Pertamina claims $60m saved annually in efficiency program
Pertamina claims $60m saved annually in efficiency program
JAKARTA (JP): State oil and gas company Pertamina has
estimated that it could save more than US$60 million in costs
every year through its efficiency programs.
The data, which was made available to The Jakarta Post on
Thursday, says the sharp cost reductions would be possible due to
factors such as the recent closure of the company's marketing
offices abroad and the recent termination of the brokerage
services for its fuel and crude oil imports.
The implementation of the efficiency programs at its refinery
in Balikpapan, East Kalimantan, and its oil fields in Prabumulih,
South Sumatra, are also contributing to the savings, the data
says.
Pertamina closed its marketing offices in Houston, London and
Singapore and reduced the number of its marketing staff in Tokyo
several months ago. This will save Pertamina US$7.8 million per
year.
Pertamina started to directly import fuel and crude oil in
July after unilaterally terminating its decade-long brokerage
contracts with Perta Oil Marketing Ltd. and Permindo Trading Co.
Ltd, controlled by former president Soeharto's family and
cronies.
The company will save $29.45 million per year as a result of
the action.
It has already saved $26 million annually as a result of the
implementation of efficiency programs at the Balikpapan refinery,
and another $10.8 million per year due to the efficiency program
at the Prabumulih oil field.
The Prabumulih oil field and Balikpapan refinery are among the
three business units which Pertamina is using as pilot projects
for its five-year restructuring program which started in 1996.
Cost
The data says Pertamina's crude oil production costs are
likely to fall to $3.34 per barrel in the current fiscal year
from $5.05 per barrel in the previous fiscal year, as a result of
the company's restructuring programs.
According to the data, Pertamina had the fifth lowest oil
production costs among the country's oil companies in the
previous fiscal year.
The four companies with lower costs per barrel were PT
Talisman, which mainly operates in Ogan Komering in South Sumatra
($2.24); PT Mobil Oil EP, whose main interests are in Aceh,
($2.95); PT Conoco, with major operations in the Natuna Sea
($3.73); and PT Caltex Pacific Indonesia, which has operations
across the country ($4.48).
Pertamina estimates its cost of natural gas production are
also likely to drop, to 32 cents per thousand cubic feet this
fiscal year from 37 cents in the previous fiscal year, due to
successful restructuring programs. (jsk)