SKK Migas blacklists 10 PSC holders

By Godang Sitompul

Upstream authority SKK Migas has blacklisted 10 production sharing contract (PSC) holders on the grounds they had carried out ?almost zero? activities three years after they received their contracts.

The 10 contractors have mostly carried out only geological and geophysical studies on their concession. They thus risk having their contractors terminated by SKK Migas, according to SKK Migas? Field Evaluation Nugraheni.

?There are 10 PSCs with contracts have been running for three years which have been put on the blacklist. They have carried out only GG studies, thus almost zero activities,? Nugraheni said.

Normally, PSCs which fail to meet their contractual obligation will be terminated after six years of exploration period.

?Nonetheless, it is likely that the contracts will be terminated earlier than the 6-year period,? she said, without naming the 10 PSC holders

Editing by Johannes Simbolon