Financial Feasibility Study of Oil and Gas Well in Indonesia Case Study: New Oil and Gas Well in PT ABC

Rahman, Henni; Damayanti, Sylviana Maya

doi:10.24018/ejbmr.2020.5.6.626

Cited by 1 publication

(1 citation statement)

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“…Oil and gas activities carried out in the oil and gas industry must be carried out with precise calculations so that the potential for financial loss are minimized. For this reason, it is necessary to carry out an economic analysis of the activities (Rahman and Damayanti, 2021). This analysis will determine whether the activity is feasible or not.…”

Section: Economic Feasibilitymentioning

confidence: 99%

Economic Feasibility Analysis of Fishing Job Operation in Well YS13

Ariyon

Santika

Fitrianti

2022

J. Geoscience Eng. Environ. Technol.

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Oil consumption in Indonesia has increased from year to year. However, the increasing demand for oil and natural gas is inversely proportional to oil and gas production, which always declines from year to year. One of the factors causing the decline in production is the well damage. Well YS13 is a well that is damaged in the form of fish in the well. A fishing job is the most appropriate option to solve the problem of the presence of fish in the well because the fish in the well must be removed to continue well production activities or drilling activities. This study aimed to determine the economic feasibility of fishing job activities to be carried out at the YS13 well. The research begins with the preparation of the required data, then calculate the predicted production of the YS13 well with the decline curve method, estimates the cost of the fishing job, and economic fishing time (EFT). And determines the economic feasibility of the fishing job project by calculating profit indicators, namely Net Present Value (NPV), Internal Rate of Return (IRR), and Pay Out Time (POT). The results of calculations using the decline curve method obtained that the total production for 20 months is 4293.52 bbl. The EFT value is 3 days with Ps = 10% and the total cost of fishing is $28.657,70. The economic value of the project with discount rate = 12%, MARR = 12%, NPV = $147.367,20, IRR = 114%, and POT = 1.44. From the results of the calculation of the economic feasibility, the project is considered feasible to be carried out.

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Section: Economic Feasibilitymentioning

confidence: 99%