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

Prayitno, Sayoga Heru and Kristanto, Dedy and Athifa, Khusnul (2024) Economic Analysis Using the Production Sharing Contract Gross Split Scheme in the SHP Oil Fiel. Advanced Engineering Sciences, 56 (06). pp. 4707-4714. ISSN [1] B. Widarsono, National natural gas reserves and production: An analysis on potentials and challenges, Lembaran Publikasi Minyak dan Gas Bumi, PPTMGB Lemigas, Jakarta, Vol. 47, No. 3, 2013, pp. 115-126, 2013.0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80

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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

Keywords: ABSTRACT
Economic analysis, Gross split,
Production sharing contract,
Sensityvity analysis.

Item Type:	Article
Uncontrolled Keywords:	[1] B. Widarsono, National natural gas reserves and production: An analysis on potentials and challenges, Lembaran Publikasi Minyak dan Gas Bumi, PPTMGB Lemigas, Jakarta, Vol. 47, No. 3, 2013, pp. 115-126, 2013.0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 50% 70% 90% 110% 130% 150% IRR Oil Prod Oil Price Opex Capital0.00 0.50 1.00 1.50 2.00 2.50 3.00 50% 70% 90% 110% 130% 150% DPIR Oil Prod Oil Price Opex Capital S. H. Prayitno, D. Kristanto and K. Athifa, 2024 Advanced Engineering Science 4714 [2] W. Partowidagdo, Management and economic of oil and gas, Development Study Program, Postgraduate Program Institut Teknologi Bandung, Indonesia, 2002, pp. 46-54; 74-82. [3] Herianto, Economic analysis of data engineering on production sharing contract: Case study field A, Journal of Economics and Sustainable Development, ISSN 2222-1700, 2019. [4] G. Allison, Economics of petroleum exploration and production, PennWell Publishing Company, United State of America (USA), 1992, pp. 67-75; 143-152. [5] P. D. Newendrop, Decision analysis for petroleum exploration, PennWell Publishing Company, P. O. Box 1260, 1421 South Sheridan Road Tulsa, Oklahoma USA, 1975, pp. 84-96; 146-157. [6] Ministry of Energy and Mineral Resources Republic of Indonesia Decree Number 52/2017, about Second changes of Ministry of Energy and Mineral Resources Republic of Indonesia Decree Number 08/2017 about Production sharing contract gross split, Minister of Energy and Mineral Resources Republic of Indonesia, Jakarta, 2020. [7] S. L. Pulrba, Production sharing contract (PSC) cost recovery and gross split, Indonesia Energizing Forums, SKK Migas, Jakarta, 2017. [8] B. R. Anjani, and I. Baihaqi, I., Comparative analysis of financial production sharing contract (PSC) cost recovery with PSC gross split: Case study in one of the contractors SKK Migas. Journal of Administrative and Business Studies, 2018, Vol. 4 (2), pp. 65-80. [9] C. A. Pultri, Economic comparison of the huff and puff surfactant injection based on gross split scheme of the Ministry of Energy and Mineral Resources Decree No. 08/2017 and the Ministry of Energy and Mineral Resources Decree No. 52/2017 in the Dandelion field, Final report, 2020. [10] M. Ariyon, and E. K. Delwi., Economic comparative studi of marginal oil field development using production sharing contract and gross split. National Seminar on Technology and Engineering, Jakarta, 2018, pp. 23-29. [11] A. Nisrina, and H. Pramadika, Economic analysis of NSRN block by using PSC gross split and additional discretion, Julrnal Peltro Trisakti, 2020, Vol. IX (2), pp. 88-93. [12] Pramadika, H., and Satiyawira, B., The influence of gas price and variable component through contractor profit on gross split scheme, Julrnal Peltro Trisakti, Vol. VII (3), 2018, pp. 113-117
Subjects:	T Technology > TA Engineering (General). Civil engineering (General)
Divisions:	Faculty of Engineering, Science and Mathematics > School of Engineering Sciences
Depositing User:	Dr.Ir, MT Dedy Kristanto
Date Deposited:	17 Sep 2024 04:15
Last Modified:	17 Sep 2024 04:15
URI:	http://eprints.upnyk.ac.id/id/eprint/41177

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