Logistics center in Sorong cuts oil, gas logistics cost

Petromindo

Upstream authority SKK Migas Chairman Amien Sunaryadi said that the presence of a giant bonded logistics center in Sorong, West Papua Province, developed by the Directorate General of Excise and Customs to serve the oil and gas industry, has significantly reduced the industry?s operating costs.

He said that this in turn has also reduced the expenses of the government in the reimbursement of the oil and gas industry expenses under the cost recovery mechanism.

Amien was quoted by Liputan6.com news portal as saying last week that one of the beneficiaries of the logistics center is BP Indonesia in the development of its Tangguh LNG Train 3 in West Papua. The company?s logistics in the past was centered in Lamongan, East Java, quite far from the project location in West Papua. With the presence of the Sorong bonded logistics center, BP has managed to significantly cut down its logistics and transportation costs for the Tangguh Train 3 project. (*)