INVESTMENT ANALYSIS OF NEW MUD PUMP UNIT CASE STUDY AT ONSHORE RIG (OWNED) PT PERTAMINA EP SUBANG FIELD

• Main Author: Achmad Luanto, Rizky
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/83455
• Institution: Institut Teknologi Bandung

PT Pertamina EP Subang Field is an oil and gas-producing company located in West Java. The target of oil and gas production in 2024 is 3275 BOPD and 134 MMSCFD. To maintain oil and gas production, a unit called onshore Rig is needed to perform the Workover, Well Intervention, and Well Services under controlling of the division of WOWS (Workover & Well Services) in Pertamina EP Subang Field. To improve the performance of the onshore Rig, one of the delays in operation is due to the non-optimal of the existing mud pumps. It is necessary to add 1 (one) new unit of mud pump to faster Rig performance which has the specification of high rate and high pressure to conduct killing and circulating job. To determine the most suitable option, PT Pertamina EP Subang Field is considering the purchase or rent option of a new mud pump. Financial modeling analysis was carried out using income generated from the onshore Rig called Rig Antasena T2 in contributing to oil and gas sales. Financial feasibility analysis used parameters such as NPV, IRR, and Discounted Payback Period. The purchase option showed better economic value than the rent option. The projected NPV is Rp 6,080,462,814 with an IRR of 13.25% (greater than the discount rate of 8.64%), and the Discounted Payback Period is 3.5 years. Sensitivity analysis was carried out by tornado chart which explained that annual sales revenue from oil & gas price combining with oil & gas contribution volume produced by onshore Rig Antasena T2 had a significant impact on the financial performance of this project, then followed by the sales revenue (oil & gas price), the sales revenue (oil & gas contribution volume), the sales revenue (oil price), the sales revenue (oil contribution volume), and then the manpower cost. A 20% increase in annual sales (oil & gas price + volume) would increase the NPV to Rp 40,755,845,827, while a 20% decrease would reduce the NPV to -Rp 22,290,305,106. Based on the business risk management through risk matrix 5x5, all the risk events for purchase and rent option have the RPN residual value of 1 by multiplying the scale number of probability and impact from each event. So, the project risk for providing a new unit of mud pump is in very low risk condition by doing several risk mitigations which is safe and viable to perform the investment project for both options, purchase and rent.