Star Phoenix (AIM: STA), an international company with an oilfield services business in Trinidad and an oil and gas interest in Indonesia, provides the following update in relation to its oilfield services business (RRDSL).

The Company has had to take the necessary steps to further cut the ongoing costs of RRDSL in light of the COVID-19 pandemic which continues to negatively impact businesses worldwide. As part of the cost reduction programme, the Company completed a comprehensive organization restructuring of RRDSL along with other cost cutting measures. It is expected that during the current financial year (FY2021) there will be a targeted 85% reduction in the annual operating costs compared with the prior financial year.

The Company also signed an agreement with a third-party operator to dry lease some of the equipment including mud tanks and a generator to derive additional revenue.

In addition, agreements were signed to sell four smaller production rigs for a total sum of US$0.2 million. The Company continues to evaluate sale opportunities of the remaining eight rigs including four modern drilling rigs and will provide an update upon any material developments.

KeyFacts Energy Industry Directory: Star Phoenix Group