Bayu-N3 was being shut-in (S/I) due to excessive water production (high water cut well) as the main cause of the high daily production decline of the well. Therefore, an integrated analysis was conducted to identify the source of excessive water production and handle the problem. The reactivation strategy of Bayu-N3 was well planned to solve and optimize the oil production of the well. Based on integrated analysis of Chan's diagnostic plot and cement evaluation log (CBL-VDL-USIT) data, the source of excessive water production at Bayu-N3 is water channeling, caused by the free pipe condition as the result of poor cement bonding between the casing and the formation. To handle the water channeling problem, remedial cementing was conducted to repair the cement bonding quality. Based on the C/O log evaluation at Bayu-N3 as the reactivation well candidate, there are six potential oil zones to be produced. The reactivation strategy was executed by perforating at interval 6544-6564 ft-MD and resulting 1602 BOPD with 0% of water cut. The economic analysis of the reactivation shows that Bayu-N3 well gives 5153 MUSD of NPV and 538% of IRR with one month and 29 days of POT. It is shows that the reactivation strategy of Bayu-N3 is technically and economically able to improve the oil production and gives good positive economic indicators. Furthermore, the successful of reactivation strategy in Bayu-N3 well could be used as reference to be implemented for other candidate wells in Bayu Field.