Economic Analysis Using the Production Sharing Contract Gross Split Scheme in the SHP Oil Field

Prayitno, Sayoga Heru and Kristanto, Dedy and Athifa, Khusnul (2024) Economic Analysis Using the Production Sharing Contract Gross Split Scheme in the SHP Oil Field. Advance Engineering Science, 56 (06). pp. 4707-4714. ISSN 2096-3246

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Abstract

Gross split is a production sharing contract for upstream oil and gas
activities without any cost recovery. In the SHP oil field, an economic
analysis will be carried out using the gross split production sharing
contract (PSC) scheme to find out the value of the economic indicators
that can provide benefits to the government and the contractor. The
economic analysis carried out with parameters such as oil price of 70
US$/bbl adjusted for Indonesia crude price (ICP), escalation rate of 1%,
tax of 22%, discount rate of 10%, minimum acceptable rate of return
(MARR) of 10%, and operating cost of 12 US$/bbl. The portion of the
split between the contractor and the government is 63.8% and 36.3%,
which was obtained after carried out the base split, variable split and
progressive split schemes. Based on the economic analysis that has been
carried out, it is known that the SHP oil field has a positive value, as in
the net present value (NPV) obtained of 92,052,412 US$, internal rate of
return (IRR) of 52.14%, discounted profit to investment ratio (DPIR) of
1.25 and a relatively fast pay out time (POT) of 4.28 years from a contract
period of 20 years. Furthermore, based on the analysis it is concluded that
the SHP oil field could be further developed, which gave benefits to the
government and contractor

Key word : Economic analysis, Gross split,
Production sharing contract,
Sensityvity analysis.

Item Type:	Article
Uncontrolled Keywords:	Economic analysis, Gross split, Production sharing contract, Sensityvity analysis.
Subjects:	T Technology > TA Engineering (General). Civil engineering (General)
Divisions:	Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User:	Dr.Ir, MT Dedy Kristanto
Date Deposited:	01 Aug 2024 13:12
Last Modified:	01 Aug 2024 13:12
URI:	http://eprints.upnyk.ac.id/id/eprint/40565

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