ExxonMobil pays $20 m tax to get rig released

Indonesian unit of US super major Exxon Mobil Corp. is forced to pay US$20 million in withholding tax to get a drilling rig working on its deepwater exploration out of Indonesian water, a senior official with upstream oil, gas authority BPMIGAS said on Tuesday.

BPMIGAS Deputy Chairman Wibowo Wirjawan told Petromindo.Com on Tuesday that the West Aquarius drillship owned by Seadrill will sail to the Philippines after the tax, which was previously not imposed in exploration drilling activities, was paid.

?ExxonMobil Oil Indonesia (EMOI) will file complain to Tax Court to get the money back,? Wirjawan said.

Wirjawan said apart from tax charge, EMOI has also paid standby charge of $800,000 per day for about one week to Seadrill.

The rig has completed drilling of Kris-1 well in Mandar block, Makassar Strait and should immediately leave for the Phillipines. Tax office, however, refused to release the rig, insisting that $20 million tax must be paid before the rig could be released.

Tax office in the past never imposed such tax to drilling contractor as according to PSC contract, taxes during exploration period would be borne by the government. (alex/bernard)