Minister wants offshore vessels to be excluded from cabotage ruling

The Energy and Mineral Resources Ministry has asked the Transportation Ministry to exclude offshore vessels used to support oil and gas production activities from the cabotage principle which will be fully implemented in January, next year.

Director General for Maritime Affairs at the Transportation Ministry, Bobby R. Mahamit confirmed Monday that the Energy and Mineral Resources had formally requested for the exclusion of the offshore vessels used by oil and gas companies from the cabotage principle.

He said that the Energy and Mineral Resources Ministry asked the exception of three types of offshore vessels such as Floating Storage Offshore (FSO) and Floating Production Storage and Offloading (FPSO) and dredging vessels from the cabotage ruling.

Bobby said that the Transportation Ministry had yet to discuss the request.

Under the cabotage principle, which has 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 January, 2011. (*)