BPMigas, the country's upstream oil and gas regulator, says it is working on ways to boost the role of local supporting companies -- both in the form of service and non-service orders -- in oil and gas projects.

One way to increase supporting company participation is to provide more access to information on newly approved oil and gas projects so that local firms can offer services necessary to such projects, said Gerhard Rumeser, BPMIgas procurement and asset management division head, over the weekend.

Such information has thus far been available, but only upon request from interested parties.

"In the future, we will be more aggressive in disseminating information. We will actively announce any approved projects and this information can be viewed openly by everybody," Gerhard said in a seminar about the role of supporting industries in the oil and gas sector.

The agency data reveal an encouraging trend.

In 2007, commitments or orders for domestic goods and services procurement to support oil and gas fields amounted to US$2.3 billion, or 53.4 percent of the total $4.3 billion in orders.

The biggest portion came from drilling contracts and supporting services.

Gerhard expects that contribution to significantly increase with the new effort.

BPMIgas is hopeful that by the end of 2010 at least 55 percent of its total expenditures in the upstream oil and gas sector will go to domestic resources. This is expected to increase to 91 percent by 2025.

In 2006, the utilization of domestic resources in the upstream oil and gas sector reached $1.3 billion.

Gerhard said BPMigas would provide more detailed information in the project announcement.

"Currently, the development plans (for projects) only give very general information. We plan to make it more detailed."

"For example, the announcement will provide the required facilities and services for every stage of the project's development. Thus, local businessmen will be able to identify their opportunities based on that information," Gerhard added.

Evita H. Legowo, director general for oil and gas at the Energy and Mineral Resources Ministry, said the government had issued regulations allowing national oil and gas companies to exploit old wells.

"We expect domestic companies will learn from this opportunity," she said.

The government is still in discussions on how to transfer operation of the wells from their original operators -- usually big industry players -- to the domestic oil and gas companies, Evita added.

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