A US small business will use a loan from the Overseas Private Investment Corporation (Opic) to provide oil and gas well cementing services in Indonesia, helping improve energy infrastructure and efficiency in the country by filling an investment gap in the industry.
Opic will provide a US$4.5mn loan to PT Tucan Pumpco Services Indonesia for the establishment of oil and gas well cementing and maintenance services to support the operation of oil rigs in Indonesia. The company will bid on contracts for work with the major oil and gas companies operating in Indonesia, and undertake smaller projects, too.
Tucan Indonesia has established bases of operations in Java and Sumatra, where most of the country’s oil and gas is produced, as well as an office and laboratory in Jakarta.
Well cementing is one of the most important aspects of oil or gas production – without proper cementing of well shafts, oil can be lost and production rates slowed – but a shortage of oil services providers in Indonesia has resulted in insufficient investment in the service. By filling this niche, Tucan Indonesia will improve the efficiency of Indonesia’s energy infrastructure.