$3.66 million contract – the first of many planned for 2019
Sapex Group Limited on Friday announced the Company has been awarded a contract from SAKA Indonesia Langkah Limited, valued at $3.66m USD, for mat supply and services in Indonesia.
This is one of several target contracts SAPEX are aiming to secure over FY 2019, and is a clear indication of renewed growth in the Indonesian Oil & Gas market as SAKA expands into an area of East Java that is a newly tapped, long-term drill site.
This growing interest in Indonesia’s Oil & Gas markets has led resource companies to explore deeper into the Indonesian jungles, where accessibility has previously been a major roadblock to greenfield opportunities.
Although there is immense value located within the archipelago’s natural resources, it is often located remotely where the tropical climate and extensive rainy season have made it difficult and costly to build traditional roads and infrastructure.
But with natural resources contributing a significant portion of Indonesia’s GDP and one of the reasons the government offers 100% cost recovery on approved government programs. Included on these programs are Sapex Group’s Dura-Base® matting system which SAPEX possesses the exclusive licence and distribution agreement for.
Securing the SAKA contract represents a major milestone for SAPEX, confirming management’s operational & revenue forecasts for the Oil & Gas market in Indonesia. The company remain committed to the vision of ensuring clients “Get In, Get Out and Leave Nothing Behind”.
With this being the first domino to fall of SAPEX’s targeted contracts for FY 2019, the company appears set for an exciting year which is expected to also include their targeted transition to ASX.
As part of this move to the ASX, SAPEX is in the final stage of acquiring PT SAS, which has acted as the Indonesian agent for the DURA-BASE matting business since 2002 and has generated in excess of AU$20 million in revenue from the mats since 2015.
Operating in a unique location where there is clear financial and sustainability incentive to utilise SAPEX’s products and services, this could be one of the most exciting companies to get exposure to.
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