Govt has yet to terminate 18 contracts

By Godang Sitompul

Upstream authority SKK Migas has yet to realize its threat of terminating the production sharing contract (PSC) held by 18 contractors who have failed to realize their exploration commitment.

Since the beginning of the year, the agency has often said the 18 contracts would be terminated. Ausie Gautama, Planning Deputy at SKK Migas, however said on Monday that none of the contracts has been terminated.

?The right to determine the fate of the contracts lies with the Ministry of Energy and Mineral Resources,? Ausie said.

According to sources, some of the 18 contractors have yet to pay signature bonus and realize their exploration commitment. Some others have paid their signature bonus but have yet to realize their exploration commitment.

Editing by Johannes Simbolon