JAKARTA – PT Ratu Prabu Energi Tbk (ARTI) has divested an asset in the form of rig unit type 460K Snubbing Unit owned by its subsidiary, PT Lekom Maras, for USD 2,5 million last Monday (5/2).

According to the information disclosure in Indonesia Stock Exchange today (6/2), the buying party is Santricus Oilfield & Natural Gas Equipment & Spare Part Trading Co. LLC (Saint), a company unaffiliated to both ARTI and Lekom Maras.

The management also revealed the underlying reason of divestment, which is low rig utilisation rate. “For +/- 10 years, utilisation of rig 460K only totalled +/- 9 months, thus economically less productive,” admitted the management.

In addition, rig 460K owned by the company is said to be less suitable for domestic use, as its weight only fits for newer platforms. “In Indonesia, for onshore, they prefer conventional rigs,” added the management.

The divestment proceeds, of USD 2.5 million, will be allocated to pay off maturing obligations. According to ARTI’s management, this transaction is projected to improve the working capital and financial position of Lekom Maras.

This transaction cannot be categorised as material transaction, as the value was less than 10% of ARTI’s total assets. Until December 31, 2022, ARTI’s equity as still at deficit, reaching minus IDR 156.05 billion. (ZH)