SKK Migas Terminates Contracts with 13 Companies
29 July 2015 15:50 WIB
TEMPO.CO, Jakarta - The Upstream Oil and gas Regulatory Task Force (SKK Migas) has terminated contracts with 13 oil and gas companies for working beyond their contract time, the task force said Wednesday, July 29, 2015.
Previously, SKK Migas has summoned these companies twice, but there was no respond. "Termination has been done. We now only have to collect their debts from the state," said SKK Migas spokesman Elan Biantoro on Wednesday.
The threat to terminate was previously issued twice to 15 companies. However, two companies responded by reporting to SKK Migas and their contracts were not terminated.
The companies made commitments to survey and exploration activities. The time limit for survey is eight years, while exploration is six years and can be extended by four years. The companies that had their contracts terminated did not conduct any activities.
Those companies consist of local companies and foreign companies from Canada and Mauritania, among others. Elan said there is one American company that has filed for bankruptcy. The FBI is currently investigating the company to help collect debts.
Elan said the debts are cost that should have been paid if the companies carried out their activities which are around US$1 million - US$20 million.
"I haven't calculated the total cost because their activities vary per region," said Elan.
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