Foreign flagged ships still allowed in oil, gas exploration

Oil and gas companies are still allowed to use foreign flagged vessels for seismic survey and drilling activities, Detik.com reported on Tuesday.

Oil and gas regulatory body BPMIGAS?s spokesman Sulistya Hastuti said in Jakarta on Monday that Minister of Transportation Freddy Numberi had agreed to exempt vessels used for seismic survey and drilling activities in offshore oil and gas fields from the cabotage principle.

"Freddy understands the situation. He agreed to provide an exemption, and if possible he will propose for the issuance of a Presidential decree for the purpose,? he added.

Sulistya said that the exemption was given because ships used in seismic survey and drilling could not be found in Indonesia and should be rented for a short duration from foreign operators.

Under the cabotage principle, which has been gradually implemented since 2005, the transportation of commodities within the country?s territory and the operation of floating offshore vessels such as those used for oil and gas activities should be carried out by Indonesia-flagged ships. The cabotage principle will be fully implemented in the end of 2010. (*)