TECHNIPFMC BUSINESS STRATEGY FOR GEOTHERMAL MARKET

• Main Author: Kusbianto, Tomy
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/70611
• Institution: Institut Teknologi Bandung

TechnipFMC with local entity of PT. FMC Santana Petroleum Indonesia is a national company with core business of manufacturing and services of Wellhead and Christmas Tree for Indonesia’s Oil and Gas company. It was built and established in 1984 located in Cakung - North Jakarta with a plant area of 10,000 sqm. TechnipFMC is a global company with corporate office in Houston USA and having a regional office in Singapore. TechnipFMC in Indonesia having 2 bases in Jakarta as Manufacturing plant plus Service Base and in Balikpapan as Services Base. Plant in Jakarta having a full manufacturing capabilities to manufacture Wellhead and Christmas Tree to support oil and gas company, having a fully equipped training facility for employees and customers. TechnipFMC provide product and service for upstream process in oil and gas business. This research focuses on one of the significant source of renewable energy in Indonesia is the Geothermal power. As a result of its volcanic geology, it is often reported that Indonesia has 40% of the world’s potential geothermal resources. According to the Renewable Energy Policy Network’s, Indonesia has the third largest installed generating capacity in the world in the Geothermal sector. Indonesia’s potential to generate energy from geothermal could solve its power problems and potentially boost economically. Indonesia’s government has identified more than 300 sites with an estimated 24 GW in Geothermal energy reserves across islands including Java, Sumatera, Nusa Tenggara, Sulawesi and Maluku. To determine business strategy, VRIO framework and company capability measures from internal analysis to identify the level of sustainability competitive advantages. PESTLE and Porter’s 5 Forces framework used to analyze the effect of external factors to the business environment. Using Diamond Model to formulate new insight that corresponded to its functional strategy. There are several factor internally in which affecting TechnipFMC competitiveness in the market. Besides TechnipFMC is a well known global brand but having expensive price, long delivery time and strict legal term and condition can put a jeopardize in Geothermal market in which TechnipFMC will compete. TechnipFMC having competitive advantages to have their own permit to export and import oil and gas equipment. Patent and intellectual property as manufacturer for wellhead and christmas tree from the beginning of process and throughout the lifecycle and compare to agent company status that they don’t have the process. Externally, TechnipFMC well known from its Customer for their expensive price, strict legal term and condition, long delivery time and first timer in Geothermal industry. Hence, TechnipFMC needed to apply certification and license to enter the market as such API 6D for manufacturing of master valve with expandable gate for Geothermal application thus TechnipFMC can compete better and ready to positioning themselves to compete in both local and international Geothermal company. Refer to internal and external analysis above, business strategy formulation created using TOWS matrix, STP and Diamond strategy in order to improve the strategy in Geothermal market as such competing through the tender. Applying for API 6D license, cooperation with suppliers for shorter lead time and cheaper price on raw material, utilizing local legal counsel and pushing Sales and Marketing to actively having a Geothermal company visit to gain a robust information regarding their drilling exploration and exploitation forecast thus it will be beneficial for TechnipFMC forward strategy on planning and forecasting. Implementation plan establish to cater the business strategic toward competing in Geothermal market.