Schlumberger to stay in Indonesia despite business setback

JAKARTA (JP): PT Schlumberger Production Services Nusantara, an international oil field services company with US$160 million invested in Indonesia, reaffirmed its commitment to the country despite a plunge in its revenue.

Industry relations manager Suhadi Dwijomartono said the 30 percent to 40 percent drop in revenue in the first six months of the year was largely the consequence of a decline in activity in the oil industry, resulting from a slump in world oil prices at the start of the year.

However, he said he was optimistic about the future of Indonesia's oil and gas sector, pointing to the company's recruitment of engineers and scientists this year in anticipation of an upswing in business.

The United States-based Schlumberger has operated in Indonesia since 1930 and currently employs some 2,200 people in the country.

The company offers oil field services, including oil exploration and drilling. The company expanded into project management, information technology, manufacturing metering and electronic transmissions in the 1990s.

In the beginning of the year, a number of oil companies in Indonesia reduced drilling and exploration activities as oil prices dropped to as low as US$9.90 a barrel in February.

Many of the companies have failed to expand their activities despite a rise in oil prices to around $20 a barrel, citing uncertainty over the economic and political condition in Indonesia.

During a presentation at the Investment Coordinating Board, Suhadi said Schlumberger planned to merge two of its subsidiaries -- PT Anadrill Services Indonesia and PT Dowell Schlumberger Indonesia -- to increase efficiency and reduce costs.

Anadrill offers exploration services and has assets totaling $14 million, while Dowell provides drilling services and has $26 million in assets.

Schlumberger's other five subsidiaries are PT Geco Indonesia (seismic data), PT Schlumberger Geophysics Indonesia (exploration and production), PT Sedco Forex (offshore drilling), PT Omnes Services Indonesia (information technology) and PT Mecoindo (manufacturing transmission and electronic devices).

Schlumberger is listed on the New York Stock Exchange and operates in 100 countries with over 65,000 employees.

It has three offices and 14 areas of operation in Indonesia.

"We value our employees and we are investing 5 to 6 percent of our total revenue every year on technology research and human resources training," Suhadi said. (02)