Leony Aurora, Bloomberg/Jakarta, The Jakarta Post --- PT Medco Energi Internasional, Indonesia’s biggest non-state oil company, said it is “open” to selling its stake in a drilling service unit as rig rates peak, a year after scrapping a sale plan.
“For the right price, I will consider selling the stake in PT Apexindo Pratama Duta, Medco President Hilmi Panigoro said in an interview in Jakarta Thursday.
Medco in August rejected offers by Indian and Chinese companies to buy its 52 percent stake, saying the sale would make it hard to secure rigs as competition bosted rentals.
Apexindo’s stock has risen 51 percent since talks ended with companies including India’s Aban Loyd Chiles Offshore Ltd. and China Oilfield Service Ltd., boosting its market value by 2.08 trillion rupiah ($229 million).
Rig rates, which have more than tripled since 2004, may fall as about 50 new jack-up rigs are built in Asia in the next four years, Panigoro said.
“It’s a pretty good time for them to sell,” said Todd Showalter, an analyst at PT Samuel Sekuritas Indonesia in Jakarta. “Medco needs the funds to finance their exploration and production activities.”
Medco’s shares surged 9.3 percent, the biggest gain since Jan. 19, to close at Rp 4.100 on the Jakarta Stock Exchange Friday. The stock was the most actively traded by value. Apexindo’s shares gained 2.2 percent to 2,350.
Shares of Medco have risen 15 percent since Aug. 10, when the company said that it had ended talks to sell Apexindo.
Apexindo’s nett income may rise 50 percent this year and double next year as the company booked higher rates for its rigs, Panigoro said.
The unit, 32-percent owned by SeaDrill Ltd., a company controlled by Norwegian billionaire John Fredriksen, posted a $41 million profit last year, according to data compiled by Bloomberg.
Apexindo owns and operates nine onshore drilling rigs, four swamp barges and two jack-up rigs. The company’s average daily rate for onshore rigs more than doubled to $19,791 last year compared with $8,689 in 2005.
