APMI calls for upstream supporting services to be included in revision of oil, gas law
Thursday, October 6 2016 - 09:27 AM WIB
The Association of Indonesian Oil, Gas, and Geothermal Drilling Companies (APMI) has asked the government and the House of Representatives to include a clause on upstream oil and gas supporting services in the revision of the 2001 Oil and Gas Law.
?Our services as supporting upstream oil and gas industry has not been included in the (current 2001) oil and gas law. As such, we have been suffering for 16 years,? said Chairman of APMI, Wargono Soenarko on Thursday.
He said that the acknowledgment in the oil and gas law is important to strengthen the legal position of the APMI members particularly in case of dispute with oil and gas contractors. ?The clause is very crucial so that transaction disputes that have to go through the court can be settled fairly,? he said.
Wargono pointed out that oil and gas contractors to date owe a combined US$300 million of unpaid bills for services rendered by the APMI members. ?In fact, there are also oil and gas production sharing contractors which have already in production stage decline to pay. But when we go to the court, our position is weak because the upstream oil and gas supporting services have not been acknowledged in the oil and gas law,? he explained, adding that APMI has officially made the request with the House.
Editing by Reiner Simanjuntak