Upstream Oil and Gas Procurement in 2021 Hits US$6 Billion

The Upstream Oil and Gas Regulatory Special Task Force for (SKK Migas) and oil and gas contractors (KKKS) have determined that this year’s goods and service procurement would reach 1,482 packages worth US$6.05 billion. The task force wanted an early listing process to ensure that the 2021 work program could start on time.

After issuing the 2021 procurement list in early January 2021, SKK Migas, in collaboration with the Indonesia Petroleum Association (IPA), sped up the tender process completion by improving the synergy and collaboration with all related stakeholders. "To support the field production and operation sustainability, we're looking for various breakthroughs to increase the efficiency of operating costs of the four primary commodities of the upstream oil and gas," the task force’s head of the Procurement Management Division, Migas Erwin Suryadi, revealed in a written statement.

The IPA chairman of the Supply Chain Management (SCM) committee, Fery Sarjana, mentioned that oil and gas contractors are committed to providing full support to SKK Migas to meet the 2021 lifting target. Realized targets will have a positive impact on their business continuity. "The SCM IPA Committee will support any attempt to speed up the tender process completion, improve synergies, and collaborate with all related stakeholders," he assured.