FEASIBILITY & WELL BASIC PARAMETERS AT TUNA FIELD PT. MAHAKAM HULU BORNEO, EAST KALIMANTAN, INDONESIA

• Main Author: Betha Guardena, Feli
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/76933
• Institution: Institut Teknologi Bandung

Drilling Oil and Gas well at PT. Mahakam Hulu Borneo has been going on for 50 years, and Tuna field is one of the oldest gas fields that has been producing for 30 years. Currently, gas production from the Tuna field reaches 30% of the total production of PT. MHB of 517 MMscfd in 2022. The decline in gas production from year to year is something that cannot be avoided, considering that the field is mature and long produced. Drilling new wells continues to be carried out to withstand the rate of gas decline. PT. MHB has performs various effort to maintain and increase the oil and gas production by creating new idea, innovation, and optimize the development plan. Since 2019 The development plan of Tuna field as part of Operasi lapangan-lapangan project (OPLL), which obligate PT.MHB to drill 100 wells. Drilling new feasible well become mandatory to maintain sustainability gas production in term of NPV and IRR parameter. By the end of 2022, PT. MHB has fullfil 31% well of OPLL project. This business research explores financial analysis and risk assessment from the Tuna field, which is currently drilling to sustain and contain declining gas production rates. Financial analysis using Capital Budgeting Techniques with the Discounted Cash Flow method. Risk analysis is performed using scenario analysis, sensitivity, and Monte Carlo analysis. This study aims to build financial model and determine well basic parameters that greatly affects the economy of the well. Author determines the value of these basic parameters based on geological model and drilling data 2019-2022 and gas price estimation by company. Capital budgeting technique and discounted cash flow is used in this research to evaluate and select the project investment, and to put cash flow originating at different times on an equal basis, and then applied discount rate 10.43%. Author use NPV, IRR, Profitability index, and payback period to appraise new well project. Sensitivity analysis shows that there are 3 parameters that greatly affect the calculation of the well economy, that is; well reserves or gas production, gas prices, and capital expenditure. The value of this basic parameter will be used in capital budget technique in order to have rapid calculation of feasibility project, to see whether the well candidate to be proposed has a positive NPV economic value and IRR above the company's hurdle rate. The calculation of the well economy using basic parameter values gives an NPV value of 0.45 million USD and an IRR of 14%, 3-4% above the company's hurdle rate.