PT Apexindo's Soehanah Jackup Passes 80% Completion Mark

On September 26, 2006, PT Apexindo said the Soehanah jackup has successfully completed a launching test at PPL Shipyard Ltd., Singapore. This event marks an important milestone in the whole construction phase of the Soehanah, where it signifies the jackup achieving an 80% completion. The Soehanah is expected to be completed as scheduled, and plans to leave the shipyard by January 2007.

Mr. Hertriono Kartowisastro, President Director of Apexindo said "The launching test, where the Soehanah is launched into water for the first time, is an important milestone within the whole construction stages of the rig. Apexindo puts in a great deal of hope in PPL Shipyard as one of the best shipyards in the world, to complete the construction as scheduled. We have faith in PPL Shipyard's ability to construct the finest quality rigs. We would like to express our deepest appreciation to the team members for their dedication and hard work, including the team from Apexindo stationing at site supervising the construction."

Mr. Ong Tian Khiam, Managing Director of PPL said "We are pleased that Apexindo, the largest Indonesian drilling contractor in South East Asia, has placed great trust in us for their newest jackup construction. We are committed to ensure that we deliver high quality premium rigs to our customers. The success of the launching test is testimony of the team work and efforts put in by all members in ensuring high quality standards and work safety."

Although still under construction, the Soehanah has already secured a 3-year long-term contract valued at US $170 million with Total E&P Indonesie for deployment in their gas field project in Sisi and Nubi, East Kalimantan. Built based on the Baker Marine Pacific Class 375 Deep Drilling Jackup design, it will be capable of operating 375 feet water depth, drilling down 30,000 feet and accommodating 120 men.

"We are very delighted with the continuous trust given by Total to us, to be involved in their gas projects in Indonesia. The fundamentals for sustained exploration and production activities remain strong. Apexindo's participation in this project shows Apexindo's commitment and support of the Indonesian government's strategy to increase the national energy production", said Hertriono.

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