Foreign flagged oil, gas vessels to be exempted from cabotage ruling

Friday, November 6 2009 - 01:58 AM WIB

The government should allow foreign flagged Floating Storage Offshore (FSO) and Floating Production Storage Offshore (FPSO) vessels of more than 20 years old continue their operation in the country despite the implementation of cabotage principle beginning January 2010.

The exemption is part of the agreements made during a meeting between senior officials of the Directorate General of Maritime Affairs, the Energy and Mineral Resources Ministry, upstream oil, gas regulator BPMIGAS and state owned oil and gas company PT Pertamina in Jakarta on Thursday.

During the meeting, they agreed that foreign-flagged ships used for drilling, seismic survey and construction activities should also be allowed to continue their operations in the country despite the enforcement of the cabotage principle. This is because most of vessels used for such purposes are rented from overseas operators due to the lack of such vessels domestically.

Ships which need a high technology such as a tanker ships for the shipment and storage of liquefied petroleum gas (LPG) to be operated to support the government-sponsored LPG-to-kerosene conversion program should also be excluded from the cabotage ruling.

All participants of the meeting will gather again to discuss the issues. (godang).

No Contractor(s) Number of Vessel Flag Status
Indonesia Foreign (before 2011) Foreign (2011) Note
1 PT PERTAMINA (PERSERO 149 115 34 0 ?
2 BP BERAU 19 15 4 0 ?
3 BP WEST JAVA LTD. 25 24 0 1 ?
4 CAMAR RESOURCES CANADA INC 3 3 0 0 ?
5 CHEVRON INDONESIA COMPANY 32 26 6 0 ?
6 CNOOC SOUTHEAST SUMATRA B.V 34 (24) 20 8 (4) 6 (1) 2 FPSO, 2 Ordinary vessel, only one left foreign
7 CONOCOPHILLIPS INDONESIA 14 11 (3) 1 (11) 2 (FSO) Reflagging 9
8 ENI BUKAT LTD 4 0 4 0 ?
9 EXXON MOBIL PASE 1 1 0 0 ?
10 HESS (IND. PANGKAH) LIMITED 3 1 2 0 ?
11 JOB PERTAMINA - PETROCHINA EAST JAVA LTD. 3 1 0 2 ?
12 JOB - PETROCHINA SARASWATI 3 2 0 1 ?
13 JOB PERTAMINA MEDCO E&P TOMORI SULAWESI 6 6 0 0 ?
14 KANGEAN ENERGY INDONESIA 4 1 3 0 ?
15 KODECO ENERGY INDONESIA 11 6 5 0 ?
16 KONDUR PETROLEUM 14 14 0 0 ?
17 PETROCHINA INTERNATIONAL (BERMUDA) LTD. 18 18 0 0 ?
18 PETROCHINA INTERNATIONAL JABUNG LTD. 13 10 2 (3) 2 FPSO, 1 1 (0) ?
19 PREMIER OIL NATUNA SEA LTD. 3 0 (1) 2 (1) 1 (1) No Document
20 PT CHEVRON PACIFIC INDONESIA 2 2 0 0 ?
21 PT MEDCO E&P INDONESIA 11 (8) 9 (8) 0 2 (0) ?
22 SANTOS (MADURA OFFSHORE) PTY LTD. 1 (2) 0 (1) 1 (1) 0 ?
23 SANTOS (SAMPANG) PTY LTD 7 (5) 4 (2) 0 (3) 3 (2) 1 FSO, 1 FPSO ?
24 STAR ENERGY (KAKAP) LTD 3 1 1 1 ?
25 TOTAL E&P INDONESIA 397 366 (382) 22 (12) 9 (3) ?

TOTAL

770 648 103 29 ?

Source: Ministry of Energy and Mineral Resources
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