Oil and gas field development use floating production storage and offloading (Fpso) in improving the economic aspect of company in the gross split scheme

Purnomo Rusdiono, Asep Handaya Saputra

Research output: Contribution to journalArticle

Abstract

The development of marginal oil and gas fields in the offshore area in the Gross Split Production Sharing Contract (PSC) scheme has technical and economic challenges. This research focuses on economic analysis of the development of marginal offshore oil and gas fields. The field development method uses scenario development with Floating Production Storage and Offloading (FPSO) with two production time scenarios, Scenario I with a production time of 7 years and Scenario II with a production time of 10 years. Economic analysis uses capital budgeting indicators, such as NPV, IRR, and Payback Period. An economic evaluation was carried out to find the best method for developing marginal oil and gas fields by applying the Gross Split PSC scheme. It is expected from the development scenario, it can improve the company's economy. The sensitivity analysis is then performed to determine the sensitivity of the following parameter changes: the amount of production, oil and gas prices, capital costs (CAPEX), production operating costs (OPEX), and incentive tax affect the value of NPV, IRR and the Government take. The results show that the best scenario is Scenario I with production time 7 years. The economic analysis show that Scenario I is attributed to NPV of USD 29.1 million, IRR of 30.2% with Payback Period in year 2026.

Original languageEnglish
Pages (from-to)3319-3330
Number of pages12
JournalInternational Journal of Advanced Science and Technology
Volume29
Issue number7 Special Issue
Publication statusPublished - 14 Apr 2020

Keywords

  • Interest Rate of Return
  • Net Present Value
  • Payback Period
  • PSC Gross Split

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