Oil executive voices concerns over import duty

An oil executive voiced on Tuesday concerns over the customs and excise?s move to hold the rigs leased by some of the country?s oil and gas companies, saying the companies had been forced to postpone their exploration and development programs as a result.

Supramu Santosa, an executive at the Indonesian Petroleum Association (IPA) said the customs and excise office had demanded to the firms to pay a 27.5 percent import duty in order to get clearance for the rigs.

?We can't accept it because under production sharing contracts (PSC), capital goods such as rigs are exempted from import duty,? Supramu said.

He said the customs and excise office now held several rigs leased by Total, Anadarko, Talisman, Marathon and ExxonMobil.

?Total for instance has to pay US$27.5 million in order to get clearance for its leased rig,? Supramu said.

Earlier this month, Deputy Chairman of oil and gas upstream authority BPMIGAS Abdul Muin voiced a similar concern, saying the oil and gas companies that were thus far unable to get clearance for their rigs had threatened to cancel all their projects in the country. (Alex)