REACTIVATION ASSESSMENT OF TANGO BLOCK PROJECT PT. XYZ ENERGI
<p align="justify">Indonesian Oil and Gas industry sector had a downturn for over the past three years as the effect of decreasing world crude oil price in the international market. This condition affected the Indonesian crude oil price, exploration and production activity in oil and...
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id-itb.:216062017-12-20T09:55:18ZREACTIVATION ASSESSMENT OF TANGO BLOCK PROJECT PT. XYZ ENERGI YULIANTI PUTRI - Nim: 29115598, DEA Indonesia Theses INSTITUT TEKNOLOGI BANDUNG https://digilib.itb.ac.id/gdl/view/21606 <p align="justify">Indonesian Oil and Gas industry sector had a downturn for over the past three years as the effect of decreasing world crude oil price in the international market. This condition affected the Indonesian crude oil price, exploration and production activity in oil and Gas sector. Oil and Gas Company in Indonesia should restructure its company budget. Some projects should delay because not profitable with the oil crude price level at that time. <br /> <br /> <br /> One of the Oil and Gas Company in Indonesia who affected by this condition is PT XYZ Energi. On February 2015, PT XYZ Energi deactivated one of its blocks because of decreasing and unstable oil price. The production cost was too high, which then conclude that the project was not profitable. In the last Quarter of 2016 until the first quarter of 2017, the world crude oil price was slowly increasing and stabilized. This condition improves the business environment for oil and Gas Company including PT. XYZ Energi. With this condition and the extensive PSC for Tango Block until 2037, the company plan to reactivate the production in Tango Field. For this plan, the company has three alternatives of oil trucking scheme with different location, distance, and cost that consist of Alfa, Charlie, and Beta to reactivating the Tango Block. This research will provide feasibility analysis with forward-looking economy perspective using Free Cash Flow Projection with PSC Mechanism, Discounted Cash Flow Analysis using Net Present Value. This research is the end by analyzing the sensitivity of oil price, production volume, and operating expenditures. This Research will assess the reactivation plan of Tango Block whether it is feasible or not and recommend the best oil trucking way to reactivate this project in regards to the cheapest cost and the most prominent profit. <br /> <br /> <br /> The reactivation assessment concludes this project is feasible to reactivate because it has positive Net Present Value for all the oil trucking schemes. With the WACC at 8, 67% obtained the Net Present Value for Alfa amounted $ 21.603.548, 99, for Bravo amounted $ 20.735.683, 83 and for Charlie amounted $ 11.413.304, 07. Moreover, this proposal has the opportunity to recover its past cost because its nominal cash flow can recover part of the past cost of 2007 -2017. This project reactivation is best to perform using Alfa as oil trucking scheme because it has the most significant NPV and its nominal cash flow gives the most significant cash to recover the past investment. Sensitivity analysis concludes if oil production volume down to 20%, lower oil price down to 20% and OPEX up 20% will make the project get the lowest NPV but still feasible to reactivate. <p align="justify"> <br /> text |
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<p align="justify">Indonesian Oil and Gas industry sector had a downturn for over the past three years as the effect of decreasing world crude oil price in the international market. This condition affected the Indonesian crude oil price, exploration and production activity in oil and Gas sector. Oil and Gas Company in Indonesia should restructure its company budget. Some projects should delay because not profitable with the oil crude price level at that time. <br />
<br />
<br />
One of the Oil and Gas Company in Indonesia who affected by this condition is PT XYZ Energi. On February 2015, PT XYZ Energi deactivated one of its blocks because of decreasing and unstable oil price. The production cost was too high, which then conclude that the project was not profitable. In the last Quarter of 2016 until the first quarter of 2017, the world crude oil price was slowly increasing and stabilized. This condition improves the business environment for oil and Gas Company including PT. XYZ Energi. With this condition and the extensive PSC for Tango Block until 2037, the company plan to reactivate the production in Tango Field. For this plan, the company has three alternatives of oil trucking scheme with different location, distance, and cost that consist of Alfa, Charlie, and Beta to reactivating the Tango Block. This research will provide feasibility analysis with forward-looking economy perspective using Free Cash Flow Projection with PSC Mechanism, Discounted Cash Flow Analysis using Net Present Value. This research is the end by analyzing the sensitivity of oil price, production volume, and operating expenditures. This Research will assess the reactivation plan of Tango Block whether it is feasible or not and recommend the best oil trucking way to reactivate this project in regards to the cheapest cost and the most prominent profit. <br />
<br />
<br />
The reactivation assessment concludes this project is feasible to reactivate because it has positive Net Present Value for all the oil trucking schemes. With the WACC at 8, 67% obtained the Net Present Value for Alfa amounted $ 21.603.548, 99, for Bravo amounted $ 20.735.683, 83 and for Charlie amounted $ 11.413.304, 07. Moreover, this proposal has the opportunity to recover its past cost because its nominal cash flow can recover part of the past cost of 2007 -2017. This project reactivation is best to perform using Alfa as oil trucking scheme because it has the most significant NPV and its nominal cash flow gives the most significant cash to recover the past investment. Sensitivity analysis concludes if oil production volume down to 20%, lower oil price down to 20% and OPEX up 20% will make the project get the lowest NPV but still feasible to reactivate. <p align="justify"> <br />
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Theses |
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YULIANTI PUTRI - Nim: 29115598, DEA |
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YULIANTI PUTRI - Nim: 29115598, DEA REACTIVATION ASSESSMENT OF TANGO BLOCK PROJECT PT. XYZ ENERGI |
author_facet |
YULIANTI PUTRI - Nim: 29115598, DEA |
author_sort |
YULIANTI PUTRI - Nim: 29115598, DEA |
title |
REACTIVATION ASSESSMENT OF TANGO BLOCK PROJECT PT. XYZ ENERGI |
title_short |
REACTIVATION ASSESSMENT OF TANGO BLOCK PROJECT PT. XYZ ENERGI |
title_full |
REACTIVATION ASSESSMENT OF TANGO BLOCK PROJECT PT. XYZ ENERGI |
title_fullStr |
REACTIVATION ASSESSMENT OF TANGO BLOCK PROJECT PT. XYZ ENERGI |
title_full_unstemmed |
REACTIVATION ASSESSMENT OF TANGO BLOCK PROJECT PT. XYZ ENERGI |
title_sort |
reactivation assessment of tango block project pt. xyz energi |
url |
https://digilib.itb.ac.id/gdl/view/21606 |
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1821120511207276544 |