Crude distribution system via pipeline may be revamped

By Godang Sitompul

Upstream authority BPMIGAS is concerned with the deadly fire incident on Wednesday at the Tampino-Plaju crude pipeline section in South Sumatra due to illegal tapping, proposing a revamp in the oil and gas pipeline distribution system contract.

BPMIGAS said that the revamp is needed to help prevent further losses due to illegal tapping of crude oil.

?We?re currently in discussion whether it is possible to revamp the contract of oil and gas distribution via pipeline. For instance, if 1,000 barrels are distributed via pipeline, then the owner of the pipeline hired by (oil and gas) production sharing contractors must be responsible in distributing it,? explained BPMIGAS spokesman Hadi Prasetyo to Petromindo.com Thursday.

?This (proposal) is still at the stage of discourse, and we?ll further evaluate it (before) being implemented,? he said, while adding that crude losses from illegal tapping can be prevented if there?s tight supervision or control of the pipeline facility.

Editing by Reiner Simanjuntak