Local contents in upstream sector reach 63 percent
Wednesday, December 26 2012 - 01:50 AM WIB
SK MIGAS, which replaces the defunct BPMIGAS, said the total contracts for the procurement of goods and services, rose from $11.81 billion in 2011. Last year, the local components accounted for 61 percent of the total.
SK MIGAS General Affairs Deputy Gerhard M. Rumeser said that the local components for the procurement of services alone reached $7.06 billion while those for the procurement of goods totaled $1.53 billion.
He said that the involvement of state companies in the procurement of goods and services also showed a significant increase, rising to $1.69 billion as of November from about $630 million in 2011.
In addition to the use of local components, oil and gas contractors were also required in 2009 to carry out transactions through national banks. As of November 2011, the transactions through local banks totaled $7.21 billion, far higher than $3.97 billion in 2009. The total transactions reached a total of $22.15 billion since 2009.
The contractors are also required to keep their abandonment and site restoration funds (ASR funds) in local banks. The ASR funds placed in the local banks reached $65 million as of November this year. The total funds kept by oil and gas contractors in the local banks reached $301 million.
SK MIGAS Public Relations, Security, and Formality Division Head Hadi Prasetyo said oil and gas contractors also managed to save about $123.97 million from the equipment sharing program in the first semester of 2012. The amount rose from $103.50 million reached in 2011.
?We are optimistic we can save more than our target of $125 million this year,? he added.
He said that the optimization on the use of assets reached $39.96 million as of November 2012, rising from $39.82 million in 2011.
Oil and gas contractors whose oil fields are closed to each other are encouraged to share transportation and other facilities in order to save costs. For examples, several contractors including ConocoPhillips, Premier Oil, and Star Energy, have significantly reduced operating costs by jointly leasing helicopters for their operations in Natuna, Riau islands.
Several contractors have also been able to reduce operating costs through optimizing of assets. For example, JOB Pertamina-Talisman Jambi Merang in South Sumatra also use the condensate receiving storage owned by Petrochina Jabung.
Editing by Benget Besalicto Tnb.