CLOSE OUT REPORTING PROCESS ACCELERATION MANAGEMENT OF NEAR-EXPIRING PSC COST RECOVERY CONCESSION

• Main Author: Sahat Yudianto Hutabarat, Teddy
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/47526
• Institution: Institut Teknologi Bandung

CPO Corp. is one of subsidiary of CVY Inc., the world’s leading integrated energy companies, which operates as Oil Company in Indonesia. CPO Corp. operates in Koran Block by implementing Product Sharing Contract with Cost Recovery mechanism. In 2nd August 2018, Ministry of Energy and Mineral Resources announce PT. Partemani (Persero) as the new operator for Koran Block. This announcement also ends CPO Corp. concession in Koran Block on 8 August 2021. To ensure a smooth hand-over process, CPO Corp. creates a new organization which will responsible for the transition from CPO Corp. to PT. Partemani (Persero), as the new operator and completing the company responsibility to Government of Indonesia, one of this responsibility is the Close Out Reporting Authorization For Expenditure (COR-AFE). After four (4) months the new organization took in place (from 1 April 2019), DnC COR-AFE submission did not showing positive result. By July 2019, the actual cumulative amount of COR-AFE submission was only 196 AFEs compare to the plan of 295 AFEs (actual only 66% from plan), and the cumulative value of COR AFE submission was only $MM 44.13 from the plan of $MM 61.18 (actual only 72% from plan). Meanwhile CPO Corp. management expect that COR-AFE submission complete at the end of 2020. CPO Corp. management realizes this issue will continue to grow if no immediate action taken due to less and less remaining time until the concession ends. Company established and assigned a team to solve the problem. Team performing a Focused Group Discussion (FGD) to discuss the problem root cause, possible solutions and through Analytic Hierarchy Process (AHP), decide the best solution to solve the problem. Through strong collaboration and teamwork among the team and its members, the DnC COR-AFE submission is significantly increase. The cumulative DnC COR-AFE submitted as per February 2020 was 1,923 AFE from the target of 2,142 AFE, this means the actual DnC COR-AFE submitted is increase from 66% to 90% from plan. The cumulative value of submitted DnC COR-AFE as per February 2020 was $MM 796.72, from the target of $MM 828.15, this means the value of DnC COR-AFE submitted is increase from 72% to 96% from plan.