KS Energy to set up JV with Pertamina Drilling
Tuesday, August 27 2013 - 01:40 AM WIB
SGX-listed KS Energy Limited announced several new developments with PT Pertamina Drilling Services Indonesia (PDSI), a subsidiary of Indonesian state-owned oil and gas firm Pertamina in the following statement received Monday.
These developments intend to strengthen the relationship between the entities after successfully commencing operations of an offshore jack-up drilling rig and two onshore drilling rigs so far in 2013. The jointly operated drilling rigs are valued at around US$130 million. The new joint venture (JV) company will also tender for new contracts and thereby further reinforce the Group?s position in the Indonesian oil and gas market.
Indonesia is stepping up efforts to increase its oil and gas production in the country. To support its drilling operations, it is expected to need many more offshore jack-up drilling rigs over the next few years. On this front, KS Drilling Pte Ltd (KSDR), an 80 percent owned subsidiary of KS Energy, is working closely with PDSI to firm their relationship through the establishment of a new joint venture company through its Indonesian incorporated subsidiary PT Atlantic Oilfield Services.
To date, KSDR together with Batam-based PT Citra Tubindo Engineering have supported the needs of PDSI through the supply of two high specification land rigs now operating in Cepu, East Java.
Commenting on its latest developments, Kris Wiluan, Chairman of KS Energy said: ?The drilling activities in Indonesia, one of South East Asia ?s large oil and gas markets, are picking up speed. The partnership between PDSI and KSDR will release many opportunities for us to participate in the drilling activities in the country. More importantly, the capabilities within both KS Energy and the Citra Tubindo Group will enable us to better serve the needs of Indonesia and help the country step up its oil and gas production efforts.?
Editing by Reiner Simanjuntak