PT Apexindo has been awarded an extension contract from Total E&P Indonesie for the barge rig Raisis. This contract is part of Total's drilling program located in Tunu area, East Kalimantan.
The contract obtained by Apexindo is valued approximately US $43.9 million for a firm period of 1 (one) year with optional period of another 1 (one) year, thus the contract will end at the end of 2010.
Total is the largest gas producer in Indonesia and possesses long term commitment with the government of Indonesia to conduct exploration and production activities in Indonesia especially in East Kalimantan. “This contract demonstrates Apexindo’s participation to support domestic energy production. We believe that drilling activities being conducted by our rigs, particularly in East Kalimantan, are capable of sustaining continuous supply to fulfill the demand of regional gas market. On the other hand, the contract is also an affirmation of Total’s trust on Apexindo’s capability in encouraging cost efficiency without sacrificing the quality of service,” Hertriono Kartowisastro, Apexindo’s President Director explains.
The new contract achievement is in line with Apexindo’s strategy, which is to focus on long term contracts and clients with sizable reserves. Suarmin Tioniwar, Apexindo’s Finance Director further explains “Apexindo always capitalizes on strong demand for offshore drilling rigs as in this new contract achievement; Apexindo earns an adjustment on its dayrate. The new dayrate will be applicable for full year in the years to come as the rig will be fully utilized. This condition will substantially provide a boost for growth in the long run in which subsequently increases Apexindo’s ability to provide greater return for shareholders.”
The Raisis is one of Apexindo’s four swamp barge rigs being contracted by Total for exploration and production activities in East Kalimantan and the rig has been in full operation for Total since April 2001.
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