EVALUATION OF ALTERNATIVE SOLUTIONS TO RECOVER DEFERRED OIL PRODUCTION DUE TO FACILITY CONSTRAINT: CASE STUDY OF BRAVO GATHERING STATION, PT. CPI

• Main Author: Fadli, Ade
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/57181
• Institution: Institut Teknologi Bandung

For more than 90 years, CPI has been the leading energy company and regarded as one of the highest oil-producing contractors in Indonesia. Bravo is one of PT. CPI's biggest oil fields where the produced fluid from this field is processed at Bravo Gathering Station (GS). Lately, Bravo GS has been facing a production problem where several oil producers have to be shut in as the field production exceeds the processing facility capacity. This problem has resulted in a significant amount of deferred oil production (DOP) and caused approximately 9.8 Million USD revenue deferment from 2019 to 2020. The number is expected to keep growing as the field is still being developed. The purpose of this research is to identify the root cause, figure out the best alternative to eliminate constraints, and develop a robust implementation plan. Brainstorming and focus group discussions with the experts are used extensively in this research to determine the root cause of the problem and develop alternative solutions. The Value Focused Thinking (VFT) approach is widely used in this final project where the group started to brainstorm the aspired values and goals and developed a list of alternatives to meet those value objectives. As the result, six alternative solutions are developed to eliminate the production constraints of Bravo GS. Analytical Hierarchy Process (AHP) is used in this research for its feature that allows integrated evaluation for both quantitative and qualitative analysis. Safety, economic performance, cost efficiency, and execution cycle time are the four criteria used. All experts are requested to provide an importance rating on pairwise comparisons of each criterion and alternative based on their technical knowledge and experience, to obtain the consolidated result. The 3rd alternative solution which reducing the incoming water production from the field through the water shut-off (WSO) job, appears to be the best alternative solution according to the consolidated AHP result. The experts seem to agree that this alternative has a very strong upside on safety, cost efficiency, and execution cycle-time criteria among other alternatives. Even though not the best in terms of NPV and DPI, this alternative is still considered to have excellent economic performances with a DPI above the economic hurdle (1.2), encouragingly a positive NPV. Other economic indices such as Payout time (POT) and ROR of this alternative also look compelling. It has the quickest payback period, which is only around two months, and the highest ROR, which is >800%.