SKK Migas agrees Pertamina to supply BBM to CNOOC
Monday, March 11 2013 - 05:58 AM WIB
Upstream authority SKK Migas has agreed that state oil and gas company PT Pertamina will supply oil fuels (BBM) of the type of High Speed Diesel (HSD) to CNOOC SES Ltd at the value of US$81 million (about Rp 753 billion) during 2013.
The BBM supply is needed to produce oil and gas from the fields operated by CNOOC SES Ltd.
SKK Migas Chairman Rudi Rubiandini said that SKK Migas has taken the decision in order to support Pertamina as a state enterprise to expand its involvement in the upstream sector as BBM supplier. ?This is part of our commitment to grow our state enterprises,? he said as reported in its press statement on Monday.
?Our approval for Pertamina to sell the BBM to CNOOC has proven that we?re committed to supporting Pertamina to grow bigger as a state enterprise and fostering the development of our national industry as a whole, The target of realizing the local content from the supply of HSD for CNOOC has been set at 98.64 percent,? Rudi said.
According to him, besides supporting Pertamina to supply the BBM for the need of upstream sector, SKK Migas has also required all BBM suppliers to use the financial services of state banks or local administration owned banks. ?CNOOC SES Ltd also has to require the BBM suppliers to use financing services of state owned banks,? Rudi said, adding that SKK Migas will continue to support state enterprises like Pertamina, PT PAL, PT Adhi Karya, PT Pelayaran, PT Sucofindo, PT Surveyor, PT Rekayasa Industri, PT Telekomunikasi Tbk, PT Wijaya Karya Tbk, PT Elnusa, PT Rekayasa Industri, and PT Sucofindo in their involvement in the upstream oil and gas industry.
The total value of goods and services procurement by state enterprises in the upstream oil and gas industry since 2010 until January 2013 has reached about Rp 24 trillion or about US$2,54 billion. During that period, Pertamina has got the largest portion with a total value of US$1,2 billion.
"We hope that the role of state firms in the upstream sector can be more expanded. We don?t want the state firms being marginalized in the very profitable upstream oil and gas industry,? Rudi said.
Editing by Benget Besalicto Tnb