News & Events

News & Events

PV Drilling implements procedures to establish a joint venture in Indonesia

Petrovietnam Drilling & Well Service Corporation (PV Drilling) has announced a Resolution of the Board of Directors on approving the overseas investment plan in the form of capital contribution to establish a joint venture company in Indonesia, in which PV Drilling contributes 40% of the total charter capital of 700,000 USD. Currently, PV Drilling is implementing related procedures to quickly put the joint venture company into operation in the Indonesian market. 

The proposed joint venture company will be named PT PetroVietnam Drilling Indonesia (abbreviated as PT PVD Indo) and will be organized as a limited liability company. The joint venture's operational term is 10 years and can be extended based on mutual agreement between the parties.

The primary objective of this joint venture is to provide jack-up drilling rig rental services and well services to support exploration and exploitation activities in the Indonesian oil and gas market. 

Indonesia is one of the markets with the highest demand for drilling rigs in Southeast Asia. This demand remains stable and is expected to increase in the coming years, with an average annual requirement of 14-16 jack-up rigs, often for long-term drilling programs. Establishing a joint venture in this market provides a solid foundation for PV Drilling to maintain a stable and long-term workload for its existing rig fleet, while simultaneously executing a growth strategy through additional rig investments in the future. 

Two years ago, from December 2022, PV Drilling began providing drilling services in Indonesia after a decade of efforts to penetrate this largest and most demanding market in the region. The company also has a project management office in Jakarta. PV Drilling's largest client in Indonesia is PT Pertamina Hulu Energi Offshore Northwest Java (PHE ONWJ).


PV Drilling will simultaneously operate two drilling rigs, PV DRILLING II and PV DRILLING III, in Indonesia starting from 2025

Currently, PHE ONWJ is using the jack-up rig PV DRILLING II to execute drilling operations in the Northwest Java Sea. This sea area is rich in natural resources and plays a significant role in Indonesia's annual oil and gas exploration and exploitation strategy.

In March 2024, PV Drilling and PHE ONWJ held a contract kick-off meeting in Indonesia to prepare for the mobilization and operation of the PV DRILLING III rig for a guaranteed 3-year drilling program and a 2-year optional extension for clients PHE ONWJ and PHE OSES in the Northwest Java and Southeast Sumatra regions of Indonesia. The drilling campaign is scheduled to begin in 2025. 

Most recently, on November 19 2024 in Indonesia, PV Drilling, together with its partner PT Jimmulya, signed an appendix to extend the contract for providing the PV DRILLING II rig to PHE ONWJ. Accordingly, the PV DRILLING II rig will continue to serve PHE ONWJ's long-term drilling campaign in the Northwest Java Sea offshore Indonesia for an additional guaranteed 3 years, expected to extend to the end of 2028.

Therefore, with the operating of both the PV DRILLING II and PV DRILLING III rigs simultaneously in Indonesia starting from 2025, PV Drilling will become the largest drilling contractor in this market.

After two years of official operation in Indonesia, PV Drilling has established a strong partnership with clients and has been highly regarded for its reputation and rig operation capabilities, as well as its effective network of partners and suppliers supporting rig operations. This achievement also creates favorable conditions for PV Drilling to promote its well services business in Indonesia in the future. The joint venture in Indonesia is also a preparation step for PV Drilling to mobilize the total resources of the Corporation and its member units, research and deploy technical bundle services, creating a better competitive advantage to develop market share in Indonesia, and at the same time playing an important role in creating jobs, ensuring stable and continuous operation for the rig fleet and well services.

PV Drilling's PR Team.

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