Industry saved $226m in procurement in 2012

The oil and gas upstream industry saved US$226 million in procurement of goods and services last year, mostly derived from the implementation of upstream authority?s provision on sharing certain facilities among contractors.

?It represented a 46 percent increase in money saved from 2011, which stood at $155 million,? said SKK Migas Rudi Rubiandini at the closing of Supply Chain Management forum in Bandung on Friday.

Of the total, $183 million of which came from the use of joint facilities. Inventory optimalization also contributed about $43 million.

Under the sharing facilities concept, a number of contractors make collective procurement of certain equipments in a certain period of time.

As an example is joint contract on the use of rig by Talisman, ConocoPhillips, ENI, Marathon, Statoil, and Anadarko for deepwater drilling, that resulted in $29.6 million in saved money.

Editing by Dadan Wijaksana