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Report: Logindo bags contract from ENI, eyeing US$200 mln new contracts

JAKARTA (Rambu Energy) -PT Logindo Samudramakmur Tbk (LEAD.IJ), an offshore support vessel company, has won a long-term contract (3 years) worth US$30 million from a new customer ENI, an Italian giant oil and gas company.

UOB Kay Hian said in an investor note that based on its recent discussion with the Logindo management, Logindo is also bidding for US$200 million worth of new contracts.

Under the contract, Logindo will provide a 12,000 bph AHTS (anchor handling tug supply) vessel. The company is also among the last two bidders for a 3-year PSV (3,500 dwt) tender for a similar contract value.

In addition, Logindo is also bidding for the Chevron’s Indonesia Deepwater Development (IDD) project in Makassar Strait which requires two platform supply vessel (PSV) and one fast supply vessel (FSV) for a 5-year term worth US$96 million as well as a AHTS 96,000 bhp (bollard pull horse power) 3-year contract from Petronas.

According to the brokerage firm, Logindo’s fleet utilization is expected to remain high at current 85 percent levels while day rates are expected to “stay flat”, said UOB Kay Hian

Logindo, it added, enjoys higher utilization than peers due to its young downtime; relatively long-term contracts; and strong client relationships which allow one month of free maintenance a year.

Recently, Longido added a new customer, Pertamina Hulu Energi (PHE) Nunukan, which contributed to nearly 23 percent of its first half 2014 revenue. The addition helped Logindo diversify its client base, instead of relying on its long-term client Total’s Mahakam Block.

At present, income from Total’s Mahakam Block is accounting for about 47 percent of its total revenue, down from close to 70 percent last year.

Logindo has also secured the Total E&P Mentawai contract worth US$3.7 million and PHE WMO contracts worth US$10.6 million.
In July, Total E&P Indonesia Mentawai B.V. (TEPIM) has start its deep-water drilling at Rendang 1X well in Bengkulu I Mentawai Exploration Block.

The French giant oil and gas company utilizes the Ocean Monarch rig (a Semi-Submersible rig) on Bengkulu shore, 75 kilometers off Bengkulu coastline.

“With the recent contract wins worth US$30 million from ENI, we expect revenue from customer base to further diversify in subsequent quarters,” UOB Kay Hian noted. (RE-RK)

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