Drilling costs surge by up to 15 percent

The association of Indonesian drilling companies for oil, gas and geothermal APMI has said that the increase in the fuel prices had caused an increase in the drilling cost by between 12 percent to 15 percent, Investor Daily reported on Wednesday.

The association?s chairman Bambang Purwodadi said in Jakarta on Tuesday that the association?s 11 members had asked for a review in their contract because the surge in the fuel spending had severely affected their margin.

He said that the 11 members including PT Tridiantara, PT Alfindo, PT Gasuma, PT Bormindo Nusantara, PT Sani Utama, PT Arindo and PT Surya Bandar Kencana were all hired by Chevron Pacific Indonesia (CPI) to carry out drilling activities in its oil concession in Riau.

?The 11 companies had a problem because in their contracts they had to bear all the fuel spending. Other companies are allowed to ask for the refund because the fuel spending is part of cost recovery,? he said. (*)