FIELD DEVELOPMENT OPTIMISATION STRATEGY FOR MATURE FIELD CASE STUDY IN BORNEO OIL COMPANY

• Main Author: Anarta, Andy
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/66791
• Institution: Institut Teknologi Bandung

Borneo Oil Company holds 20 years of rights to manage one of the marginal blocks in East Borneo from Indonesia Upstream Oil and Gas Authority. The fields have been producing hydrocarbon for 40 years and are part of total Indonesian oil and gas export. The peak of production has been reached in the ’90s and production plateau was maintained starting in early 2000 the field started to decline despite aggressive drilling and projects launched. When Borneo Oil Company was awarded the PSC of the block, the field entered fast production decline and increased production costs as of aging facilities. The company initiates some strategies to extend the life of the field by reviewing potential development projects to give positive outcomes to the business. The volatility of oil and gas prices, lower reserves, and increasing operating costs, create more complexity for the project’s final investment decisions. Investing in oil and gas is always capital intensive and high risk. This study will provide a thorough analysis of the company portfolio by assessing some scenarios that will give the optimum value to the company. The study is conducted by quantitative data analysis from the available information based on the company portfolio project box. Project valuations are calculated using Discounted Cash Flow (DCF) method and following the terms of Gross Split (GS) PSC. The risk of the projects is assessed by performing a simulation of the uncertainties in the project parameters and reviewing the sensitivities to the project’s outcome.