BPMIGAS, contractors sign commitment to use domestic vessels

Upstream oil and gas regulator BPMIGAS and a number of oil and gas production sharing contractors (PSCs) on Tuesday signed commitment to use Indonesian registered vessels to support the contractors? offshore upstream oil and gas operations.

The PSCs that signed the commitment are Santos of Australia, Pertamina Hulu Energi West Madura Offshore (PHE WMO), JOB Pertamina-Petrochina East Java, PHE Offshore North West Java, CNOOC SES Ltd, Star Energy, Sele Raya and Kangean Energi Indonesia.

The move was an effort to improve national vessels capacity and an effort to implement the cabotage policy, that mandates the use Indonesian flag vessels for transporting goods within Indonesian waters.

The signing was held in Surabaya on the sideline of Shipping and Transportation Convention 2011.

BPMIGAS was represented by the regulator?s Deputy Head for Operation Rudi Rubiandini. Executives from PSCs signing the commitment were Marjolijn Wajong (Santos), Imron Asjhari (PHE ONWJ), Bambang H Kardono (JOB PPEJ), I. Tenny Wibowo (PHE ONWJ), Perkasa Sinagabariang (CNOOC SES), Wahyu Wicaksana (Star Energy), Jachiro Tampi (Sele Raya), Ahmad Bunyamin (Kangean Energi).

Last week, the government and parliament agreed to postpone implementation of the cabotage principle for oil and gas activities to 2015, citing huge investment requirements. The delay was decided amid limited or unavailability of Indonesian-flagged specific vessels used in upstream oil and gas sectors.

Under the ruling, all ships transporting goods and people must be at least 51% owned by locals from May 2011. The government has previously given an extension until the end of the year for vessels supporting oil and gas activities as lack of domestically-owned ships for such purposes.

(roffie/romel)