BPMIGAS to terminate contracts of uncommitted PSCs

By Godang Sitompul

Upstream Authority BPMIGAS has threatened to terminate the contract of 89 oil and gas block production sharing contractors (PSCs) which shown no certainty of commitment for exploration this year.

In fact, BPMIGAS' deputy for planning, Haposan Napitupulu said that the contracts of 15 blocks are currently in the process for termination this year.

?Of the 141 exploration working areas, which are more than 3 years, 39 blocks have shown commitment certainty, and 89 blocks have yet to fulfill certainty of commitment, and the remainder 15 blocks are in the process of termination,? Haposan told Petromindo.com Friday.

But Haposan did not disclose the names of the PSCs which have shown no certainty of commitment for exploration.

?We?re pushing them to do it, if not we?ll also send warning via deficiency notice. If they continue to disregard the warning, of course their working areas will be proposed for termination,? he said.

Editing by Reiner Simanjuntak