SKK Migas signs MoU with Solar Turbines

By Bernard Loebs

Petromindo|Khalsa

Upstream authority SKK Migas signed at the end of last month a MoU with Solar Turbines International Company for the provision of turbomachinery to support oil and gas upstream activities.

?The signing (of the MoU) is an initial step toward the development of strategic program,? said Deputy for Procurement Control at SKK Migas, Djoko Siswanto on Friday, adding that the MoU was signed by SKK Migas Chief Amien Sunaryadi and Vice President for Customer Service at Solar Turbines Juan Rojas, and Managing Director Asia Pacific at Solar Turbines Richard Mundy.

Aside from improving supply performance of turbomachinery for upstream oil and gas activities of oil and gas contractors in the country, the MoU forms part of initial step toward a strategic agreement that would not only include provision of turbomachinery but supply of spare parts, maintenance, domestic manufacturing of the equipment, inventory management, and training facility.

Turbomachinery is a vital component in upstream oil and gas production activities. Aside from observing quality of product, proper maintenance and supply of quality spare parts are also essential in helping to avoid production failure particularly unplanned shutdown. Procurement and maintenance costs are not cheap, estimated to reach around US$90 million per year.

Solar Turbines has supplied about 81 percent of the 464 turbomachinery units deployed by oil and gas contractors in the country. The huge business grabbed by Solar Turbines is one of the reasons why the government wants something in return from the vendor that would benefit the country.

Editing by Reiner Simanjuntak