Drilling companies ask CPI to review contracts

Thirteen drilling companies have asked PT Caltex Pacific Indonesia (CPI) to raise their fee following the rise in fuel prices, according to the Association of Indonesian Oil and Gas Drilling Companies (APMI).

Eddyono Salatun, an APMI leader, was quoted by Bisnis Indonesia as saying that the 13 firms would stop their drilling activities at CPI?s oil fields, unless CPI was willing to review the current contracts with the firms in order to take into account the rise in fuel prices.

He said the rise in fuel prices as of July this year had dealt a blow to the drilling companies, which use fuel in their operation.

According to Eddyono, the request for the contract revision had been submitted to CPI and oil and gas upstream authority BP Migas. BP Migas had agreed on the request but CPI had yet to make a response.

CPI?s president W. Yudiana Ardiwinata said CPI was studying the request and had yet to discuss with BP Migas.

?Any revision of the contracts must be approved BP Migas,? he explained.

He admitted that the figures stated in the contract needed revision following the rise in fuel prices, but he asked the drilling companies to make any decision with regards their plan to stop drilling activities before CPI, the firms and BP Migas make some agreement regarding the issue. (*)