INTEGRATED OIL AND GAS SERVICES

In the past year, PT Mitra Rajasa Tbk. (MIRA) has made a series of strategic acquisition of oil-and-gas drilling exploration and production assets.  This has made MIRA into a fast growing force in the integrated oil-and-gas services industry.  MIRA has the largest and growing fleet of land and marine rigs and FPSO in the region, in addition to its long-established trucking fleet for the cement industry.’

For many years, MIRA has been known as a publicly-listed cement transportation company with more than 1,000 trucks to its fleet.

Then, in 2007, an ownership and management transition brought MIRA into the business of oil-and-gas services for the first time.  The transition involved MIRA acquiring an experienced oil-and-gas service operator that owns and operates an FPSO (floating, production, storage and offloading) vessel off the coast of Madura, under an on-going contract with Santos (Sampang) Pty.Ltd.

In order to consolidate its strategic entry into oil-and-gas, MIRA almost immediately thereafter began negotiation to acquire PT Apexindo Pratama Duta Tbk. (APEX), Southeast Asia’s largest oil-and-gas drilling service operator with a total of 14 onshore and offshore rigs that are all fully utilized throughout the world’s largest Archipelago.

The talks began in earnest in March 2008 and the final deal was signed and closed on 10 September 2008.  With this acquisition, MIRA then proceeded to reorganize the Group to become an integrated oil-and-gas exploration and production service provider, by among other things, transferring the FPSO asset from Sabre Systems International Pte.Ltd. (SSI) to Apexindo Raniworo Pte.Ltd.

Our mainstay oil-and-gas operators are Sabre Systems International Pte.Ltd. (SSI), PT Pulau Kencana Raya (PKR), PT Pulau Kencana Oilfield Services (PKOS), Sabre Offshore Marine Pte.Ltd.(SOM), SSI Offshore Pte.Ltd. (SSIO) and Mira International Holdings Pte.Ltd. (MIH).  The structure of the MIRA Group is presented below, with MIH owning 98.14% of APEX.

INCREASING VALUATION

With the acquisition of APEX, MIRA’s assets have more than quadrupled in one bold stroke.  Together with the FPSO, the combined asset value of APEX’s 14 rigs as of 3Q08 amount to more than USD 900 million and quickly approaching one billion dollars.  One FPSO is currently under construction and another in on the drawing board, firmly on order.

MIRA’s bold move to become a key and strategic player in the lucrative energy field in the rapidly expanding economies of Southeast Asia has generated great interests among investors.  This is evident from the value of MIRA shares that has increased by some 10-fold since the FPSO acquisition in late 2007.  Not only have the shares increased in value considerably, the shares of MIRA are now included in the LQ-45 index of Indonesia Stock Exchange (IDX) – the market index that tracks the movements of the 45 most liquid stocks of IDX.  Not only that, MIRA has also been included in one of the Morgan Stanley Capital International (MSCI) indices, the MSCI Indonesia Index, which tracks Indonesia-listed stocks that together account for 75% of the IDX total market capitalization*.

*Source : MSCI Indonesia Index news

GOING FORWARD

In addition to the oil-and-gas sector, MIRA operates one of the largest trucking fleets in the country serving the cement industry.  With some 1,000 trucks plying the highways of Java from West to East, our trucks transported more than 2.2 million tonnes of cement in 2007, and are expected to carry up to 3.1 million tonnes in 2008.

MIRA’s strategy for sustainable long term growth is build around the three inter-related businesses of energy, transportation and logistics.

In the energy sector, our services to the oil-and-gas industry provides us with the strategic and unique platform to capitalize from the strong market demand for oil-and-gas as the primary energy sources to fuel economic development in these parts of the world for some time to come.  In the transportation sector, MIRA has close to 30 years of experience in transporting industrial goods – primarily cement – throughout Java with its continuously growing trucking fleet.  Finally, in logistics, MIRA will have the ability to leverage on both its energy and transportation businesses to cater to the logistics of major infrastructure projects, today and in the future.

“The combination of substantial land and marine rigs, FPSO vessels, energy exploration and production, support services, and land transportation allows MIRA to expand rapidly in the oil-and-gas and infrastructure-related services business.”