PT KS Ready to Meet the Needs of Oil and Gas Pipes in 2019

INDUSTRY.co.id - Cilegon - President Director of PT Krakatau Steel Tbk, Mas Wigrantoro Roes Setiyadi said that Krakatau Steel is ready to meet the needs of oil and gas pipelines by 2019, especially if the factory of Hot Strip Mill (HSM) 2 is fully operational.

"We will cooperate with PT KHI Pipe Industries and PT Krakatau Posco to support the cooperation of supply of oil and gas steel pipes," said Mas Wigrantoro in Cilegon on Tuesday regarding the visit of the Special Unit for Upstream Oil and Gas Activities (SKK Migas) Lower Oil and Gas Regulatory Agency (BPH Migas) some time ago.

PT KHI Pipe Industries is a subsidiary of Krakatau Steel in 2017 capable of producing steel pipes for oil and gas needs of 34,654 tons with sales of 27,392 tons.

As for the purposes of project supervision, the government can appoint PT Krakatau Engineering which has competence in project management.

The key to the success of the use of domestic products is the quality and competitiveness, so that SKK Migas encourages domestic producers to continue to improve their capabilities and seek the effectiveness and efficiency of the production process so as to create overall effectiveness and efficiency in the upstream oil and gas industry.

Going forward will be the same collaboration as is done now for other commodities, such as with shipyards and supporting goods / services for construction projects.

Krakatau Steel also hopes that the role of the government can maintain the continuity of the domestic steel industry. One of them is by encouraging regulations to ensure the availability of natural gas and electricity at low prices, steel trade regulations that support the development of the domestic steel industry and the policy of increasing the use of domestic steel products for government projects.

Previously, SKK Migas and BPH Migas visited Krakatau Steel as a form of support for the use of steel pipe material for oil and gas needs.

SKK Migas during the visit was attended by Vice Chairman of SKK Migas Sukandar (formerly President Director of Krakatau Steel) while representing BPH Migas was present Head of BPH Migas M. Fanshurullah Asa.

In this visit discussed about the use of steel pipe material for the needs of oil and gas manufacturing facilities.

Refer to Code of Work 007 Book Second Revision 04 year 2017 issued by SKK Migas, where goods / services in the country listed in APDN Book set by Ministry of ESDM, List of Inventory of Goods / Services Domestic Production issued by the Ministry of Industry, and Approved Manufacturer List (AML) stipulated by SKK Migas, become an obligation to be used by KKKS (Contractor of Cooperation Contract), Contractor, or Subcontractor.

In this visit, SKK Migas and BPH Migas encourage the cooperation of steel raw material supply supply from Krakatau Steel as a domestic steel producer to meet the needs of oil and gas manufacturing facilities.

Sukandar stated that SKK Migas will support all forms of activities related to increasing use of domestic products as well as things that can create efficiency in the procurement process.

"We hope that Krakatau Steel can better participate in government projects related to the procurement of oil and gas pipelines," he said.

It is also an effort to encourage domestic steel and plumbing industry in order to face global competition especially in free trade area.

Meanwhile, M. Fanshurullah Asa said that in the preparation of owned estimate of investment control of oil and gas pipeline construction, it will involve Krakatau Steel from design, procurement, to supervision. (Ant)