Pertamina claims $60m saved annually in efficiency program<\/p>\n
JAKARTA (JP): State oil and gas company Pertamina has
\nestimated that it could save more than US$60 million in costs
\nevery year through its efficiency programs.<\/p>\n
The data, which was made available to The Jakarta Post on
\nThursday, says the sharp cost reductions would be possible due to
\nfactors such as the recent closure of the company's marketing
\noffices abroad and the recent termination of the brokerage
\nservices for its fuel and crude oil imports.<\/p>\n
The implementation of the efficiency programs at its refinery
\nin Balikpapan, East Kalimantan, and its oil fields in Prabumulih,
\nSouth Sumatra, are also contributing to the savings, the data
\nsays.<\/p>\n
Pertamina closed its marketing offices in Houston, London and
\nSingapore and reduced the number of its marketing staff in Tokyo
\nseveral months ago. This will save Pertamina US$7.8 million per
\nyear.<\/p>\n
Pertamina started to directly import fuel and crude oil in
\nJuly after unilaterally terminating its decade-long brokerage
\ncontracts with Perta Oil Marketing Ltd. and Permindo Trading Co.
\nLtd, controlled by former president Soeharto's family and
\ncronies.<\/p>\n
The company will save $29.45 million per year as a result of
\nthe action.<\/p>\n
It has already saved $26 million annually as a result of the
\nimplementation of efficiency programs at the Balikpapan refinery,
\nand another $10.8 million per year due to the efficiency program
\nat the Prabumulih oil field.<\/p>\n
The Prabumulih oil field and Balikpapan refinery are among the
\nthree business units which Pertamina is using as pilot projects
\nfor its five-year restructuring program which started in 1996.<\/p>\n
Cost<\/p>\n
The data says Pertamina's crude oil production costs are
\nlikely to fall to $3.34 per barrel in the current fiscal year
\nfrom $5.05 per barrel in the previous fiscal year, as a result of
\nthe company's restructuring programs.<\/p>\n
According to the data, Pertamina had the fifth lowest oil
\nproduction costs among the country's oil companies in the
\nprevious fiscal year.<\/p>\n
The four companies with lower costs per barrel were PT
\nTalisman, which mainly operates in Ogan Komering in South Sumatra
\n($2.24); PT Mobil Oil EP, whose main interests are in Aceh,
\n($2.95); PT Conoco, with major operations in the Natuna Sea
\n($3.73); and PT Caltex Pacific Indonesia, which has operations
\nacross the country ($4.48).<\/p>\n
Pertamina estimates its cost of natural gas production are
\nalso likely to drop, to 32 cents per thousand cubic feet this
\nfiscal year from 37 cents in the previous fiscal year, due to
\nsuccessful restructuring programs. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pertamina-claims-60m-saved-annually-in-efficiency-program-1447893297",
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