INSA ready to provide vessels for offshore oil, gas operations

The association of national ship owners (INSA) has said that it will be ready to provide vessels needed to support offshore oil and gas operations when the cabotage principle has been fullly implemented in May 2011, Kontan reported Monday

The association?s chairman Johnson W. Sutjipto said in Jakarta last week that at present the association's members have not been able to provide type C vessels such as jack-up rigs, seismic 3D ships, drilling ships, mobil offshore drilling unit (MODU) and construction ships.

?But we are sure we will be able to provide such ships as soon as possible,? he said.

R. Priyono, the upstream oil and gas regulator BPMIGAS, said in Jakarta recently that the implementation of cabotage principl3e would be counterproductive for the oil and gas sector because local shipping companies would unlikely be able to provide replacements for all the ships, tankers or drilling ships currently provided by foreign shipping companies.

Under the 2008 Shipping Law, all commercial ships operating in Indonesia?s waters should carry national flags or owned by local shipping companies. The principle is known as cabotage principle.

The principle has been implemented in general shipping business including coal transportation since early this year, and is scheduled for full implementation in the oil and gas sector in May, next year.

Minister of Transportation Freddy Numberi also said that he doubt about INSA statement. ?I think, they (INSA) will not ready yet until May 2011,? he said. (*)