Rig scarcity hits Indonesian E&P operators

Indonesian PSC operators are having difficulties to secure rigs, especially jack-ups, to meet their drilling commitments, due to rig scarcity, a BP Migas official said Thursday.

?The scarcity is caused by increasing oil prices, which gives incentive to E&P players worldwide to intensify drillings to speed up production of their existing reserves, and in search of new hydrocarbon reserves, said Zanial Ahmad, deputy chairman of Indonesian E&P regulator BP Migas.

Zanial said PSC operators such as ConocoPhillips, Kodeco, Petronas are scrambling to get jack-up rigs.

Zanial said rig scarcity also caused operators to delay commitment to drill 24 exploration wells throughout Indonesia this year. ?This year only 82 wells are scheduled to be drilled from original 106,? he said.

He said the majority of the wells would be drilled in the area that spanned from Southern part of Sumatra to East Java.(godang)