SKK Migas: FPSO must be built in Indonesia

Upstream authority SKK Migas will issue a new policy requring Floating Production Storage and Offloading (FPSO) vessels to be made in Indonesia.

The firm said in a statement on Wednesday that the new policy aims to support the growth of maritime industry in Indonesia. The growth of Indonesia?s maritime industry will be supportive to the operation and performance of upstream sector and in turn will have positive impact on the government?s revenue from oil and gas sector.

All FPSO vessels which were initially planned to be built or converted in foreign shipyards should now be built, converted and serviced at local shipyards.

?We will soon draft and issue the new policy,? SKK Migas? Head Amien Sunaryadi said during a seminar on Wednesday.

He called on the local shipbuilders to improve the capacity of their infrastructures and human resources so that the products they deliver to the oil and gas upstream sector are well guaranteed in terms of quality, availability and reliability.

At present, there are 620 vessels operated in the country?s upstream sector on long term projects and 80 vessels on short term projects. Of the existing 24 FSO and FPSO vessels, seven belong to the state, managed by SKK Migas. The management and operation of the FPSO costs US$820 million.

Editing by Johannes Simbolon