EVALUATION OF GAS COMMERCIALITY USING CAPITAL BUDGETING ANALYSIS: CASE STUDY OF GAS FIELD EXPLORATION AND DEVELOPMENT IN CENTRAL SULAWESI AREA

• Main Author: Syarifuddin, Ade
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/67330
• Institution: Institut Teknologi Bandung

Sustainability of the oil and gas business is determined by exploration activities. Without any efforts to explore and commercialize new gas sources, the block will slowly shutdown and abandoned. Based on data from the Ministry of Energy and Mineral Resources of Indonesia related to production, gas production has decreased significantly over the last 7 years. One of the gas producing fields in Indonesia is the Donggi-Matindok field. Since the Donggi-Matindok Gas Field was developed in 2008, there are no new discovery of a new gas resource that can be commercialized, especially in the Central Sulawesi Area. This has resulted in reducing exploration and gas production activities in the area. Gas production in the existing field will decrease over time. Finding new discoveries of gas resources that can be commercialized is important as an effort to sustain the exploration & production activities and maintain energy stability, especially in the Central Sulawesi Area. Exploration and production activities need to be accelerated aggressively by reviewing and reassesment of all prospects that contain gas reserves. Utilization of economic calculations based on capital budgeting analysis have been conducted with determined input parameters, development scenarios, current gas business conditions and business opportunities. Through sensitivity analysis, it is found that the NPV value is highly depend and dominated by gas prices and through uncertainty analysis using the Monte Carlo method this project is feasible to execute.