Establish Cooperation, Genting Oil Will Use BP Berau Drilling Equipment

Illustration (Photo: Doc. Antara)

JAKARTA - Cooperation Contract Contractors (KKKS) BP Berau Ltd, KKKS Genting Oil Kasuri Pty Ltd and PT SPIJ collaborate with farm in.

Joint contracts through the farm in mechanism to meet the needs of Genting Oil drilling operations through the 'Provision of OCTG High Grade and Accessories with Ancillary Services' contract have a positive impact on upstream oil and gas operations, namely cost efficiency and certainty of equipment availability.

Dengan dilakukan farm in maka para pihak mendapat keuntungan yakni potensi penyemahan sebesar 15 persen sampai dengan 30 persen dari harga pasar, menminimalisir adanya kelebihan material melalui pemanfaatan kontrak konsinisi, potensi delivery time yang sesuai dengan jadwal pemboran, dan pencematan waktu dan biaya apabila dilakukan dengan pengadaan baru.

"I express my appreciation to all parties involved in the Supply Upstream Oil and Gas Chain Management who continue to pursue new strategies and initiatives in ensuring the availability of Goods/Services for operations while still paying attention to applicable regulations, maximizing potential efficiency and ensuring increased use of domestic capabilities," said Deputy for Business Support. Rudi Satwiko in a statement to the media, Friday, April 14.

Rudi added, through the signing of the farm in, it is hoped that it will motivate other KKKS to maximize the potential for the use of joint contracts so that efficiency can be created and there is certainty of the availability of main equipment/materials to support massive and aggressive upstream oil and gas activity programs.

"I encourage KKKS to immediately look back on the 2023 procurement list plan and coordinate with SKK Migas and other KKKS to see the potential strategic initiatives and breakthroughs such as Farm In to ensure the availability of equipment/material operations, in particular, the drilling program in 2023 and the following year in the long term plan for the upstream oil and gas target, namely 1 Million BOPD oil and 12 BSCFD Gas in 2030" added Rudi.

Head of the Program and Communication Division, Hudi D. Suryodipuro, added that the upstream oil and gas industry work program in 2023 was very massive and aggressive.

This is shown by the 2023 upstream oil and gas investment plan which reached 15.5 billion US dollars, an increase of 26 percent compared to the realization of upstream oil and gas investment in 2022.

"This high investment makes the upstream oil and gas industry very busy, for example in the development well drilling program in 2023 reaching 991 wells or an increase of 30 percent compared to the realization in 2022 which is 760 wells, so it requires a large number of rigs while the availability is limited," said Hudi.

He added that drilling activities in the world are also increasing so that existing rigs must be secured, because if you have moved abroad it will be more difficult to get them.

"So to secure the availability of rigs, a breakthrough through farming in cooperation is one solution," added Hudi.

Hudi emphasized that not only the availability of goods according to the time needed in farming in cooperation, but also the efficiency produced so that it will have a positive impact on efforts to optimize state revenues from the upstream oil and gas sector and increase the competitiveness of upstream national oil and gas in the global arena.