PV Drilling (stock code PVD) has decided to invest $280,000 to establish a joint venture with partners specializing in providing jack-up rig leasing services and well engineering services in Indonesia.
The Board of Directors of PetroVietnam Drilling and Well Services Corporation (PV Drilling, ticker: PVD - listed on HoSE) recently approved the establishment of PT PetroVietnam Drilling Indonesia (PT PVD Indo), a limited liability joint venture in Indonesia.
PT PVD Indo will have a registered capital of 700,000 USD, with PV Drilling and its partner, PT Quest Semesta Raya, each contributing 280,000 USD, representing an 80% stake. The remaining 20% (equivalent to 140,000 USD) will be contributed by Yosep Arianto.
The joint venture will primarily focus on providing jack-up rig leasing services and well engineering solutions to support oil and gas exploration and production activities in Indonesia. PT PVD Indo will initially operate for 10 years, with the potential for an extension upon mutual agreement.
This initiative marks PV Drilling’s continued expansion in Indonesia, one of its key target markets. The country is currently undergoing extensive exploration and production drilling campaigns, driving significant demand for related services.
However, Indonesia is considered one of the most challenging markets to penetrate in Southeast Asia due to stringent protectionist policies and strict local content requirements designed to favor domestic businesses.
Despite these challenges, PV Drilling secured its first drilling contract in Indonesia in March 2022 through subcontractor PT. Jimmulya. The establishment of PT PVD Indo represents a strategic step forward in capitalizing on Indonesia’s vast oil and gas opportunities.
