Oil and gas producers can save up to $130 million

Saving from procurement of goods and services for oil and gas exploration and production activities reached US$130 million or about Rp 1.2 trillion as of November, 2011, oil and gas regulator for exploration and production BPMIGAS said.

The agency?s deputy chairman for upstream operation, Widjonarko said in Jakarta on Monday that production sharing contractors (PSCs) saved about $92.8 million from procurement of goods and service, and $37.2 million from the optimalization of asset use.

The savings recorded until November surpassed the initial target of $80 million from procurement and $25 million from the optimalization of asset use.

?The procurement of rigs contributed a larger part of the savings,? he said, adding that the actual saving would be announced during the meeting of the consultation forum for procurement of goods and services in January, next year.

Widjonarko said in 2012 the agency expected savings from procurement could reach $100 million and $30 million from optimalization of asset use. (godang)