CRISIS MANAGEMENT STRATEGY TO SUSTAIN UPSTREAM OIL AND GAS OPERATIONS DURING COVID-19 PANDEMIC

• Main Author: Reginald, Alvin
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/47569
• Institution: Institut Teknologi Bandung

PetroChina Indonesia began operating in Indonesia in 2002 as the first PetroChina’s first overseas investment. PetroChina has been the operator of Jabung Block following its acquisition from the block’s previous operator, Devon Energy in 2002. As the operator of Jabung Block, PetroChina works under the monitoring and supervision of the Indonesian government’s upstream oil regulator, SKK Migas (Special Task Force for Upstream Oil and Gas Business Activities). The COVID-19 became the company’s challenge to test the business resilience, particularly on its operations in Indonesia. The company must establish its mitigation plan to prevent and control the COVID-19 infection among its employees in its two operating locations in Indonesia, the Jabung Block in Jambi and Menara Kuningan Office Building in Jakarta. The development of mitigation plan should maintain the 100% production and operation. Furthermore, the plan should also be aligned with PetroChina Indonesia’s operation and production activities. The research project is done by using qualitative method and a combination of primary and secondary data, such as interventions provided by other countries that already established the COVID-19 prevention and treatment measure, and the focused group discussion within PetroChina Indonesia. The project is analyzing the COVID-19 situation in PetroChina using the PESTEL Analysis that integrated with learnings from other countries and the Value Chain Analysis by integrating of internal business process through mapping of Business Continuity Plan with WHO Pandemic Phase. The result of the analysis will be discussed during Crisis Management Team focus group discussion for securing approval for further implementation. The COVID-19 outbreak prevention measures in the PetroChina’s facilities are began by an early preparation of the prevention of control actions. The Jakarta Office has ruled the work from home policy to reduce the risk of potential outbreak, except for jobs that still require a paperwork access and operational activities in the office. To overcome this problem, the company require employees that still need to go to the office to request an approval prior to work and the obligation to wear mask at the office. The Jabung Field established prevention measures by rotating employees every 28 days. The measure includes the optimization of essential employees such as assigning very urgent employees at Jabung Field, postpone all non-operations project is critical, while minimizing the non-essential daily commuting employees is a must and finally reducing the number of employees working at Jabung Field. The off-duty employees are required to report the self-surveillance, daily. Employees that commute and reside in the COVID-19 red zone are given three schemes. The schemes are 14 days self-isolation at home for employees in Jambi; employees that live outside Jambi but still in the Sumatra Island must be quarantined and tested; and other employees outside the Sumatra are restricted to work at the Jabung Field. The implementation plan for Jakarta backup office includes Emergency Response Plan, Rapid Test, and timing of utilization of backup office is recommended to be reviewed by relevant department involved prior approved by the Crisis Management Team of COVID-19 Prevention and Control. Safe house utilization is recommended to be executed once ERP and Rapid Test kits are readily available. Meanwhile for work force management, the discussion optimizing workforce working at Jabung Field, of course this will lead into minimizing the number working at Field, however this temporary measure is proposed to minimize COVID-19 outbreak risk, therefore this optimization will not have any impact to the regular compensation of workforce, and implementation of grid management at Jabung Field is recommended to be executed for rotational personnel since rotational personnel are stayed at field camp, the main concern for implementing grid management is for the daily commuter, since the daily commuter lived outside the camp at scattered locations, it is recommended to be tailored to address the site-specific situation and should be adjusted based on the future situation, and all these recommendations should have reviewed and endorsed by Crisis Management Team.