Energy Ventures wants to set up base in Batam<\/p>\n
SINGAPORE (Reuters): Energy Ventures Inc (EVI), U.S.-based
\nmanufacturer of oil field products, is seeking to establish a
\nworld class production site on Indonesia's Batam island, a senior
\nEVI official said on Thursday.<\/p>\n
\"We are going to develop a manufacturing presence in Batam for
\ncompletion tools and offshore equipment. I can assure you
\ndevelopments in Batam are going to be very significant,\" Bernard
\nDuroc-Danner told Reuters in an interview.<\/p>\n
\"This is a global market, we look for such locations all the
\ntime. This one (Batam) has been selected as a particularly
\nexcellent one.\"<\/p>\n
EVI earlier signed a strategic alliance with Indonesian oil
\nand gas pipeline manufacturer P T Citra Tubindo that will give
\nthe company a stake in a drilling tools plant jointly with Citra
\nin Batam which is about 20 km off Singapore.<\/p>\n
\"We are taking ownership in a plant and providing technology
\nto make a line of drilling tools. We are also going to have a
\nmarketing venture,\" Duroc-Donner said.<\/p>\n
EVI is looking to invest \"well in excess of US$10-20 million\"
\nover the next five to 10 years to turn its manufacturing base in
\nBatam into a formidable force that will raise its share of the
\nAsian market substantially.<\/p>\n
Currently, between five and 10 percent of EVI's revenue comes
\nfrom Asia and Duroc-Donner hopes to raise this to 20-25 percent
\nonce its investments in Batam are completed.<\/p>\n
Its current revenue share from Asia, he said, is \"completely
\nout of synch with the importance of the market.\"<\/p>\n
Duroc-Donner said group revenue in 1997 is expected to reach
\naround US$850 million compared to US$478 million in 1996.<\/p>\n
\"Wall Street expects revenues to be circa $1.3-1.4 billion in
\n1998, which is not unreasonable,\" he said.<\/p>\n
EVI has a drilling tools plant in Singapore which contributes
\naround US$10-15 million to group revenue but the plant will not
\nbe expanded as the focus of its manufacturing site is now on
\nBatam, Duroc-Donner said.<\/p>\n
The company has around 50 manufacturing plants and almost all
\nof them are located in North and South America.<\/p>\n
On the financial and monetary crisis sweeping Southeast Asia,
\nDuroc-Donner, who has faced similar turmoils in South America and
\nMexico where the company has a big exposure, said that the impact
\non oil and gas exploration would be minimal.<\/p>\n
\"In spite of all these things, hydrocarbon demand has
\ncontinued to grow. We would have had a higher growth but now this
\nwill put a dent in the demand,\" he said.<\/p>\n
Duroc-Donner said that the company was also attracted to the
\nregion by the tremendous oil and gas exploration works that are
\ntaking place, especially the multi-billion dollar Natuna gas
\nfield developments.<\/p>\n
Natuna is the biggest gas field development in Asia with 222
\ntrillion cubic feet of general reserves of which 46 trillion are
\ncommercially recoverable.<\/p>\n
The first gas is expected to be recovered in 2003 with
\ninvestments running into over US$40 billion for the entire
\nproject.<\/p>",
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