PT Apexindo hopeful for more geothermal contracts in Indonesia

PT Apexindo hopeful for more geothermal contracts in Indonesia Drilling rig no. 9 of PT Apexindo, Indonesia (source: PT Apexindo)
Alexander Richter 18 Dec 2021

Indonesian drilling company PT Apexindo hopeful that growing geothermal demand materialises and provides more drilling contracts.

Indonesian drilling company PT Apexindo Pratama Duta Tbk (APEX) recorded a lower land rig utilization level this year compared to 2020. As of October 2021, APEX’s land rig utilization is at 1% while in 2020 its utilization is 4%, so a news piece by Kontan.

The utilisation has decreased from 2020 to 2021 with an offshore utilisation rate of 50% and onshore at around 1% until October 2021, so General Manager of Corporate Finance and Investor Relations of Apexindo Pratama Duta, Pretycia Darma.

A decrease of activities in the oil and gas sector and increased competition in tenders have impacted the utilisation rate of the rigs of  Apexindo.

Competition in the onshore rig segment is more fierce due to the complexities and pricing is a key element. The land rigs of Apexindo have larger power  output due to the work required. Most of the onshore drilling work of Apexindo was for geothermal projects by PT Pertamina Geothermal Energy or other players, but for oil and gas competition has had an impact despite a lot of work being done in the market.

The company’s land rigs are often not that suitable for a lot of operational activities on land, as they mostly use rigs with lower horse power.

The company though sees a lot of potential for geothermal drilling contracts baed on the hopes for an implementation of carbon pricing  and the new and renewable energy (EBT) sector presenting better value ??so that investment activities and jobs on land connected to clean energy can increase.

For now Apexindo will focus on geothermal contracts for onshore/ land-based drilling, despite the strong competition in the market.

In July 2021, Apexindo’s land rig, Rig 9 in Hululais, South Sumatra, completed a contract with Pertamina Geothermal Energy.

Source: Kontan