SKK Migas calls on drilling firms to slash fees

By Godang Sitompul

Upstream authority SKK Migas has issued a letter to the Association of Indonesian Oil and Gas Drilling (APMI), calling on its members to slash drilling fees amid the oil and gas market downturn.

SKK Migas does not want the high fees demanded by drilling companies to slow down drilling activities in the country.

?SKK Migas has issued a letter to encourage drilling service companies to reduce their fees. The fees imposed by the firms is too burdensome,? SKK Migas? spokesperson Elan Biantoro said, without providing details about the fees.

When asked for comments, an executive of a drilling service firm said drilling service firms are ready to renegotiate their fees. Fee renegotiation is a normal practice in business whenever market conditions sharply change. As such, SKK Migas does not need to issue such letter, he said.

Editing by Johannes Simbolon