KS Energy, Citra Tubindo to form JV on rig services

Singaporean firm KS Energy Services Limited announced Monday it had signed a memorandum of understanding (MOU) with PT Citra Tubindo Tbk to form an Indonesian joint venture (JV) to provide refurbishment and charter procurement services for offshore and onshore rigs.

KS Energy said in a statement that the JV would be 75 percent owned by KS Energy with the remaining 25 percent stake held by Citra Tubindo.

According to KS Energy, Citra Tubindo has been granted approval by the relevant authorities to establish an oil rig inspection centre (ORIC) on Batam Island to provide testing, technical inspection and mandatory certification of all drilling oil rigs operating in Indonesia.

Citra Tubindo will also set up a rig refurbishment facility on Batam Island to undertake engineering works in upgrading oil rigs.

Both the ORIC and the rig refurbishment facility are expected to commence operations by the end of this year, KS Energy said.

According to Indonesian Oil & Gas Drilling Contractors Association (APMI), up to 60 percent of its members? rigs need refurbishment

KS Energy added APMI would direct its members to approach the new facility for rig upgrading services.

JSX-listed Citra Tubindo is providing Oil Country Tubular Goods (OCTG). Meanwhile, KS Energy is an energy services group which refurbishes and leases capital equipment as well as distributes equipment, parts and consumables to the global oil & gas industry.

APMI has 135 members who own and/or operate 178 units of onshore and offshore drilling oil rigs in Indonesia. (Robert)