SOPS ties up with Citra Tubindo to tap Indonesian oil and gas market
Thursday, August 3 2000 - 04:00 AM WIB
Singapore Offshore Petroleum Services (SOPS), a wholly-owned subsidiary of listed SembCorp Logistics, has set up a joint venture company with Indonesian listed company, PT Citra Tubindo, Tbk, to service the lucrative oil and gas logistics market in Indonesia.
The joint venture company plans to invest some US$10 million (S$17 million) to set up a network of offshore logistics supply bases throughout Indonesia.
For a start, it will invest US$1 million ($1.7 million) to set up an offshore logistics supply base on Batam island.
A five-hectare plot of land located in Kabil which is on the eastern section of Batam island has been set aside for this purpose. This will be expanded to 10 hectares within two years.
About 1,000 square metres of warehousing space will be built on the land. A jetty will be added to service supply vessels, barges, seismic and survey vessels and mooring of rigs. Engineering and hydrographic evaluation for the development of the jetty will be conducted soon.
The Batam supply base is scheduled to start operations in October.
Apart from the supply base in Batam, the joint venture company will also be setting up forward bases in Indonesia such as the Matak Island for the huge Natuna gas fields, Balikpapan for Kalimantan, Dumai for Sumatra, Irian Jaya and possibly Kupang for Timor Sea. These forward bases are likely to be on-stream within three years.
SOPS will own 70 per cent equity stake in the new company which will be incorporated in Indonesia. PT Citra Tubindo, Tbk will own the remaining 30 per cent.
Mr Koh Soo Keong, President of SembCorp Logistics and Chairman of SOPS, said: "The oil and gas market in Indonesia is a very important and prospective market for SOPS' business. By having a physical presence in this country and with the support of a strong local partner in Citra Tubindo with its extensive experience and network in the Indonesian oil and gas industry, we will be better able to position ourselves as the premier integrated offshore logistics player in Indonesia.
"At the same time, we will also be able to extend our oil and gas logistics exchange to support the e-fulfillment services," he added.
SOPS recently launched its e-business portal to serve the oil and gas industry by leveraging its existing community of about 200 oil and gas related companies operating at the Loyang Offshore Supply Base in Singapore.
The joint venture agreement was signed this morning (July 25, 2000). Signing on behalf of SOPS was Mr Koh, while Mr Kris Wiluan, President Director of PT Citra Tubindo, Tbk sealed the deal for his company, and witnessed by Mr Ismeth Abdullah, Chairman of Batam Industrial Development Authority and Mr Wong Kok Siew, Deputy Chairman and CEO of SembCorp Industries and Chairman of SembCorp Logistics. (*)