The Clough group’s 82%-owned Indonesian subsidiary PT Petrosea Tbk has negotiated a A$28 million (US$20 million) extension through to December 2004 of its long-term coal overburden stripping contract in east Kalimantan. Clough is an Australian engineering company.
The contract for the Indonesian-owned company PT Gunungbayan Pratamacoal (GBP) was first awarded to Petrosea in November 1999 Ð at the time it was one of the biggest contracts in Clough’s then 34 years of operating experience in the country.
Successfully completed last month after 52 months, the contract for GBP had generated A$172 million (US$100 million) revenues for Petrosea.
The eight month GBP contract extension follows last month’s announcement that a joint venture of Clough’s Offshore Division and Petrosea had been awarded a A$93 million (US$65 million) engineering, procurement and construction contract by operator BP West Java for the APN gas field development in the West Java Sea.
In a statement, David Singleton, Clough’s CEO and managing director, said:
“The extension of the GBP contract further confirms our decision not to proceed with the strategic goal to sell down the group’s interests in Indonesia.
“Opportunities are now emerging in the country which meet Clough’s new guidelines for acceptable contract margins, return on capital and levels of risk. This has given us much greater confidence of being able to achieve sound business growth in Indonesia and we are actively seeking similar extensions and new contracts in mining and construction throughout the country.”
GBP mines high quality coal in east Kalimantan which is exported to Asia and Europe through Balikpapan.