I Gede Devon Gautama

FIELD DEVELOPMENT SCENARIO OF MARGINAL FIELD USING OPERATIONAL COOPERATION CONTRACT SYSTEM BASED ON ECONOMIC ANALYSIS

Introduction

Field development scenario of marginal field using operational cooperation contract system based on economic analysis. Analyze marginal field development using Operational Cooperation (KSO) for Pertamina EP. Economic analysis (NPV, POT, IRR) and sensitivity study determine viability to boost production.

Abstract

Abstract— Pertamina EP currently manages many old fields and dozen of them are marginal fields that require serious handling to be able to increase the production of Pertamina EP. Operational Cooperation (KSO) is a cooperation contract between Pertamina EP that works with the contractor in the management of oil and gas field. The contractor works on a certain work area from Pertamina EP's marginal field, while the KKKS right remain in hands of Pertamina EP. The KSO offer an effort to optimize the marginal fields so that it is expected to increase the production of Pertamina EP. Pertamina EP is also expected to focus more on efforts to increase production in the main fields and other fields which begin to show sufficient production. This paper aims to analyze whether the “X” field has good economic or not. “X” field is analyzed based on the Operational Cooperation contract, then the NPV, POT, IRR and sensitivity analysis of oil price, investment, operating cost, production are obtained. The result of economic calculation and production forecasting are based on “X” field’s data obtained from “Y” company.Keywords—Marginal Field. Old Field, Operational Cooperation, Economic Analysis

Review

This paper addresses a highly relevant and pressing issue for national oil companies like Pertamina EP: the optimization and increased production from marginal and old fields. The proposed solution, leveraging an Operational Cooperation (KSO) contract system and subsequent economic analysis, offers a practical approach to tackling this significant challenge. The primary objective, as outlined in the abstract, is to assess the economic viability of a specific 'X' field under such a contractual framework, which is a crucial first step in deploying resources effectively and allowing Pertamina EP to focus on its core, higher-producing assets. A significant strength of this work lies in its direct applicability to a real-world operational problem facing Pertamina EP. The methodology, focusing on standard economic indicators such as Net Present Value (NPV), Payback Period (POT), Internal Rate of Return (IRR), and sensitivity analysis, is appropriate and robust for evaluating investment decisions in the oil and gas sector. The reliance on actual field data from 'X' field, obtained from 'Y' company, adds substantial credibility to the analysis, promising results grounded in practical realities rather than theoretical assumptions. The explicit focus on the KSO system provides valuable insight into a specific contractual model currently employed for marginal field development. While the abstract clearly sets the stage, the full paper would benefit from elaborating on certain aspects to maximize its impact and generalizability. For instance, providing more detail on the specific characteristics of 'X' field (e.g., current production, remaining reserves, specific geological or operational challenges) would contextualize the economic analysis more deeply. It would also be valuable to understand if the KSO contract considered is a generic model or tailored specifically for 'X' field, and what key contractual terms significantly influence the economic outcomes. Finally, while the focus on 'X' field is specific, discussing the broader implications of these findings for Pertamina EP's overall strategy concerning its portfolio of marginal fields, or even for other national oil companies facing similar dilemmas, would significantly enhance the paper's contribution to the broader industry knowledge.

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