SKK Migas to allow contractors to revise work, budget plan

Upstream authority SKK Migas will allow oil and gas contractors in the country to revise their 2015 work and budget plans, which had been approved in November of last year, to anticipate the drop in oil price, Kontan reported on Thursday.

The paper quoted SKK Migas spokesman Zuldadi Rafdi as saying that any revision made by the contractors will be approved in May.

He, however, said that despite the opportunity to make the revision, the contractors were expected to remain committed to the initial plan particularly with regards to drilling programs as the country wants to increase oil and gas production.

Zuldadi claimed that although oil price has dropped to around US$50 per barrel from $110 per barrel, there has been no complaint made by the oil and gas contractors operating in the country, meaning that current price level could still cover production cost.

There are a total of 72 oil and gas contractors which have been in production stage, and 228 still at the exploration stage. ?They have yet to make any complaints,? he said. (*)