Federal drops plan to mobilize rig to Jaboi geothermal project
Saturday, August 6 2016 - 01:54 AM WIB
SGX-listed Federal International (2000) announced on Friday the plan to mobilize its rig to drill geothermal wells n Jaboi, Sabang, Aceh province has been dropped because the charterer fails to make downpayment.
?The land rig was not deployed for the drilling of the three wells in Jaboi, Sabang, Aceh Province in Indonesia as no downpayment was received from the charterer,? the firm said.
The firm did not provide details on the rig, while saying it is a 1,200 HP land drilling rig.
The firm added it is currently in discussion with various parties on the possible charter of the land rig.
The developer of the Jaboi geothermal project is PT Sabang Geothermal Energy (SGE). Federal said in February of this year the geothermal developer had obtained forestry permit for drilling at the site where it plans to build a 80-MW geothermal power plant. Under the contract, SGE should pay Federal US$917,000 in chartering fee, and the charterer has the option to extend the charter for the drilling of a further seven wells at the same location.
Federal also said that as at 26 July 2016, the firm and subsidiaries have outstanding orders of $42 million for on-going projects. The group is currently working closely with its associate, PT Gunanusa Utama Fabricators (GUF), on an EPCIC project.
?Further announcements will be made when details of the project are finalized,? it said.
GUF is an established contractor providing project management, engineering, procurement, construction, installation and commissioning (EPCIC) services for offshore, onshore and heavy engineering projects. Federal owns a 20.7 percent stake in GUF.
Editing by Johannes Simbolon