Pertamina targets $100m efficiency in crude and fuel procurement

State owned oil and gas firm PT Pertamina (Persero) target cost cutting amounting to US$100 million this year as a result of efficiency program implemented in procurement of crude and oil fuels by its purchasing arm, Integrated Supply Chain (ISC).

?Last year, system management implemented by ISC managed to book cost efficiency worth $208.1 million, well higher than the target of $91.7 million in crude and fuel procurement. This year, the system management will continue. Our efficiency target from crude and fuel procurement is $100 million,? Pertamina?s Corporate Secretary Wianda Pusponegoro.

In order to achieve the cost efficiency target, Pertamina plans several strategic initiatives, including maximizing the purchasing of domestically-produced crude, efficiency in procurement of crude, oil fuels and LPG, processing of crude outside of the country, purchasing crude, condensate, oil fuels and LPG from various countries on G-to-G basis.

In 2016, gasoline demand is estimated at 164.6 million barrels, while gasoil at 171.1 million barrels, LPG at 7.45 million tons.

Editing by Johannes Simbolon