SKK Migas has never asked postponement of FIDs for mega projects
Wednesday, August 26 2015 - 03:40 PM WIB
Upstream authority SKK Migas insisted that it has never asked oil and gas contractors to postpone Final Investment Decisions (FID) for mega projects.
On Tuesday, quoting an official of the agency, this portal reported that the agency will ask the owners of three mega projects -- the Train 3 project of the Tangguh LNG plant in West Papua, the Indonesian Deepwater Development (IDD) project in Makassar Strait, East Kalimantan and the Abadi floating LNG plant project within Masela block in Maluku -- to postpone the FIDs for the projects. The measure was taken in response to the recent drop in oil price to below $40.
In a statement to clarify the report, Elan Biantoro, spokesperson of SKK Migas, denied that SKK Migas has ever made such a request.
?In light of the drop in oil prices, SKK Migas has only called PSC holders to carry out efficiency, reschedule capex works whose economies are affected by the low oil prices. The efficiency is implemented in the revision of the WP&B, which is normally carried out in July-August every year, but was made in April-May this year,? Elan said.
?The mega projects should continue as they will only come onstream in 2019-2020. Basically, there isn?t yet any impact of the current crude oil price on them,? he added.
Editing by Johannes Simbolon