AHP Application to Select Logistical Location in Upstream Oil and Gas Operation: A Case Study

Abstract

The objective of this research is to select the best logistics operation location for supporting multi-production field operations in an upstream oil and gas working area in Indonesia (Company XYZ). Company XYZ will have several upcoming production fields in the future, which are in different locations along the working area and far from the existing logistics operation location. Existing storage occupancy also becomes another consideration in preparation for the logistics operation plan to support multi-production fields. Some locations are examined as alternatives for upcoming logistics operation locations. The selection process will go through the Analytical Hierarchy Process (AHP) method as part of the Multi Criteria Decision Making (MCDM) tool. Three decision criteria used in this research refer to company XYZ’s strategic pillars, which are Financial, HSE (Health, Safety, and Environment), and Production. The sub-criteria are selected from previous research that is relevant to the study. Some experts are involved in providing professional judgment for the available options to result in the alternative location with the highest priority as a business solution.