OPERATION STRATEGY OF NAGANAGA TO SUSTAIN ECONOMIC RETURN UNDER GROSS SPLIT PSC INCLUSION OF PI TO BUMD

• Main Author: Putro Wijayanto, Dwi
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/35766
• Institution: Institut Teknologi Bandung

The Naganaga Oil and Gas Working Area in East Kalimantan Province in 2018 was mandated by the Indonesian government to PT Minaga (MNG) with the Gross Split Production Sharing Contract scheme in accordance with MEMR Regulatory No. 8 of 2017 and changes to Gross Split Production Sharing Contracts. In addition, there is also an obligation for BUMD carry with 10% Participating Interest as regulated in MEMR Regulatory No. 37 of 2016 concerning Provisions for 10% Participating Interest in the Oil and Gas Working Areas. This study aims to evaluate the feasibility of Naganaga PSC from remaining reserves including PI 10% BUMD. Capital Budgeting Method with Discounted Cash Flow is used for evaluation, the results show a negative NPV value for MNG and sensitivity analysis is carried out on variable production, price and operating costs and capital costs. To provide economic value for MNG, several things need to be done, such as asking for additional splits of the contractor and efficiency of operating costs or capital costs.