BPMIGAS to undergo major restructuring

Upstream oil, gas authority BPMIGAS will undergo major organization restructuring to improve performance in supervising upstream activities, outgoing Chairman Kardaya Warnika said.

?BPMIGAS has two goals: to improve cost recovery supervision and to increase oil and gas production. Therefore, the restructuring that we propose would be in line with the goals,? he said after a meeting to discuss the restructuring with Minister of Energy and Mineral Purnomo Yusgiantoro, Director General of Oil and Gas Luluk Sumiarso and upcoming BPMIGAS Chief R. Priyono.

Kardaya added that among the changes proposed included in the method of financial audit and cost recovery audit and to cut overlapping procedures to cut red-tape within the body.

Kardaya also said that under the proposed reorganization, special team would be formed with the task of supervising LNG plants like BP-operated Tangguh, which fall into upstream category.

Rumors had been rife that three of the four BPMIGAS deputies along with Vice Chairman Abdul Muin will be replaced once the restructuring will be completed.

Minister of Energy and Mineral Resources has the authority to appoint BPMIGAS Vice Chairman and Deputies. (godang/bernard)