Government To Improve Standards Of Oil And Gas Equipment

Nusa Dua, Bali, Sept 2 (Antara) - The standard of production equipment, especially those of oil and gas, will be improved by the government to prevent corrosion, Director General of Manufacturing Industry Basis, Ministry of Industry, Harjanto stated here on Tuesday. "We keep trying to improve the national standards for oil and gas production equipment, and it will be mandatory," Harjanto added. He pointed out that standardization was essential, as corrosion was a significant menace for oil and gas companies causing loss in business. According to a survey in the United States in 2002, oil and gas companies in the country had lost US$276 billion due to corrosion. Harjanto, however, could not provide the total loss to Indonesia due to corrosion. "Currently, no record is available to determine loss due to corrosion. The average loss for a country, however, could reach 2-5 percent of the gross domestic production," he estimated. Meanwhile, secretary of Special Unit for Upstream Oil and Gas, Gde Pradnyana, noted that the total loss to a company due to corrosion could exceed the cost for refinement. He maintained that the institution had anticipated corrosion and had used good quality equipment and applied a proper design, as most of the oil and gas refineries had been built during 1970-1980. "The standards must be improved at regular intervals. Moreover, most of the refineries had been built in 1970-1980. The standards defined during that period are different from the current standards," Pradnyana added.