BP Migas to cut insurance spending to Tugu Pratama

BP Migas, the government's agency in charge of oil and gas exploration and production, will reduce its insurance spending to Tugu Pratama Indonesia, which is controlled by state owned firm Pertamina, beginning 2005.

Tugu's marketing president Amir A Mochtar said that BP Migas spent about US$47 million in insurance premium last year.

"At present, about 48 percent of BP Migas's insurance spending was handled by Tugu Pratama. Beginning next year, we will only handle 45 percent of the spending," he added.

He said that at present Tugu Pratama also handled between 60 percent and 70 percent of Pertamina's insurance spending. (*)