#TITLE_ALTERNATIVE#

• Main Author: LUTFI PANHAR (NIM 12203014), MUHAMMAD
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/10985
• Institution: Institut Teknologi Bandung

DMO is Domestic Market Obligation. DMO is a compulsory for contactor to split its own share to be given to the government to fulfill the fuel needs in the country. By splitting apart from its own share, contractor will get the repayment from the government. This DMO system is concluded in the Production Sharing Contract (PSC) based on the Oil and Gas Law No. 22 2001.<p>The object of this study is to analyze the effect of changes/fexibility of DMO which bound to contractor and government. The effect of these changes will be analyzed in 3 different scenarios which may happen in the exploration and exploration of oil and gas projects. Scenario 1 is where the production profile shows that the production done with the highest production possible in the early years of the project. Scenario 2 shows that the production increasing gradually to its peak and thus decreasing again. As for scenario 3, it is a modification of scenario 2 where the production starts 1 year earlier and with quite low production.<p>The result from this study is that the changes in DMO can be done as long as it will not causing any loss to contactor or government. The changes done is affected by the production profile of the project. In making the changes, it's a must to give compensation for both sides to prevent loss. Compensation made in this study is compensation in the amount of fee DMO given. For contractor, deciding which project is best also depends on the IRR. <br />