CAPITAL INVESTMENT OPTIMIZATION IN STRATEGIC BUSINESS PLANNING PROCESS TO IMPROVE REVENUE AND MAXIMIZING VALUE

• Main Author: Vidyaning Kusuma, Dian
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/75024
• Institution: Institut Teknologi Bandung

Facing the end of contract expiration on August 2021 and two years transition period on 2022- 2023 PT. XYZ had developed business plan strategy to optimize all resources and capital expenditure to focus on high value activities that deliver maximum value and higher revenue for both Government of Indonesia (GOI) and PT. XYZ corporate. In this final project, will discuss about the management operation strategy in Heavy Oil (HO) Team as one of division in PT. XYZ Company to manage capital investment in strategic business process to maximize value and increased revenue approaching end of concession on Aug 2021 and facing massive aggressive strategy of PT National Oil Company in 2022. Heavy Oil (HO) business plan for 2021 that been approved by PT. XYZ corporate with the total operational budget $24.8MM to execute all optimization activities in 2021 with total 6.8 rigs as resources to all work over and stimulation. Following the business strategy given direction form Government of Indonesia (GOI) to maintain all resources support proactive activities to achieve production target, PT. XYZ need to maintain the resources during transition period in Aug’21 and beyond on 25 rigs flat for Sumatera Operation both Heavy Oil (HO) and light oil team. That guidance from GOI impact on internal Heavy Oil (HO) Business Planning, to be aligned with that Government guidance Heavy Oil team need to maintain 10,3 rigs with proposed Work Plan and increase budget to ~$31.9 MM to cover additional 3,5 rigs resources until Aug’21 and will prepare increasing rig resources to support 2022-2023 business plan. The final project focus was to develop an optimization plan to increase revenue and maximize value for the investment option proactive job during transition period. In this the final project, the author uses operation management, financial management and decision analysis to create alternative solutions.