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AKARTA: Publicly listed oil and gas services provider PT Elnusa Tbk will save up to US$6.7 million over the next five years, as a result of a refinancing program which will reduce interest costs from 6.7 percent to 4.9 percent per year.

“The decline was a result from a corporate action, including [a buy back] on fixed rate notes, which had interest rates of 9 percent,” the company said in a written statement on Thursday.

The company recently performed a buy back on its fixed rate notes (FTN) issued in early 2011. Elnusa spent $50 million, or about a half of syndicated loans worth $113 million from Bank Central Asia, Indonesia Exim Bank, Chinatrust Bank, Mizuho Bank and Bank of China, to finance the buyback.

Elnusa corporate secretary Heru Samodra said that refinancing was part of the company’s strategic measures to improve its performance.

“In line with the development and prospects in related industries, the company will focus on the development of oilfield services, which offers significant income potential. The company will also perform cost efficiency measures, including optimizing the company’s cost of financing,” Heru said in the statement.