"Efficiency in the procurement of goods and service has been increasing every year."
Bandung (ANTARA News) - Efficiency conducted in the procurement of goods and services in upstream oil and gas area in 2012 successfully saved U$226 million or Rp2.2 trillion.

"The success to save US$226 million in the procurement of goods and services in the upstream oil and gas in 2012 was 46 percent higher than the targeted US$155 million," Head of the Upstream Oil and Gas Regulatory Special Task Forces (SKK-Migas) Rudi Rubiandini said here on Friday.

Speaking to a forum on the management of supply system, the SKK-Migas chief said that of the US$266 million, a total of US$183 or about Rp1.78 trillion was saved in conducting efficiency in realizing the contracts and utilizing of facilities.

The remaining US$43 million or Rp420 billion came from the efforts to optimize the inventory costs.

"Efficiency in the procurement of goods and service has been increasing every year," Rudi said.

He said that in 2010 entrenchment reached US$96.5 million which increased to US$155.4 million in the following year. In 2013, the SKK-Migas has set itself a target of saving up to US$200 million.

"This is proof of our commitment to becoming more and more efficient and effective," Rudi said.

He said that SKK-Migas has announced 2013 as the year of drilling and in this case the management of the supply system would automatically be badly needed.

This is for overcoming non-technical constraints so that the drilling activities could be optimized.

Rudi Rubiandini said earlier that Indonesia was entering the year of oil well drilling in 2013.

"We have begun the drilling era. Oil reserves could not be channeled to our tanks if the wells are not drilled," he said.

He said that the drilling of wells were begun in an effort to prepare oil stocks for five to 20 years ahead.

Rudi said that oil production assumption in the 2013 budget was set at 900 thousand barrels per day while the production capacity now was only 830 thousand barrels per day.

To increase production, Rudi said his office had prepared a work plan for 2013, consisting of 104 points of work programs.

"We have held a working meeting to set our work plan for 2013. We have set 104 points in our work programs that should be achieved," he added.

In the meantime, PT Chevron Pasific Indonesia (CPI) said last week it was awaiting a recommendation from the SKK-Migas to resume development of the Siak block in Riau.

"We have not received information from the upstream oil and gas authority as to who is to be the operator of the Siak Block after Nov. 2013," Tiva Permata, the communications manager of PT CPI said.

It was reported the contract of PT Chevron Pacific Indonesia (CPI), will be renewed after the expiration of its present contract in November.

"We did not know about such report. We are still waiting for a recommendation from SKK-Migas," Tiva Permata, the communications manager of PT CPI said.

PT CPI will continue efforts to develop multi-technology to maintain its production level, which has been on the decline from year to year including from the Siak Block, she said.

Development of the technology is to optimize production to offset the declining trend.

Multi-technology is a technology suitable for oil fields operated by the company in Indonesia and other countries, Tiva said.

Application of multi-technology is important to maintain oil and gas production level including in Riau oil fields, she added.
(Uu.A014/S012)

Editor: Priyambodo RH
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