scholarly journals Monte Carlo Net Present Value for Techno-Economic Analysis of Oil and Gas Production Sharing Contract

2019 ◽  
Vol 10 (4) ◽  
pp. 829
Author(s):  
Fermi Dwi Wicaksono ◽  
Yusri Bin Arshad ◽  
Haeryip Sihombing
Keyword(s):  
Monte Carlo ◽  
Economic Analysis ◽  
Net Present Value ◽  
Oil And Gas ◽  
Gas Production ◽  
Present Value ◽  
Oil And Gas Production ◽  
Production Sharing

FAILURE TO ACHIEVE PLANNED ECONOMIC PERFORMANCE OF OIL AND GAS PRODUCTION PROJECTS DUE TO LACK OF RISK ASSESSMENT AND UNCERTAINTY QUANTIFICATION

2020 ◽  
pp. 75-80
Author(s):  
M.Y. Nazarenko ◽  
A.B. Zolotukhin
Keyword(s):  
Economic Efficiency ◽  
Economic Performance ◽  
Quantitative Assessment ◽  
Net Present Value ◽  
Oil And Gas ◽  
Gas Production ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Oil And Gas Production ◽  
Predicted Values

Quantitative assessment of risks and uncertainty has always played the most important role in the evaluation of oil & gas projects. Any estimated, measurable or evaluable magnitude contains an uncertainty, whether it concerns measuring watercut by means of a multiphase flow meter (MPFM) or to the net present value (NPV) of a major E&P project. Evaluation of project economics, e.g. the calculation of net present value (NPV), internal rate of return (IRR), OPEX and CAPEX shall be probabilistic, i.e. carried out with the quantitative assessment of risks and uncertainty of estimated (predicted) values. Nevertheless probabilistic estimate takes place very rarely. Most commonly, assessment of risks and uncertainty would be intuitive or based on a number of deterministic scenarios mistakenly referred to as pessimistic, optimistic and most probable. This research simulates failure to achieve target economic efficiency of E&P projects with no quantitative assessment of risks and uncertainty, and reviews previous international research conducted to identify the effect of ignoring probabilistic estimates related to the evaluation of E&P projects on their final economic efficiency.

scholarly journals Gross Split Contract Framework Regulation on the Caring for People

BESTUUR ◽  
2020 ◽  
Vol 8 (2) ◽  
pp. 96
Author(s):  
Kirana Intaniasari
Keyword(s):  
Oil And Gas ◽  
Secondary Data ◽  
Study Data ◽  
Gas Production ◽  
Literature Study ◽  
Oil And Gas Production ◽  
Production Sharing ◽  
The People ◽  
The Times ◽  
Sharing Patterns

<p>This study aims to determine the model of oil and gas governance in Indonesia in terms of the interests of the State to protect natural resources that should be controlled for maximum use for the prosperity of the people. This study is based on the results of normative legal studies that are descriptive. The type of data used is secondary data obtained from literature study data collection techniques, which are then analyzed by carrying out systematic interpretation of the law. Systematic means, making a classification of written legal materials, to facilitate the work of analysis and construction. The results of this study show that oil and gas management arrangements began in the Dutch colonial period and continue to change with the times up to now, specifically the regulation of upstream oil and gas. Upstream oil and gas management has changed several times, namely the Concession system, the Contract of Work system, Production Sharing Contract (PSC) and finally the Gross Split Production Sharing Contract. The emergence of Gross Split aims to improve the PSC system and improve the efficiency and effectiveness of oil and gas production sharing patterns. Even though Gross Split still has weaknesses, but when compared to the previous system, Gross Split is more in line with the country's goal of being as broad as possible for the people.</p><p> </p><p><strong>  </strong><strong>Keywords:</strong> Mining; Gross Split; Welfare State.</p>

Success Story from Drilling Program Evaluation of Development Wells in 2018 & 2019, and How to Promote An Effective Drilling Program for 2020 and Beyond for Indonesia

2020 ◽  
Author(s):  
S. Faisal
Keyword(s):  
Oil And Gas ◽  
Gas Production ◽  
Oil And Gas Production ◽  
Actual Performance ◽  
Oil Companies ◽  
Drilling Performance ◽  
Production Sharing ◽  
Drilling Parameters ◽  
Drilling Parameter ◽  
Drilling Cost

There are 32 oil companies in Indonesia that will perform development drilling in 2020 with total number of development drilling plans are 395 comparison, there were 289 development wells in 2018 and 322 development wells in 2019 respectively were drilled and contributed to national oil and gas production. All development drilling activities are reported to Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) by the Production Sharing Contract (PSC) contractors in the form of spreadsheets. SKK Migas will then evaluate the development drilling performance to be used as references and for consideration in the drilling program approvals for the following year in the Work Program & Budget event. The evaluation includes important drilling parameters. During the last 3 years, SKK Migas has managed to collect data and actual report programs from all PSC’s. Based on that data, an evaluate was exercised and will be used as reference for the next development drilling program for the same PSC or other PSCs which has the similar subsurface challenges or operates in the same areas. This will therefore make a good engineering future plan and will achieve the efficiency of the drilling cost, and can be challenged to be more efficient and effective. For the future, these drilling parameter data will become as benchmark such as a cost/ft or cost/day per PSC per well which is already drilled in Indonesia. There will be more data for PSC’s when making a Plan of Development (POD) proposal from some areas which will be developed into a prospective targets for producing oil and gas, and will also enable SKK Migas to get effective calculations for the related economic issues. This paper will illustrate how SKK Migas manages development drilling program activities in Indonesia using spreadsheets. This paper also illustrates how historical data of actual performance is compared, evaluated and analyzed for future reference.

scholarly journals A Genetic Algorithm Integrated with Monte Carlo Simulation for the Field Layout Design Problem

2018 ◽  
Vol 73 ◽  
pp. 24 ◽  
Author(s):  
Leonardo de Pádua Agripa Sales ◽  
Anselmo Ramalho Pitombeira-Neto ◽  
Bruno de Athayde Prata
Keyword(s):  
Genetic Algorithm ◽  
Monte Carlo Simulation ◽  
Monte Carlo ◽  
Design Problem ◽  
Oil And Gas ◽  
Probabilistic Approach ◽  
Layout Design ◽  
Gas Production ◽  
Oil And Gas Production ◽  
Field Development

Oil and gas production is moving deeper and further offshore as energy companies seek new sources, making the field layout design problem even more important. Although many optimization models are presented in the revised literature, they do not properly consider the uncertainties in well deliverability. This paper aims at presenting a Monte Carlo simulation integrated with a genetic algorithm that addresses this stochastic nature of the problem. Based on the results obtained, we conclude that the probabilistic approach brings new important perspectives to the field development engineering.

scholarly journals BENTUK PERLINDUNGAN HUKUM TERHADAP KEKAYAAN MINYAK DAN GAS BUMI SEBAGAI ASET NEGARA MELALUI INSTRUMEN KONTRAK

2018 ◽  
Vol 2 (3) ◽  
pp. 471
Author(s):  
Faizal Kurniawan
Keyword(s):  
Oil And Gas ◽  
Gas Production ◽  
The State ◽  
Oil And Gas Production ◽  
State Immunity ◽  
Production Sharing ◽  
General Welfare ◽  
The Government ◽  
Main Instrument ◽  
Government Contract

State has the power to manage natural resources for the sake of social justice, the general welfare and are used as much as possible the greatest benefit for the greatest welfare of people. Contract law is the main instrument used to protect the state assets including oil and gas. Production Sharing Contract as a legal safeguard for oil and gas, is a fundamental pillar in the effort and utilization management activities of oil and gas. In the contracts involving the Government, called government contract, there is a unique characteristic which is not entirely subject to private law. In principle, the state should not be harmed, called as state immunity. This principle also applies universally in the interest of protecting the state assets. Keywords: Production Sharing Contract, Government Contract, State Immunity, Protection of State Assets Clause.

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