Factors Affecting Operation and Maintenance Cost Contingency of Distribution Gas Pipeline in Indonesia

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Operation and maintenance (O & M) activities are carried out to guarantee that the Gas Pipeline Infrastructure can operate reliably and safely. Estimated O&M Costs, which are used to generate the O&M budget for Routine, Non-Routine, and O&M Supporters, are based on a deterministic methodology, in which the components of the job and their costs are known. However, there are realizations of expenditures that have never been allocated, such as unforeseen work and handling of emergency conditions, as well as taking scheduled budget allocations for O & M activities, according to Company data for 2016-2019. These costs can be viewed as O&M Contingency Costs, which are costs that cannot be forecast or anticipated ahead of time but must occur. The long-term consequences of using the planned O&M budget allocation when the company has not set aside a special contingency budget can jeopardize gas distribution integrity and safety. This research is the initial stage of a series of studies to develop a model for estimating the O&M contingency cost of natural gas distribution. This study aims to obtain the components of the O & M Contingency Cost of Gas Pipes and the variables that affect the O & M Contingency Cost of Gas Pipes. The method used is literature study and expert validation using questionnaires. The company can carry out more actual budget planning by considering the factors that become contingency costs, in order to ensure that preventive, predictive, and corrective maintenance and
corrective actions can run in accordance with the asset life time cycle, and the integrity and safety of operational activities can be maintained
Original languageEnglish
Pages (from-to)88-94
JournalInternational Journal of Scientific and Research Publications
Publication statusPublished - 1 Jul 2021


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