Appraise Before build : Strategy to Optimize Uncertainty for Gas Field Development in Indonesia

Abstract

Field development is one of upstream business stage in order to extract hydrocarbon, furthermore to gain production and increase proven reserves for project owner and contributes to domestic needs. Theoretically, this phase is based on comprehensive technical study which is integrated from exploration, discovery and must have government approval from regulator and already get financial decision from project owner.
Oil Industry has high uncertainty especially if relates to execution stages and it characterized by high risk industries. Project owner always face uncertainties that cause cost overrun, delayed project and scope changing that tend to lower expected return. Crucial part is when the exploration and appraisal well are done, sometimes there is significant changes from estimation, moreover disturb execution of the project.
This paper wants to explain and discuss more detail about drilling execution strategy and facility construction strategy, either to execute by series or parallel. Hope this recommendation can give another perspective for all shareholders especially for regulator to give flexibility for contractor/ project owner to execute field development plan.