Message From CEO

Dear respected Shareholders,

Year of 2019, was very challenging and not an easy year for the Company to pass. Various uncertainty situation on oil and gas industry on the global level and national influences the dynamic of government policy on national’s energy security, especially giving a privilege to State owned Company (Pertamina and its subsidiaries) to operate any expired Contract Blocks, has affected the existence of contract of company’ subsidiary and association as well as the journey of the Company's.

At the end of year 2018, the contract of subsidiary company through TAC IBN Linda Sele which dominantly contributed revenue stream of the Company, was ceased and did not obtained contract extension from PT Pertamina EP (PEP) as the holder of Work Area of Oil Field Sorong, West Papua.

To respond this situation and with our limited financial resources, the operation and business strategy year 2019 focused on 3 (three) orientation. Firstly, focus to maintain and safeguard the sole operating company’ associate in PT Indelberg Oil Indonesia through Benakat Barat Production Field in South Sumatera; secondly, redefining business on oil and gas upstream support services with lower risk through strategic alliance or partnership; thirdly, redevelop small scale quarry mining.

Our first orientation to keep maintain the company’s associate, regretfully has not resulted a positive impact, but it was beyond our control and estimation, the contract of company’s association was unilaterally ceased by PEP as the holder of Works Area in Benakat Barat Field, which in turned affected the financial performance of the Company. Our business development plan was also challenging, whereby the proposed strategic alliance in oil and gas support upstream services were delayed or even cancelled by oil and gas operator or contractors due to internal and external factors amid uncertainty of oil and gas industry. Meanwhile, on the 3rd quarter 2019, the Company realized a cooperation with the concession holder to jointly operate and manage small scale quarry mine in South Lampung with a profit sharing scheme. The production began on fourth quarter 2019, and yet, has not generated profit sharing revenue due to technical operation constraints during preparation, unfavorable heavy rain constraint, and postponement of government infrastructure project and private sector approaching to year end 2019.