High-tech foreign vessels to be given special operating license: BPMIGAS

High-tech foreign vessels rented by oil and gas companies operating in Indonesian will be exempted from the Indonesian cabotage rule, according to Chairman of the upstream oil and gas regulatory BPMIGAS, R. Priyono.

But less sophisticated foreign vessels providing service to oil and gas firms in Indonesia are expected to be quickly transferred to Indonesian flag, he added.

?The Ministry of Transportation via the Directorate General of Sea Transportation will give special operating license to certain types of foreign vessels which are not available under Indonesian flag, or they are expected to quickly change ownership with Indonesian flag,? he said on Thursday during a session with the House of Representatives Commission VII on energy and mining sector.

Priyono did not elaborate.

The final phase of the implementation of the cabotage rule will come into force in January of 2001, requiring oil and gas companies to use domestically owned ships. This rule has created worries among oil and gas companies in Indonesia as some of the required vessels could not be provided by Indonesian flag ships. (godang)