Price of Oil Rig Rentals Soar
Friday, 21 April, 2006 | 12:38 WIB

TEMPO Interactive, Jakarta: The rise of the world's crude oil prices to beyond the US$70 per barrel level has caused a rise of 300 percent in the price of oil drilling rig rentals.

In addition, the number of rigs number is limited and the demand is very high.

“This increase is due to the euphoria of oil businesspeople who want to drill because of the high oil prices,” said Ade R Satari, Secretary of PT Apexindo Pratama Duta, in Jakarta yesterday (20/4).

As an example, the 'Raniworo' rig belonging to Apexindo has been rented by Santos, an oil and natural gas company, for US$145,000 per day.

At the end of 2005, the rental price was only US$50,000 per day.

Ade explained that Apexindo have signed the rig rental contract for a maximum of three years.

“Many other companies have offered rigs with similar specifications as Raniworo's for US$160,000,” he said.
Rig contracts are limited to three years because oil prices are hard to predict.

Muhamad Fasabeni