BP Migas and Gapenri sign agreement on EPC

Oil and gas upstream authority BP Migas has agreed to promote the role of local engineering and construction companies in the development of the country?s oil and gas upstream sector, Bisnis Indonesia reported on Thursday.

BP Migas?s commitment to involving the local contractors in the oil and gas projects was contained in a cooperation agreement signed by the agency and the Association of Indonesian Engineering Firms (Gapenri) in Jakarta on Wednesday.

?We will give local consultants a wider opportunity to get involved in engineering, procurement and construction in the oil and gas sector,? said the deputy head of BP Migas, Kardaya Warnika.

According to Kardaya, the value of the oil and gas projects that could be handled by the local construction could reach US$6 billion.

He said that oil and gas companies would allocate at least $4 billion for oil and gas exploration activities and another $2 billion for production activities this year.

Meanwhile, the head of Gapenri, Pandri Prabono, said that local contractors had not yet been able to take the advantage of the country?s oil and gas projects due to the limited access given to them to take part in the tender for the projects.

He said that the value of the projects undertaken by the local contractors was only about US$600 million a year. (*)