Local drilling firms complain over influx of Chinese rigs

Local drilling companies have complained over the influx of Chinese rigs in the Indonesian oil and gas exploration activities, saying that the presence of the Chinese rigs has begun to threaten their businesses, Kompas reported Friday.

The association of Indonesian drilling companies (APMI), Bambang Purwohadi said in Bali Thursday that the number of Chinese rigs had reached 26 units during the past five years, with contracts amounting to US$150 million.

He feared that the operation of the Chinese rigs had threatened the local rig operators' business because, with the special incentive given to them, the local rig providers faced difficulties to compete.

"For us, it is not a problem if the Chinese rigs are brought into Indonesia through a normal procedure, but most of them entered the country by taking the advantage of the special facility provided by the ministry of energy and mineral resources," he added.

According to him, the Chinese rigs which operate in Indonesia are owned by Great Wall Drilling, Sichuan Ptr, Huabei Oil Field, Daqing PAB, ChangQing and Zongyuan Sea. (*)