Development Scenario Selection in Marginal Offshore Gas Field with Case Study of Dry Gas Field in East Java, Indonesia.

Abstract

Along with the fact that projected demand of natural gas as an energy source in Indonesia is increasing, the issue of energy security is becoming a concern for Indonesia government. With estimated proven reserves of 100.3 TCF, Indonesia's natural gas is expected to run out within 37 years. In gas field development, the economic result is the main reference in a decision-making process. One of the biggest factors in calculating the field economics is development scenario selection. The chosen scenario determine the field reserves and development cost that need to incurred. It requires a comprehensive decision making process related to the field character in order to maximize the value of the economics.
In this paper, a case study is also conducted on a marginal offshore gas field. The small gas reserve is an overcome challenge that must be carefully calculated. The field development stages that has entered the process for final investment decision made a quite detailed cost analysis is possible to be implemented. Therefore, a detailed deterministic calculation can be applied for the selection process with the aim to maximize profits or benefits from the project to be executed.
The results of the study showed that optimizing field development scenario could give a different suggestion to decision making process. The results of economic calculation shows that defining field location is very important in the selection of field development scenario. Besides that, gas sales rate, processing facility, contract and operation strategy is playing significant role in field optimizing. With various selections, a comprehensive economic analysis must be performed to provide a large selection of scenarios with the highest economic value.