PT Pertamina recorded efficiency gains from oil procurement of $91 million or Rp1.2 trillion in the first half of 2016. The achievement was obtained after the company diverted procurement to the Integrated Supply Chain (ISC) division from the previous through a subsidiary of Pertamina Energy Trading Limited (Petral).

Pertamina CEO Dwi Soetjipto say the decline in alpha component (distribution and margin cost) from the procurement process occur from time to time.  “It will later be stuck in a position where there will be no supply as we aim to build a refinery,” Dwi said in a press release on Thursday, Aug. 25.

Pertamina’s saving realization surpassed its $42 million target.  Last year, the efficiency obtained was higher with $208 million or Rp2.7 trillion.

Finance Director Arief Budiman say Petral has not been fully dismissed as its liquidation effort is incomplete.  Pertamina must still collect debts from Petral subsidiary, Pertamina Energy Service (PES), in Singapore.  For this matter, the company partners with Financial and Development Oversight Agency in the PES asset and receivable structuring.

Efficiency is also obtained from non-hydrocarbon procurement products of Rp2 trillion.  The 0.2 Oil Flow Governance (PTKAM) program is Rp 1.4 trillion.  Savings in the upstream sector is Rp7.8 trillion initiative of other directorates is Rp 1.28 trillion.

Pertamina also recorded savings from fuel consumption migration as well as optimizing the use of vessels with its numbers reaching Rp2.4 trillion.  “Next year, efficiency could be larger,” said Arief.

source: tempo.co