FINANCIAL FEASIBILITY STUDY OF OIL AND GAS WELL IN INDONESIA CASE STUDY: NEW OIL AND GAS WELL IN PT PHE ABC

• Main Author: Rahman, Henni
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/52016
• Institution: Institut Teknologi Bandung

PT PHE ABC is a subsidiary of PT PHE (Pertamina Hulu Energi) which is engaged in exploration and production / upstream oil and gas. Seeing the continuing decline in oil and gas reserves in Indonesia and increasing demand, the government request to find more source. PT PHE ABC as an upstream company is trying to continue to increase production of oil and gas by opening a new project. With the government's decision through the Minister of Energy and Mineral Resources Regulation No. 08 of 2017, the revenue sharing between the government and PT PHE ABC will use the gross split method. The data used in this project was based on primary data and secondary data. Primary data was obtained from internal company and secondary data was obtained from financial reports, news, laws, and literature needed in writing. The purpose of writing this final project is to help PT PHE ABC analyze new projects that will be undertaken. The analysis is carried out by looking at the business situation externally and internally and will be followed by economic analysis. After the economic analysis is carried out, a risk analysis will be carried out to identify what could affect the final result of the economic analysis. External condition analysis was performed using PESTEL analysis. This analysis shows that the oil and gas industry is still an attractive industry for the government to run and support. However, in its implementation the company must still follow the applicable regulations because the oil and gas industry are one of the strategic industries in Indonesia. In addition to funding activities, PT PHE as the holding company that funds all investment activities of the subsidiary is in a healthy financial condition for the past 5 years. The method used for economic analysis is DCF. The results of economic analysis on the PT PHE ABC project show that this project can be implemented and will generate profits for the company. The NPV to be obtained is USD 46.701.182, the IRR obtained is 17,15%%, PBP and discounted PBP will last for 5,52 and 6,31 years respectively, and the PI has a value of 1,98. Based on the results of the above calculations, this project is feasible to run. From the risk analysis, there are several factors that affect the economic results of the project, namely the price of oil and gas, the percentage of oil and gas sales, capital expenditure, and the percentage of oil and gas split. Therefore, companies need to pay attention to these parameters and prepare various solutions and recommendations to prevent the worst.