gas companies to carry out drilling works at several oil and gas fields next year, Fajriah said.

PT Elnusa, whose majority shareholders include Pertamina, booked total revenues of Rp 3.48 trillion during the first nine months of this year, a 2 percent increase from Rp 3.41 trillion in the same period, last year. (*)