PT PAL to focus on oil rig construction

The Surabaya-based state shipbuilding company PT PAL will focus its activities on the construction of oil rigs in order to improve the company?s weak financial performances, Kontan reported on Thursday.

At present, PAL is building two oil rigs ordered by foreign companies Petronas of Malaysia and China National Offshore Oil Corporation (CNOOC) International Ltd, which would use the rigs to support their oil and gas exploration and production activities in the country.

PAL?s corporate secretary Elly Dwirat Manto said Petronas had ordered a rig worth about US$47 million while CNOOC ordered a similar rig worth about $53 million. It is not the first time for the company to build an oil rig. ?Since 2005, PT has built four rigs ordered by Kodeco, Pertamina, CNOOC and Santos,? Elly said.

She said that Petronas would operate at its new rig at the company?s Bukit Tua oil field, part of the Ketapang block in East Java, while CNOOC would operate its rig at its Banowati field in Madura.

The company expected there would be more orders for rig construction in the future in line with increase in oil and gas exploration and production activities in the country. (*)