PSC contractors owe $300m in unpaid fees to drilling firms

By Bernard Loebs

Hundreds of local drilling companies have gone bankrupt over the past two years amid the oil price crash as PSC contractors withheld the payment of their fees, according to an association leader.

Wargono Soenarko, Chairman of the Association of Indonesian Oil, Gas and Geothermal Drilling Companies (APMI) said PSC contractors owe a total of US$300 million in unpaid fees to the association members over the past two years. Because of this, hundreds of drilling companies have gone bankrupt.

?Before, there were 480 active members of APMI. At present, there are only 220 of them,? Wargono said

Wargono refused to unveil the identities of the PSC contractors who withheld the fee payment on fear that the PSC contractors would not give jobs to the association?s members in the future.

?We have reported the matter to SKK MIgas, because the PSC contractors are afraid of nobody but SKK Migas,? he said.

Besides, Wargono said, the association has set up a legal aid with the task focused on helping its members to obtain the unpaid fees.

Editing by Johannes Simbolon