Oil, gas contractors fail to pay $336.1m financial obligations to state

The state is estimated to suffer potential financial losses of around US$336.1 million as oil and gas contractors failed to pay their financial obligations to the state for working areas whose contracts have been terminated.

This was said by Secretary General of the Ministry of Energy and Mineral Resources Teguh Pamudji on Monday. He said that the oil and gas contractors have filed for termination of their contracts either because they could not find oil, or the oil and gas findings are not commercially feasible to be developed. ?But many have not paid their financial obligations (to the state),? he said.

In a bid to help find oil and gas contractors with financial capacity, the government will involve independent consultants in selecting contractors for oil and gas assets, he said.

Editing by Reiner Simanjuntak