SembCorp, Tubindo tie up

SembCorp, Tubindo tie up

SINGAPORE (AFX-ASIA): SembCorp Logistics Ltd said wholly-owned unit Singapore Offshore Petroleum Services has entered into a S$17 million joint venture deal with PT Citra Tubindo to set up a network of offshore oil and gas logistics supply bases in Indonesia.

The joint venture will be owned 70 percent by Singapore Offshore Petroleum and 30 percent by Citra Tubindo and will be incorporated in Indonesia.

Initially, it will spend S$1.7 million to build the first supply base in Batam Island.

The Batam project, which will start to operate in October this year, will cover five hectares of land which will be expanded to 10 hectares within two years. It will involve 1,000 square metres of warehousing space and a jetty, it added.

A number of forward bases will be built in other parts of the country, including in Matak Island, Balikpapan, Dumai, Irian Jaya and possibly in Kupang where oil and gas fields are situated nearby. They will be operational within three years, it said.