Indonesia Cabotage Rule May Disrupt Offshore Oil Production
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Indonesia’s offshore oil and gas output may drop as production and shipment of the fuels using foreign-owned vessels will be banned under the cabotage rule starting May 7, the nation’s oil and gas regulator said.
Offshore oil output may drop by 156,020 barrels a day and gas output may fall by 2,549 million standard cubic feet a day, R. Priyono, chairman at the regulator, BPMigas, said during a parliament hearing in Jakarta today. Gas output at PT Total EP Indonesia, ConocoPhillips Indonesia and PT Energi Mega Persada may be affected, Priyono said.