SKK Migas, IPA Not Terminate Procurement Contract in Pursue of Lifting

By Editorial Team 20/10/2020
Summary

The procurement of goods and services in the upstream oil and gas sector will continue amid the COVID-19 pandemic. The Upstream Oil and Gas Special Regulatory Taskforce ( SKK Migas) and the Indonesia Petroleum Association (IPA) have agreed to maintain the investment climate by avoiding unilateral termination of existing procurement contracts. Head of the SKK Migas Goods/Services Procurement Management Division, Erwin Suryadi, said the current condition is not easy. However, upstream oil and gas activities must continue to run to support the national economy. SKK Migas hopes that the cooperation contract holders (KKKS) will look for a breakthrough if they encounter difficulties in the field. "We are not only encouraging active participation, we are also pro-active in finding solutions to the difficulties faced by KKKS in the field," he said in a written statement, Monday (10/19).

SKK Migas’ Operational Deputy Julius Wiratno said that his party continues to coordinate with the KKKS so that the work, program, and budget (WP&B) 2020 that has been agreed upon can run so that this year's oil and gas lifting target can be realized. "Do not let layoffs occur due to reduction of work programs or termination of contracts for the procurement of goods and services," he said. SKK Migas will help facilitate KKKS to carry out appropriate joint procurement and application of new technology. Another effort is to support approval acceleration, including approval for the procurement of goods and services by KKKS.

According to IPA’s Head of Supply Chain Management Committee, Fery Sarjana, oil and gas operators are very supportive of the acceleration steps taken by SKK Migas. IPA and SKK Migas also agreed to improve coordination and synergy, especially related to smooth operations and increasing investment in oil and gas. IPA also seeks to achieve the lifting target set by the government by implementing faster procurement of goods and services, especially for drilling towers.

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