KS Energy to enter Indonesian drilling services

Singapore's KS Energy Services Limited said on Monday that its subsidiary Harta Offshore & Marine Services Pte Ltd had entered into a letter of intent with a North Asian oil company to provide and operate a floating warehouse to support the latter's drilling operation in Indonesian waters.

?Harta has procured a vessel for conversion into a floating warehouse and the vessel is expected to be operational before the end of 2005,? KS Energy said in a statement.

The firm did not provide the name the North Asian firm.

The firm said it would get a "charter income" of up to US$8 million from the provision of the service over the period of 18 months. The floating warehouse will support the drilling of one well by the North Asian firm with an option of supporting the drilling of two other wells.

According to the statement, KS Energy owns a 50 percent stake in Harta. The reamining 50 percent is owned by Cooper's Mechanical Oilfield Services Pte Ltd which will provide Harta with the necessary expertise to operate the floating warehouse. (Robert)