Contractors in the oil and gas upstream sector say that the limited availability of drilling towers or rigs remains a challenge for the industry to this day.
Bayu Kusuma Tri Aryanto, Vice President for Supply Chain Management (SCM) Regional 2 at PT Pertamina EP, highlighted that rigs are being withdrawn from Indonesia.
However, Bayu said, Indonesia’s upstream oil and gas market remains attractive enough to retain rigs within the country.
“Upstream Oil and Gas Regulatory Task Force (SKK Migas) has challenged us on how to retain rigs that are already in Indonesia,” Bayu told the IOG SCM Summit 2024 press conference on Monday, May 6, 2024.
Facing this challenge, SKK Migas and contractors plan to collaborate to maintain the rig resources through joint contracts (farm-ins). One of the strategies is to host the Indonesia Upstream Oil & Gas SCM Summit 2024, which includes discussion forums on rigs.
Bayu cited that the event addresses solutions, technological breakthroughs, and effective strategies to expedite the digitalization of the supply chain and resolve complex issues in upstream oil and gas activities and operations.
“Through these forums, we can collectively assess the situation with SKK Migas, contractors, and rig suppliers. There will also be joint farm-in memorandums, not only for rigs but also for drilling and other production facilities that can be optimized,” he said.
On the other hand, Rudi Satwiko, Deputy for Business Support at SKK Migas, emphasized the strategic role of SCM in strengthening the national upstream oil and gas industry. He hoped that the IOG SCM Summit 2024 would enhance effectiveness, efficiency, and add value to the entire upstream oil and gas industry.
“Effective supply chain management is one way to support operational activities so that they can proceed as planned and achieve targeted results. Proper supply chain management can accelerate the increase in oil and gas production and reduce cost recovery,” Rudi said.
In managing procurement for contractors, SKK Migas encourages more involvement of domestic industries and labor to support upstream oil and gas operations. This year, the Indonesia Upstream Oil & Gas SCM Summit 2024 adopts the theme ‘Navigating Long-term Plans Through Integrated & Collaborative Supply Chains’.
The series of activities will begin with pre-events in Surabaya on June 10-11, 2024, and Batam on July 3-4, 2024. The main event will be held at the Jakarta Convention Center on August 14-16, 2024. More than 7,500 participants from various sectors are expected to attend the conference, including SKK Migas, contractors, government officials, suppliers, students, and other SCM professionals.
