Malaysia-listed engineering services provider PJBumi has announced significant expansion plans involving the acquisition of drilling rigs and the establishment of a manufacturing joint venture, with a clear focus on deploying assets and services in Indonesia.

Drilling Rig Acquisition

PJBumi has agreed to a $40 million deal to purchase five drilling rigs from China's Gaoyou Hao Xiang Petroleum Machinery, a subsidiary of the Intlef Group. The purchase comprises two 750HP AC rigs for $16 million and three 550HP AC rigs for $24 million. These rigs are to be built in China within a 120-day period.

Strategic Context for Indonesian Operations

This acquisition follows PJBumi's earlier success in securing a key contract in Indonesia. In September, through its subsidiary Indodrill Bumi Perkasa, the company won a $6.6 million integrated project management (IPM) agreement with operator Petro Papua Mogoi Wasian. This 18-month contract, running until March 2027, covers the procurement and drilling services for three new wells and the workover of eight existing wells in the Mogoi Wasian area of Papua.

Manufacturing Joint Venture

Concurrently, PJBumi is deepening its partnership with the Intlef Group by establishing a manufacturing plant in Malaysia. A new joint venture will be formed between PJBumi's wholly owned subsidiary, PJBumi Heavy Engineering & Services (PJBumi HES), and Intlef Horizon Pressure Control (Jiangsu). PJBumi HES will hold a 60% stake, with Intlef owning 40%.

The venture aims to manufacture and assemble oilfield equipment, specifically targeting the wellhead control and blowout preventer (BOP) market. This move is intended to transition PJBumi HES from an equipment importer to a local manufacturer or assembler. The plant is planned for PJBumi's land in Kedah, Malaysia, or another mutually agreed location, and will serve projects in Malaysia, Indonesia, and other regions.