SKK Migas reminds CEOs of PSCs to observe RI?s interests

By Godang Sitompul

Chairman of SKK Migas Rudi Rubiandini warned CEOs of oil and gas production sharing contractors (PSCs) operating in the country to observe the Indonesian national interests in carrying out their jobs.

Helping to ensure the national interests such as meeting production target as the country struggles to reverse a declining trend in oil production, and implementing CSR programs would be among of the key considerations by SKK Migas in determining on whether to renew the CEOs tenure, he explained.

Rudi said that while the extension of the CEOs? tenure is the authority of the head office of the PSCs, the SKK Migas holds the power in renewing their work permit.

?There have been many CEOs whose tenure has not been extended, both by the SKK Migas or the head office (of the PSCs), so it?s a normal thing,? Rudi told Petromindo.com Friday.

?Many of the CEOs whose tenure was not renewed because (they) had not been sensitive enough in observing the Indonesian national interests such as CSR issues, seriousness in increasing production, meeting project deadline, helping to curb cost recovery etc,? he explained.

The comments were made following the recent decision by SKK Migas not to extend the work permit of ExxonMobil Indonesia President Director Richard Owen.

Editing by Reiner Simanjuntak