Apexindo Rig 15 has also received new contract confirmation from PEARLOIL (Tungkal) Limited valued at approximately USD 2.6 million for a drilling project in Tungkal, Jambi. Further, Rig 8 has won a contract from Lundin Blora BV worth around USD 2.5 million for a drilling program in Blora, East Java. Apexindo Rig 2 has also obtained contract valued around USD 3.5 million from JOB Pertamina-Medco Tomori for a drilling project in Tomori Block, Sulawesi.
Apexindo's accomplishment in obtaining contracts for its onshore rigs demonstrates that even though the competition in the land drilling market is very intense, Apexindo still manages to participate in that segment. Currently, all land rigs that have secured new contracts or extensions are on preparation and are expected to operate at maximum capacity.
"We are delighted that our land rigs successfully obtained contracts soon after they completed the drilling projects from previous clients. Our success in obtaining contract without waiting period will give positive impact to our land rig utilization," explains Hertriono Kartowisastro, President Director of Apexindo
Up to this point, Apexindo's largest Revenue contribution comes from the offshore rig segment. The Company's ability to obtain new contracts proves that land drilling market in Indonesia is still promising. Hertriono explains, "The Company will always be proactive in participating on land and offshore drilling tenders, to assure Apexindo's position as the leading drilling contractor, not only in the offshore drilling segment but also in the land drilling segment, in Indonesia and South East Asia Region".
Agustinus B. Lomboan, the Company's President Director adds, "The increase activity in land drilling business in Indonesia provides positive impact to Apexindo in which it has competitive advantage for owning large horse power specification on most of its land rigs. Furthermore, the high level of land rig demand directly affects dayrates. This situation will definitely boost contribution from land rig segment coupled with higher profit margin. Driven by the consistency to promote efficiency and substantial growth not only from the offshore segment but also from the land rig segment as well, Apexindo's profitability is expected to improve significantly this year. This will definitely give opportunity to the Company to offer higher return for its Shareholder".
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