Oil, gas industry will need additional 235 Indonesian-flagged vessels by 2015

Upstream Oil and Gas Regulator BPMIGAS estimates that the industry would need up to 235 units of new Indonesian-flagged vessels of various types and capacities by 2015, the year when a full implementation of the cabotage regulation kicks in.

The cabotage principle is derived from Law No.17/2008 on Shipping and Transportation Minister Regulation No.48/2011 which set the deadline for its full implementation at 2015.

BPMIGAS says the estimated number of additional vessels includes about 50 new units required in 2012. In addition to vessels, the upstream oil and gas industry would also need 18 units of helicopters and 6 units of aircraft.

?In line with the spirit of nationalism embraced by BPMIGAS to improve national capacity, we want a greater role of national shipping companies in supporting the industry,? said Deputy Chairman of BPMIGAS Hardiono when opening the 2011 National Convention on Transportation and Shipping in Upstream Oil and Gas Sector in Surabaya.

Together with PSC Holders, BPMIGAS currently manages 604 units of long-term operation vessels, 80 units of project vessels (short-term), 16 units of helicopters, 6 units of aircraft, in addition to 2,547 units of regular vehicles and 1,628 units of heavy equipment vehicles.

The use of all those transportation equipment costs the industry some US$980 million a year. The need for these kinds of transportation would also increase in line with the increase of Working Areas in the sector, for instance from 245 at the start of 2011 to 275 by the end of the year. (godang/edi)