Singapore firms eye Apexindo?s jack-up rig project
Thursday, April 3 2003 - 07:50 AM WIB
The rig, used for drilling in deep waters, will add to Apexindo's current fleet of four offshore and 11 onshore rigs but, more importantly, it will boost the company's ability to secure major oil drilling contracts in the Persian Gulf, the Indian Ocean and in South-east Asian waters.
'We have an offer from a Chinese company, but they have never built jack-up rigs before and Korea is now too expensive,' Hertriono Kartowisastro, Apexindo's president director told Business Times.
He hinted, therefore, that the company was leaning towards giving the contract to one of the two Singapore yards.
'We are hoping to sign the contract before the end of the year and both the Singapore companies have very good designs, so it will come down to the price,' Mr Hertriono added.
If Keppel Fels does clinch the deal, it will be the third major rig the shipyard will have built for Apexindo. In February, it completed a US$50 million purpose-built submersible drilling barge that is the only one of its kind in the world. In May, it will complete a similar drilling barge for Apexindo.
But it is in owning and operating jack-up rigs that Apexindo sees the greatest potential for growth in both revenue and scope of operations.
The US$200 million company that is listed on the Jakarta Stock Exchange is hoping to improve on its annual 18 per cent growth rate this year with the additional drilling rigs.
'There is now growing demand for new and better designed jack-ups given that many existing jack-ups are over 20 years old and will be phased out soon,' Hertriono said. 'Even with the war in Iraq, we have clients in Qatar and Iran who want to hire our rigs and we are negotiating for longer-term contracts.' The company's future growth, he added, depended on securing major offshore drilling contracts and, in doing so, it will be competing with the big boys. It is therefore critical for the company to add more rigs to its existing fleet. (*)