ACQUISITION OF A NEWLY BUILT MID-SIZED AHTS VESSEL BY INDONESIAN SUBSIDIARY
read in detail here;
In short, the acquisition was done to support its market position quickly in OSVs in Indonesia, as it would take at least 18 months to build one. The vessel is already undergoing re-flagging to an Indonesian flag and is expected to be chartered soon to a leading oil company for deployment in Indonesian waters.
The limited supply of Indonesian flagged vessels puts MPM in good position, via its 49.6%-owned subsidiary, PT BBR. The company is wasting no time in increasing its supply of vessels for chartering services amid robust demand in Indonesian waters. MPM intends to build bigger vessels such as the AHTS and prepare itself to handle more sophisticated vessels and massive steel work modules. These modules hold piping, cables, valves and equipment and many of them are linked together in the development of giant refinery plants.
What role does an AHTS play?
AHTS are used mainly in offshore support activities and production/maintenance. Exploration-type AHTS are also used in supporting drilling activities in both exploration and development.
Indonesia's cumulative O&G production is about 90% onshore, with its offshore basins largely under-explored.
As of 2012, Indonesia's aging infrastructure and fields suggest that it may struggle to meet production targets in the short term. The government has been encouraging increased exploration with incentives.
In May last year, the Indonesian government agreed to give a higher share of oil to companies operating under the production sharing contract for deepsea explorations. The government will take 65% and the remaining 35% of oil production goes to the contractor. Previously it was 85:15. More details here;
In April this year, the Indonesian government announced that companies involved in the O&G and geothermal exploration are able to get tax incentives, more details here;