TY - GEN
T1 - Utilization of idle power plant for own use and excess power in an oil-and-gas company
AU - Ohira, Yosi
AU - Pambudi, Yoyok Dwi Setyo
AU - Hudaya, Chairul
N1 - Funding Information:
ACKNOWLEDGMENT The authors would like to thank the financial support provided by Universitas Indonesia through the 2017 PITTA funding scheme managed by the Directorate for Research and Community Engagement (DRPM) Universitas Indonesia.
Publisher Copyright:
© 2017 IEEE.
PY - 2017/12/5
Y1 - 2017/12/5
N2 - The Indonesian government (GoI) applies the cost recovery concept in the upstream sector of the oil and gas resources. It postulates the expenses spent by the contractor during exploration and exploitation activities will be settled through production sharing scheme. The cost includes the compensation for the production equipment and utilities, not to mention the power generator. When the oil-and-gas exploitation declines or even shut-in due to technical and economic reasons, some of them become idle assets. In this study, we investigate the utilization of the idle 2 × 750 kVA gas engine power generators for a new gas facilities project in different region. As the newly facilities require a smaller power supply (2 × 350 kVA) than the power plant capacity, the excess power is proposed to be sold to the electric utility. Here, an economic analysis is carried out to compare between purchasing new power generators and the utilization of the idle ones. The result shows that the utilization of idle asset provides economic benefit both for the GoI and the contractor. This scheme will solve the electricity need for own use and the excess power may be transferred to the electric utility, realized by power purchase agreement.
AB - The Indonesian government (GoI) applies the cost recovery concept in the upstream sector of the oil and gas resources. It postulates the expenses spent by the contractor during exploration and exploitation activities will be settled through production sharing scheme. The cost includes the compensation for the production equipment and utilities, not to mention the power generator. When the oil-and-gas exploitation declines or even shut-in due to technical and economic reasons, some of them become idle assets. In this study, we investigate the utilization of the idle 2 × 750 kVA gas engine power generators for a new gas facilities project in different region. As the newly facilities require a smaller power supply (2 × 350 kVA) than the power plant capacity, the excess power is proposed to be sold to the electric utility. Here, an economic analysis is carried out to compare between purchasing new power generators and the utilization of the idle ones. The result shows that the utilization of idle asset provides economic benefit both for the GoI and the contractor. This scheme will solve the electricity need for own use and the excess power may be transferred to the electric utility, realized by power purchase agreement.
KW - cost recovery
KW - excess power
KW - idle asset
KW - oil-and-gas industry
KW - own use power
KW - power plant
UR - http://www.scopus.com/inward/record.url?scp=85045905296&partnerID=8YFLogxK
U2 - 10.1109/QIR.2017.8168500
DO - 10.1109/QIR.2017.8168500
M3 - Conference contribution
AN - SCOPUS:85045905296
T3 - QiR 2017 - 2017 15th International Conference on Quality in Research (QiR): International Symposium on Electrical and Computer Engineering
SP - 296
EP - 302
BT - QiR 2017 - 2017 15th International Conference on Quality in Research (QiR)
PB - Institute of Electrical and Electronics Engineers Inc.
T2 - 15th International Conference on Quality in Research: International Symposium on Electrical and Computer Engineering, QiR 2017
Y2 - 24 July 2017 through 27 July 2017
ER -