Tito Kurniadi, Chairman of Association of Drilling Oil & Gas Indonesia Geothermal (APMI): "We have enough rigs for drilling"

In this post, I want to have a brief look on the rigs count in Indonesia. Generally speaking, rig counts represent how many rigs are actively drilling for hydrocarbons. The most authoritative in industry is Baker Hughes that reports rig count every week, summarizing over the year. It is natural, that the more rigs are in business, the more money comes for the companies. Thus, each company determines their spending as related to the global economic environment. In recent year, with high oil prices, globally producers are employing more rigs. As an example, in the USA since beginning of the year until June the rig count increased by 88. At the same time, the prices for natural gas are going on the lower side – thus, in the last months the natural gas rigs number is going down. On the other hand, – when thinking about future - more rigs drilling generally means companies feel bullish on the environment – and more rigs – more expected supplies in future.
Let us look at numbers:
This is the situation with historic graph: Rig Distribution in Indonesia (2010)
Source: Baker Hughes; Compiled by Frost & Sullivan
It is obvious that for the last years the rig counts for Indonesia are going down. This is illustrated by the following data:
Source: EnergyDigger
And the latest data from Baker Hughes:

Look at the owners:
As to onshore rigs the following distribution


As of September 2012 Total E & P Indonesia owned 9 drilling rigs; 2 of them were off the coast. In 2-13 the plan was to add 2 more offshore.
Currently 54 rigs (42 Land and 12 Offshore) are active in Indonesia
  • Indonesia Gas :11
  • Oil : 43Rigs
The rig count expected to rise as drilling activity picks up. The active rig count is a good indicator of demand for products used in the oil & gas industry


In August 2006  KS Energy Services Limited from Singapore formed a JV with  PT Citra Tubindo Tbk (“PTCT”) to manage the upgrading or
refurbishment of onshore and offshore oil rigs in Indonesia as well as to procure contracts for these rigs. It took quite a while and $30 million and in May 2013 the first two skidding rigs were manufactured in Indonesia by PT Citra Tubindo Engineering (CTE) in their facility in Batam, Riau Islands. The first rig (DS-9) is owned by Pertamina Drilling Services Indonesia (PDSI); the second by (DS-8) Atlantic Oilfield Services (AOS)  and will be operated by by the Joint Operation Pertamina Drilling Services Indonesia-Atlantic Oilfield Services. The construction took 14 months and was assisted by the companies: Lee C. Moore, Lee Tourneau and NOV. Design and tower was domestic, but many components were imported from the USA.

PT Petrodrill Manufacturing Indonesia (Cibening, Pamijahan District, Bogor Regency, West Java) is reportedly capable to produce various types of drilling rigs (from 150 to 2000 HP).  Currently, the plant is capable of producing 9 rig units at the cost of each rig around U.S. $ 550,000 - U.S. $ 700,000.  Here is the picture from company’s Web-site:

In addition, the offshore drilling business potential in Indonesia is also expected to increase, given the success rate of exploration drilling on the lower ground and difficult to find large oil and gas reserves. For Indonesia, KKS which most offshore drilling activity in 2010 by Total E & P Indonesia in East Kalimantan. While most types of Rigs Offshore drilling is used to perform the type of Jack Up.

In Indonesia most rigs have been in service for over 25 years and have been inadequately maintained
In 2007 the following day rent data was revealed:
-  for 500 – 1,000 HP rigs - $ 10,000-20,000 per day
- 100,000 HP jack-up rigs - $ 150,000 per day

For those interested, I would suggest to look into the following links that provide inside knowledge on the issue discussed:
Fundamentals Of Petroleum Engineering. DRILLING OPERATIONS. Mohd Fauzi Hamid, Wan Rosli Wan Sulaiman. Department of Petroleum Engineering Faculty of Petroleum & Renewable Engineering Universiti Technologi Malaysia
© Petrosa Global Energy 2013.