Oilfield to produce offshore oil exploration equipment in Batam

PT Oilfield Machining and Fabrication, a joint venture of several foreign companies, will set up a steel fabrication plant in Batam, with initial investment of US$500,000, Bisnis Indonesia reported on Friday.

The company will produce offshore exploration facilities and oil drilling machines for oil companies operating in Indonesia. In addition, the company will also offer maintenance services for the existing offshore oil exploration facilities.

The company will have a capacity to produce 1,000 tons of steel fabrication a year and to produce 300 tons of oil drilling machines a year, a source told the daily. The company, which obtained its investment permit in May, is expected to begin its commercial production in June 2005, the source said. (*)