CAPITAL INVESTMENT ANALYSIS OF WELL HEAD CONTROL PANEL PROJECT IN KALIMANTAN (CASES STUDY AT PT XXX)

• Main Author: Vidya Prestiwi, Yona
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/82039
• Institution: Institut Teknologi Bandung

Indonesia's total crude oil production in the first semester of 2022 of 616,82 MBOPD. The average production of the Kalimantan area in the first semester of 2022 was 42.319 BOPD, about 0,04% of the total crude oil production of the Indonesian exploration oil and gas company. The process of lifting oil and gas in the production process generally uses a pneumatic hydroulic system controlled by the wellhead control panel. Well head control panel (WHCP) is a well control centre that functions as a system to control oil and gas production (lifting). Exploration oil and gas company, uses the services of a second party as a company that provides a well head control panel system in the project. PT XXX is an electrical contracting company that won a tender to provide a well head control panel system for the exploration oil and gas company. The financial investment analysis is used to ensure that the well head control panel project at the exploration oil and gas company is feasible by considering the NPV and IRR values. But first, due to limited information, PT XXX must make a well drilling sequence projection from the well drilling sequence data for 12 months with a total of 93 wells provided by the exploration oil and gas company, using the Monte Carlo method to obtain a well drilling sequence projection (well work plan) on this project. The result is that it takes 28 months to drill 216 wells. The value of this well head control panel project is USD 4 millions, PT XXX invested funds in operational expenditure (OPEX) are worth USD 3.670.630 with a WACC of 7,28%. The NPV is estimated at USD 247.880, profitability index 2,87 with an IRR value of 48,05%, and payback period are 27 months, 11 days. Some components of this calculation are still based on assumptions. In general, the project as actually implemented will remain dynamic. This is because there are several conditions that may change, especially in relation to technical matters and company procedures. Nevertheless, this investment analysis can be used as a recommendation for determining the basic costs to avoid overrunning or underrunning costs in the budgeting process.