BP Migas appeals oil and gas firms to use local equipment

The government regulator on oil and gas exploration and production BP Migas's recent appeal to oil and gas producers to use locally made components in their exploration and production activities have received a wide support from the local pipeline industry, Republika reported on Tuesday.

Top official of the association of pipe producers (APROPIPE), Williem Siahaya, hailed BP Migas's call saying that the move would be quite needed to support the operation of the local producers of steel pipes and other related equipment.

"We really appreciate the decision. It has been waited for a long time," he was quoted as saying.

In a recent circular on the guideline on the procurement of goods and services, BP Migas has called on oil and gas producers to use locally made equipment for their exploration activities.

In the guideline, BP Migas explicitly bans oil and gas producers to import finished products, except if they have not been manufactured in Indonesia, or if the local products do no meet the quality standard. (*)