Designing the Maximum Permissible Production Cost of Oil and Gas Project Using Control Chart Analysis

2021 ◽  
Author(s):  
Ahmad Abdul Azizurrofi ◽  
Yosef Setya Buana
Keyword(s):  
Control Chart ◽  
Oil And Gas ◽  
Oil Prices ◽  
Oil And Gas Industry ◽  
Production Costs ◽  
Petroleum Exploration ◽  
Maximum Cost ◽  
Cost Of Production ◽  
The Government ◽  
The Cost

Abstract During the period of 2005 to 2020, the oil prices reached the highest level in 2008 (99.67 US$/bbl) and the lowest level in 2020 (39.16 US$/bbl). The fluctuation in oil prices will affect the expenditures for both investment and production in oil and gas projects. Based on this condition, the standardization of the costs of investment and production is needed to help the government and contractor in estimating the costs needed in an oil and gas project. As of December 2018, 471 projects (POD) have been approved by the government of Indonesia. All of them are projects that produce oil (oil projects) and gas (gas projects). In these projects, details of operating (Production) costs are included in the economic evaluation. For the purpose of this paper, Indonesia was divided into 2 areas (Onshore and Offshore). Each of the areas had 2 different types of projects (oil project and gas project). Then, to collect the data related to the cost of production and reserves, the maximum cost of production per BOE was calculated and produced using the Control Chart Analysis method. Lastly, the result was distributed to those aforementioned areas. Based on the evaluation and analysis of the cost of production from 273 oil and gas projects in Indonesia, oil and gas projects in Indonesia are economically acceptable as the maximum cost of production (US$ per BOE) is still far below the oil price (~65 US$/BBL). The following is the estimated Maximum Cost of Production generated in Indonesia: Onshore – Oil Projects (28.00 US$/BOE), Onshore - Gas Projects (12.27 US$/BOE), Offshore - Oil Projects (21.20 US$/BOE), Offshore - Gas Projects (15.95 US$/BOE). Finally, this paper will show how to produce the maximum cost of productions per BOE using control chart analysis. This paper is expected to provide references (method) for the government of Indonesia in giving approval to the cost of production proposed by contractors. In addition, this paper may provide contractors with a quick look at oil and gas industry in Indonesia, especially those who plan to invest in Indonesia. It may also help them create their petroleum exploration and exploitation strategy in Indonesia if they take this information into consideration, which will benefit both the government and contractors.

What Does Rent Give to Federal Budget (on the Russia's Budget Dependence upon "Oil Dollars")

2004 ◽  
pp. 51-69 ◽  
Author(s):  
E. Sharipova ◽  
I. Tcherkashin
Keyword(s):  
Oil And Gas ◽  
Strong Dependence ◽  
Oil Prices ◽  
Federal Budget ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Resource Rent ◽  
Tax Legislation ◽  
Russian Economy ◽  
The Government

Federal tax revenues from the main sectors of the Russian economy after the 1998 crisis are examined in the article. Authors present the structure of revenues from these sectors by main taxes for 1999-2003 and prospects for 2004. Emphasis is given to an increasing dependence of budget on revenues from oil and gas industries. The share of proceeds from these sectors has reached 1/3 of total federal revenues. To explain this fact world oil prices dynamics and changes in tax legislation in Russia are considered. Empirical results show strong dependence of budget revenues on oil prices. The analysis of changes in tax legislation in oil and gas industry shows that the government has managed to redistribute resource rent in favor of the state.

PETROLEUM EXPLORATION ON OUR PUBLIC LANDS

Geophysics ◽  
1953 ◽  
Vol 18 (1) ◽  
pp. 201-211 ◽  
Author(s):  
John R. Killough
Keyword(s):  
Oil And Gas ◽  
Petroleum Industry ◽  
Public Lands ◽  
Oil And Gas Industry ◽  
Petroleum Exploration ◽  
Bureau Of Land Management ◽  
Gas Industry ◽  
Conservation Policies ◽  
Conservation Projects ◽  
The Cost

Exploration for oil and gas has soared to an all time maximum, and it will continue to increase. In eleven western states such exploration will be predominantly on our public lands. These lands are managed to (1) conserve and perpetuate natural resources, (2) give greatest good to the greatest number, and (3) have the benefits exceed the cost. The conservation program of the Bureau of Land Management is engaged in the construction of soil and moisture conservation projects, range improvements, and revegetation. At the present time the Bureau is actively engaged in controlling the poisonous invader Halogeton, employing herbicides and reseeding. Seismic methods, as often employed, may be destructive to soil and vegetation or surface resources and therefore opposed to other activities and interests. Direct losses occur through improperly bulldozed trails and the use of stockwater reservoirs. Shot holes left unplugged are dangerous. The oil and gas industry must develop conservation policies within its own ranks. Roads may be properly constructed and damage repaired. The petroleum industry must decide by its own actions its future place on our public domain.

scholarly journals Assessment of the Impact of the Adverse Economic Geopolitical Environment on the Worth of Russian Oil and Gas Companies

2018 ◽  
Vol 8 (2) ◽  
pp. 30-43 ◽  
Author(s):  
V. S. Lipatnikov ◽  
K. A. Kirsanova
Keyword(s):  
Oil And Gas ◽  
Oil Prices ◽  
Oil Industry ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Market Capitalization ◽  
The Cost ◽  
Oil And Gas Companies ◽  
The Impact ◽  
Oil Company

The relevance of the chosen topic is connected to the fact that in the conditions of value-based management, market capitalization acts as a key indicator of the company efficiency. At the present time, when the Russian oil and gas industry has become the object of international sectoral sanctions, the identification of the impact of these sanctions on the domestic oil and gas companies’ value is of great practical importance. The article considers the cost of oil and gas companies and the impact of sectoral sanctions and negative dynamics of oil prices. The study was conducted using econometric modeling tools. For analysis 4 of the oil company with the largest market share, namely PJSC “Rosneft Oil Company”, PJSC “LUKOIL”, JSC “Gazprom Neft” and PJSC “Tatneft”, which in the aggregate represent 62% of the entire Russian oil industry, were selected. The features of valuation of Russian oil and gas companies are covered. The sanctions in the oil and gas industry of the Russian Federation are considered, the consequences of their introduction and the fall of the world oil price are analysed. The analysis to determine the impact of the cost of oil and gas companies from international sanctions and oil prices. It was found that in the oil industry market capitalization depends directly on the price of oil, and in the gas industry this impact is absent. It was discovered that due to the low level of oil prices, the sanctions did not have a significant influence on the cost of oil and gas companies. 

Main approaches to estimating the cost of shareholder equity of oil and gas producers

2020 ◽  
Vol 26 (3) ◽  
pp. 685-697
Author(s):  
O.V. Shimko
Keyword(s):  
Oil And Gas ◽  
Oil Prices ◽  
Minimum Cost ◽  
Free Cash Flow ◽  
Annual Reports ◽  
Comparative Approach ◽  
Economic Activities ◽  
Advantages And Disadvantages ◽  
Oil And Gas Producers ◽  
The Cost

Subject. The study analyzes generally accepted approaches to assessing the value of companies on the basis of financial statement data of ExxonMobil, Chevron, ConocoPhillips, Occidental Petroleum, Devon Energy, Anadarko Petroleum, EOG Resources, Apache, Marathon Oil, Imperial Oil, Suncor Energy, Husky Energy, Canadian Natural Resources, Royal Dutch Shell, Gazprom, Rosneft, LUKOIL, and others, for 1999—2018. Objectives. The aim is to determine the specifics of using the methods of cost, DFC, and comparative approaches to assessing the value of share capital of oil and gas companies. Methods. The study employs methods of statistical analysis and generalization of materials of scientific articles and official annual reports on the results of financial and economic activities of the largest public oil and gas corporations. Results. Based on the results of a comprehensive analysis, I identified advantages and disadvantages of standard approaches to assessing the value of oil and gas producers. Conclusions. The paper describes pros and cons of the said approaches. For instance, the cost approach is acceptable for assessing the minimum cost of small companies in the industry. The DFC-based approach complicates the reliability of medium-term forecasts for oil prices due to fluctuations in oil prices inherent in the industry, on which the net profit and free cash flow of companies depend to a large extent. The comparative approach enables to quickly determine the range of possible value of the corporation based on transactions data and current market situation.

ABOUT NECESSITY OF MATHEMATICAL MODELING OF THE BUSINESS PROCESS OF COST ESTIMATE CALCULATIONS IN THE CONSTRUCTION OF OIL AND GAS FACILITIES

2017 ◽  
pp. 139-145
Author(s):  
R. I. Hamidullin ◽  
L. B. Senkevich
Keyword(s):  
Mathematical Modeling ◽  
Quality Assessment ◽  
Business Process ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Construction Organizations ◽  
The Cost ◽  
Cost Of Construction

A study of the quality of the development of estimate documentation on the cost of construction at all stages of the implementation of large projects in the oil and gas industry is conducted. The main problems that arise in construction organizations are indicated. The analysis of the choice of the perfect methodology of mathematical modeling of the investigated business process for improving the activity of budget calculations, conducting quality assessment of estimates and criteria for automation of design estimates is performed.

Agile framework for capital projects

2021 ◽  
Vol 61 (2) ◽  
pp. 422
Author(s):  
Polly Mahapatra ◽  
Paris Shahriari
Keyword(s):  
Oil And Gas ◽  
Hybrid Approach ◽  
Oil And Gas Industry ◽  
Quick Response ◽  
Capital Projects ◽  
Gas Industry ◽  
Response To Change ◽  
The Cost ◽  
Early Phases ◽  
The Ideal

Under the increased pressure of rapidly changing market conditions and disrupting technologies, continuous improvements in efficiency become indispensable for all oil and gas operators. Traditional project management principles in the oil and gas industry employ rigid methods of planning and execution that can sometimes hinder adaptability and a quick response to change. Considering the potential that Agile principles can offer as a solution, the challenge, therefore, is to identify the ideal, hybrid, approach that leverages Agile while incorporating the traditional linear workflow necessitated by the oil and gas industry. This paper seeks to assess pre-existing literature in the application of the Agile principles in the oil and gas industry with a focus on Major Capital Projects (MCPs), backed by the successes experienced as a result of specific pilot projects completed at Chevron’s Australian Business Unit. In particular, this paper will focus on how agility has resulted in improvements to the cost, schedule, teaming and cohesion of MCPs in the early phases as well as key learnings form the pilot agility projects.

scholarly journals Aplikasi Metode Simpleks Pada Optimalisasi Biaya Bahan Baku (Studi Kasus: Ukm Najmah Klappertart)

2020 ◽  
Vol 17 (2) ◽  
pp. 129-140
Author(s):  
D Damayanti ◽  
A I Jaya ◽  
Resnawati
Keyword(s):  
Simplex Method ◽  
Production Cost ◽  
Production Costs ◽  
Optimal Production ◽  
Total Cost ◽  
Optimal Cost ◽  
Cost Of Production ◽  
The Cost

ABSTRACT The purpose of this research is to obtain an the optimal production costs of Klappertart based on the basic ingredients comparing the production cost of Klappertart in Najmah Klappertart with production costs using the simplex method. The result showed that the optimal costs is ,-. This result is equal to the total cost of klappertart by SMEs Najmah Klappertart, so it can be concluded that the cost of production klappertart based on the basic ingredients on SMEs Najmah Klappertart were optimal. Keywords      : Optimal Cost, Basic Ingredients, Production Costs. (A-Z), Simplex Method  

scholarly journals MANAGEMENT AUTHORITY OF OIL AND GAS RESOURCES IN ACEH TERRITORY AFTER SIGNING THE GOVERNMENT REGULATION NUMBER 23 YEAR 2015

2018 ◽  
Vol 3 (Number 2) ◽  
pp. 59-69
Author(s):  
Azhari Yahya ◽  
Nurdin MH
Keyword(s):  
Government Regulation ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Oil And Gas Fields ◽  
Oil And Gas Resources ◽  
Free Aceh Movement ◽  
The Government ◽  
Gas Fields ◽  
Energy Law

The oil and gas industry in Indonesia has been started since 1871 by Royal Dutch Shell. Meanwhile, the oil and gas industry in Aceh began in 1971 which was marked by the discovery of the Arun oil and gas fields. At that time, the management of oil and gas is done centrally by not involving the Government of Aceh as a regional producer. This led to armed conflict between the Government of Indonesia and the Free Aceh Movement and prolonged conflict (for 32 years) ended with the approval of the joint oil and gas management pattern found in the territory of Aceh as stipulated in the MoU Helsinki on August 15 2005, Law No. 11 of 2006 concerning the Government of Aceh and Government Regulation No. 23 of 2015 concerning Joint Management of Oil and Gas in Aceh. In order to finalize joint oil and gas management in Aceh, universities, especially the Faculty of Law, need to immediately prepare human resources who are competent in the oil and gas and energy law so that they are skilled at negotiating and drafting a Production Sharing Contracts (PSC) for oil and gas or Kontrak Bagi Hasil (KBH). For this purpose, law faculties need to immediately incorporate oil and gas and energy law courses into their curriculum.

scholarly journals Strategy of Strengthening Food and Beverage Industry in Indonesia

2019 ◽  
Vol 11 (4(J)) ◽  
pp. 102-110
Author(s):  
Ragimun ◽  
Sri Widodo
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Industrial Sector ◽  
Alcoholic Beverages ◽  
Beverage Industry ◽  
Food And Beverage Industry ◽  
Food And Beverage ◽  
The Government ◽  
And Performance ◽  
Food Commodities

The food and beverage industry has an important role to play in the Indonesian economy. This industry's contribution to the GDP of the non-oil and gas industry reaches almost 34 percent and absorbs a lot of labor. The purpose of this paper is to analyze the strategy of strengthening the food and beverage industry which can improve the performance and competitiveness of Indonesia's food and beverage industry sector. The approach used is a descriptive approach. The results of the analysis show that for some food commodities have a low competitiveness, while the beverage industry which is dominated by soft drinks and alcoholic beverages, Spirits drinks and Beer has an increasing trend. To improve the competitiveness and performance of Indonesian food and beverage products, the government has carried out several policies, but not yet optimal. The strengthening effort that must be made by the Government is to increase exports to non-optimal markets (Untapped Market Countries). In addition, for the development of small and medium industries, the industrial sector also needs fiscal incentives as well as increased industrial technology capabilities.

scholarly journals CALCULATION OF PRODUCTION COST IN UD. USAHA BARU WITH FULL COSTING METHOD

2019 ◽  
Vol 4 (1) ◽  
pp. 28-42
Author(s):  
Suprianto Suprianto ◽  
Bina Andari ◽  
Yely Sulistyawati
Keyword(s):  
Production Cost ◽  
Raw Materials ◽  
Analysis Data ◽  
Production Costs ◽  
Raw Material ◽  
Labor Costs ◽  
Material Costs ◽  
Other Information ◽  
Cost Of Production ◽  
The Cost

This study aims to evaluate the calculation of cost of production. The accuracy of the calculation of cost of production is influenced by the suitability in the accumulation and calculation of production costs which includes the cost of raw materials, direct labor costs and other costs (factory overhead costs). This research was conducted at UKM UD. Usaha Baru which aims to determine the calculation of cost of production at UD. Usaha Baru and to find out whether the calculation of cost of production is in accordance with the full costing method. The technique (method) of data analysis used in this study is quantitative analysis. Data collection techniques use interview techniques directly to obtain information from the number of units of monthly production, raw material costs, direct labor costs, and factory overhead costs, as well as other information relating to the calculation of cost of production. Based on the evaluation results for the calculation of raw material costs and labor costs are in accordance with the full costing method. However, the calculation of factory overhead costs is not in accordance with the full costing method because there are costs that have not been included in the calculation of production costs.

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