Ratu Prabu plans to expand into coal mining

Publicly listed oil and gas company PT Ratu Prabu Energi Tbk (RPE) plans to expand into coal mining business to turn the company into a full-fledged mining operator, Kontan reported on Saturday.

The company unveiled its expansion plan amid a renewed optimism about the prospect of its business after it managed to turn into black last year. RPE booked a net profit of Rp 27.09 billion last year after falling into red with a net loss of Rp 180.45 billion in 2009.

?We suffered a loss in 2009 due to the shutdown of our oil field in Pendopo, South Sumatra,? the company?s president director Burhanuddin Bumaras said.

RPE also provides drilling service to a number of big clients such as Conoco Phillips Indonesia, PT VICO Indonesia, PT Petro China Jabung, Kideco Energy Company and Exxon Mobil. At present, the company also operates several oil fields including the Jatibarang field in Cirebon, West Java.

Burhanuddin said that since the first exploration carried out five years ago, the company had begun production at the field with a capacity of 600 barrels per day. He said that the company was still waiting for the government approval to further expand exploration works at the field.

Burhanuddin said that the company also planned to expand into coal mining sector to take the advantage of the surge in the coal demand both at home and the overseas markets. He said that the company planned to buy coal mines in South Kalimantan for the expansion purpose.

?There are three or four coal mines in the list of our acquisition targets. There should be a decision to be made this year,? he said, adding that the company would set aside about US$30 million for the coal mine acquisition. (*)