Production Enhancement; effort to increase

97 Management discussion and analysis 2015 annual report PT Elnusa Tbk Tinjauan operasi oPERaTional oVERViEW Tinjauan operasi segmen usaha Jasa hulu migas Terintegrasi Oilfield Services segmen usaha ini bergerak dalam bidang jasa pemeliharaan sumur dan lapangan migas, jasa pengerjaan operasi serta perawatan produksi beserta kegiatan penunjangnya. selain itu perseroan juga sedang mengembangkan kompetensi di bidang teknik peningkatan produksi lanjut. proses kegiatan usaha jasa produksi migas ini secara umum terbagi menjadi: 1. Well Services; Jasa perawatan sumur-sumur yang sudah beroperasi yang bertujuan untuk memonitor performa sumur dan meningkatkan produkivitas sumur terutama yang sudah turun produkivitasnya. 2. Engineering, Procurement Construcion EPC dan Operaion Maintenance OM • Jasa perawatan lapangan yang sudah berproduksi di antaranya dengan melakukan oM terhadap jaringan pipa yang sudah ada atau bahkan membangun pipa-pipa baru dan merawatnya • Engineering, Procurement, Construction and Maintenance epCM, pembuatan stasiun pengumpul agar produksi dari lapangan opimal.

3. Production Enhancement; upaya untuk

meningkatkan recovery factor produksi minyak dengan menggunakan teknologi inggi EOR. konsep bisnis bidang ini melalui pendekatan product line yang terdiri dari: no. Grup JasaServices Group lini ProdukProduct Line 1 hydraulic Workover snubbing group services hydraulic Workover snubbing group services hWu 2 Coiled Tubing, Well stimulation pumping group services Coiled Tubing CTu, Cementing pumping services CMT puMp 3 Well Testing services Well Testing services WT slickline services sL 4 engineering, procurement Construction, operation Maintenance engineering, procurement Construction epC, operation Maintenance oM 5 Well Completion services Well Completion services sebagian besar proyek pada segmen usaha ini merupakan proyek dengan kontrak jangka menengah dan panjang dengan sebaran lokasi proyek pada pulau sumatera, Jawa, kalimantan dan papua. berikut kontrak utama dengan nilai signikan yang diperoleh oleh Perseroan selama tahun 2015: no. Klien Client Tanggal Perjanjian Date of Agreement Periode Kontrak Contract Period Jenis Pekerjaan Type of Work Wilayah Kerja Working Area 1 Chevron indonesia 06 oktober october 2015 60 bulan months hydraulic Workover services kalimantan Timur east kalimantan 2 pertamina gas 02 Februari February 2015 12 bulan months engineering, procurement Construcion Jakarta 3 Chevron indonesia 15 Januari January 2015 5 bulan months hydraulic Workover services kalimantan Timur east kalimantan 4 phe onWJ 15 Mei May 2015 12 bulan months hydraulic Workover services Jawa barat West Java 5 pertamina 15 Juni June 2015 26 bulan months hydraulic Workover services Jawa barat West Java business segment of integrated upstream oil and gas services overview Oilield Services This business segment is engaged in the maintenance of oil and gas wells and ields, operaion services and maintenance of producion and its supporing aciviies. The Company is also developing competence in enhancement oil recovery. The process of business aciviies of oil and gas producion are generally divided into: 1. Well Services; Maintenance services for wells that have been operaing, which aim at monitoring the wells performance and increasing their producivity mainly of those with declining producivity. 2. Engineering, Procurement Construcion EPC dan Operaion Maintenance OM; • Oilield maintenance services that has been operated including OM of exising or new pipeline. • Engineering, Procurement, Construcion and Maintenance EPCM, construcing collecing base to opimalize the producion.

3. Production Enhancement; effort to increase

the recovery factor of oil production using high technology, which is called eor. business concept of the line can be seen from the approach consising of: Most project in this segment are medium and long term contracts whith the distribuion of project site on the island of sumatera, Java, kalimantan and papua. These are main contracts with signiicant value obtained by the Company during 2015: 98 analisis dan pembahasan Manajemen PT Elnusa Tbk Laporan Tahunan 2015 bisnis Hydraulic Workover Snubbing menjadi kontributor utama pendapatan sebesar 38,5 naik jika dibandingkan dengan tahun lalu yang hanya mencapai 29,8. Uilasi peralatan dapat diopimalkan dengan adanya pekerjaan tambahan, sehingga dapat mencapai target yang ditetapkan. perseroan secara jeli dapat melihat peluang pasar dan kinerja tender yang baik tanpa adanya kalah tender untuk kontrak-kontrak incumbent. selain itu perseroan juga membuat inovasi dan perbaikan secara koninu sehingga memudahkan pekerjaan. Secara proitabilitas bisnis ini juga dapat meningkatkan proitabilitasnya dengan margin laba bruto sebesar 41,8 dibandingkan 28,3 pada tahun lalu. Kontribusi Pendapatan per bisnis – Oilfield Services reVenue ConTribuTion per business – oiLFieLd serViCes 2015 rp846,8 miliar rp846.8 billion 2014 rp717,3 miliar rp717.3 billion 38 13 7 13 8 3 18 hydraulic Workover services snubbing services Well Tesing services Operaion Maintenance Cemening pumping services slickline services Coiled Tubing services 30 16 8 12 5 5 24 hydraulic Workover services snubbing services Well Tesing services Operaion Maintenance Cemening pumping services slickline services Coiled Tubing services bisnis Coil Tubing Services pada tahun 2015 mengalami penurunan pendapatan sehingga kontribusi pendapatan yang dihasilkan turun dari 24,3 pada tahun 2014 menjadi 17,8 pada tahun 2015. rata-rata pendapatan per bulan mengalami penurunan jika dibandingkan dengan tahun 2014 dikarenakan penurunan akivitas operasi karena pelemahan harga minyak dunia yang menyebabkan uilisasi alat mengalami penurunan. Dengan demikian proitabilitas bisnis ini untuk laba bruto juga menurun dari 26,6 pada tahun 2014 menjadi 5,7 pada tahun 2015. pada bisnis Well Tesing services, perseroan berhasil meningkatkan pendapatan sebesar 13,0 dari tahun 2014 dengan meningkatnya uilisasi peralatan surface tesing dari 27,0 pada tahun 2014 menjadi 71,0, sementara itu peralatan tesing barge mengalami penurunan uilisasi karena docking. Namun proitabilitas bisnis ini mengalami penurunan dari 34,8 menjadi 29,0 terkait kenaikan biaya operasional seperi sewa boat, upah tenaga kerja dan biaya perawatan alat. pada bisnis Slickline, perseroan berhasil meningkatkan pendapatan sebesar 8,4 dengan meningkatnya uilisasi peralatan dan bertambahnya volume akivitas pekerjaan dan kenaikan harga jasa. Namun secara proitabilitas masih relaif sama dengan tahun lalu, kenaikan biaya tenaga kerja langsung, perawatan alat dan overhead lainnya menggerus usaha yang telah dilakukan perseroan dalam upaya melakukan eisiensi biaya. Untuk menambah kapasitas dan meningkatkan spesiikasi peralatan sesuai dengan kebutuhan klien, perseroan telah menambah satu CTU yang telah bekerja secara opimal. hydraulic Workover snubbing business was the main contributor to revenue with share of 38.5, enlarging from that of the earlier year which only reached 29.8. Higher uilizaion with the addiional revenue from addiional work, as well as changes in daily rates lead this business unit to achieve the expected target. The Company could carefully see market opportuniies and good biddings without any terminaion of exising contracts or not being extended. The Company also made innovaion and coninuous improvement to facilitate the work. This business could also improve its proitability with gross proit margin amounted to 41.8 compared to 28.3 last year. Coil Tubing services business in 2015 recorded a decrease, so the contribuion to generated revenue fell from 24.3 in 2014 to just 17.8 in 2015. The average monthly income decreased compare to 2014 as the efect of slowing operaional aciviies due to low oil price which impacing to lower equipment uilizaion. Hence, gross proit of business proitability dropped to 5.7 in 2015 from 26.6 in 2014. In Well Tesing services business, the Company increase revenue by 13.0 from 2014, with the increased uilizaion of surface tesing equipment uilizaion from 27.0 in 2014 to 71.0, although tesing barge equipment decreased because of docking. However, proitability declined from 34.8 to 29.0 in line with operaional costs hike including boat rent, labor and maintenance costs. in slickline business, the Company managed to increase revenue by 8.4 and increase equipment uilizaion with rising volume of services and servicing rate hikes. however, proitability was sill relaively the same as that of 2014. The increase in the cost of direct labor, maintenance and other overhead eroded the proitability despite the eforts Company for cost eiciency. To increase the capacity and improve the speciicaion of the equipment according to client needs, the Company added one CTU that had worked opimally. In addiion, the 99 Management discussion and analysis 2015 annual report PT Elnusa Tbk Company made a purchase of EWL Ofshore and HWU to improve the compeiive posiion of the company. drilling services The Company provides services in the ield of Drilling services and drilling support services where the current focus was on-shore drilling in accordance with the owned competence and equipment. At the same ime, the Company was sill exploring and developing the potenial in ofshore drilling and geothermal drilling, given the magnitude of the potenial for growth in the sector. Meanwhile, on services supporing drilling, the Company has eWL, MLu, CMT, h2s and others. Below is the explanaion of each business unit of drilling services:

1. integrated Drilling management: The management