ANALYSIS OF GROSS SPLIT PRODUCTION SHARING CONTRACTS : CASE STUDY OF OIL FIELD X

• Main Author: SYAHMI, ZAIM
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/24843
• Institution: Institut Teknologi Bandung

Oil and gas (Migas) is a public good that in Indonesia, including the natural resources belong to the people (common property rescources). To try, an enterprise needs to obtain concessions from the government. for work areas that have been explored and will be developed first, the contractor submitted a development plan for the first time. The development plan is then reviewed and submitted by the (SKK Migas) to the Minister of Energy and Mineral Resources of the Republic of Indonesia for approval. If approved, the plan becomes the Plan of Development I (POD I). <br /> <br /> <br /> <br /> <br /> <br /> <br /> Lately the Indonesian government proposes to no longer use cost recovery scheme that has been applied to the PSC scheme. The Indonesian government is proposing to use the Gross Split schemes with the aim of more efficient upstream oil and gas industry without any further reimbursement upstream oil and gas operating costs (cost recovery).This scheme is no longer include components of cost recovery. As a result, the Kontraktor Kontrak Kerja Sama (KKKS) will bear all costs of upstream oil and gas operations. Instead, the government only get a share of production. This method is claimed to be more effective and efficient because it does not need to keep an eye on the budget and the selection of cost recovery technology used. The Government fairly oversee production levels. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> In this research, the steps that need to be studied are evaluating the gross split scheme and comparing the calculations obtained with the PSC scheme. So we can know the cost benefit of each scheme. This thesis is research with marginal oil field study object located in South Sumatera area. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> The method used in this research is a grouping of variable choices that will be used so that it can be known limits that will be used. Next is calculated the economic indicators by comparing the 2 methods of PSC scheme with gross split method so that it can be done in-depth evaluation of which method is better. The gross split scheme uses a base split mechanism that is customized based on variable components and progressive components. The variable components in question are, among others, work area status, field location, reservoir depth, availability of supporting infrastructure and carbon dioxide content, while the progressive component is the price of petroleum and the cumulative amount of oil and gas production. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> The results of this research show that in calculating the marginal oil field economy, the gross split scheme is better than the PSC scheme when considering the selection of selected development scenarios does not focus on the Contractor. In scenario selection the scenario using the best gross split scheme is with dual zone production, adding 6 wells and reservoir stimulation is needed to increase production in this X field. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> From the research it is found that in the gross split scheme all costs are borne by the Contractor when compared to the PSC scheme which shows the beneficial results for the Contractor if the Contractor can save their expenses. In the gross split scheme shows that the costs can be controlled by the Contractor and the Government oversee the formation of a budget made by the Contractor. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> Interestingly from the gross split scheme not all suitable field use of this scheme in this study indicates that the gross split scheme requires considerable cost as the cost becomes the responsibility of the Contractor. The Government should review the Contractor to be interested in using the scheme.