For

Chemical Engineering Students

Engineering Faculty - University of Indonesia
Depok May 7, 2010
1. Babusiauz et all, Oil & Gas Exploration and Production. Reserve,
costs, contracts, IFP-Technip, 2004.
2. Centre for Economics and Management (IFP-School), Oil and Gas
Exploration and Production: Reserve, costs, contracts, Institute
Francais Du Petrole Publications, Paris 2004.
3. Undang Undang Republik Indonesia No. 22 Tahun 2001 Tentang
Minyak dan Gas Bumi.
4. Peraturan Pemerintah Republik Indonesia No. 42 Tahun 2002
Tentang Badan Pelaksana Kegiatan Usaha Hulu Minyak dan Gas
Bumi.
5. Widjajono Partowidagdo, Manajemen dan Ekonomi Minyak dan
Gas Bumi, Program Studi Pembangunan Program Pasca Sarjana
ITB, 2002.
6. Willem J H. Van Groenendaal, The Economics Appraisal of Natural
Gas Project, Oxford University Press, 1998.
7. Centre for Economics and Management (IFP-School), Oil and Gas
Exploration and Production: Reserve, costs, contracts, Institute
Francais Du Petrole Publications, Paris 2004.
How to estimate pra-exploration cost (surveys,
seismic acquisition, processing & interpretation)
How to estimate exploration cost (G&G study,
hydrocarbon resources calculation, infrastructure
and exploration drilling)
How to estimate value of hydrocarbon resources
(G&G study, original hydrocarbon in place, oil/gas
prices prospecting)
Field appraisal: role-law-regulation, uncertainty
factors, tools & technology, cost & benefit,
environment aspects, permit aspects.
How to estimate field development cost: G&G data
& study, reservoir simulation study, development
well planning, production facility & process, land &
entering access acquisition & preparation, HSE
study (AMDAL).
Market aspects & project economics (gas user,
oil/gas price: current & prospect, project
economics figure)
ECONOMIC-PRODUCTION MODEL
OUTPUT
- Selected Gas Deliverability
- Total Cost Function
- Maximum Profit
- Price Interval & Q Optimum
- Q Allocation Portion
RESERVOIR & PRODUCTION SIMULATION
OUTPUT
- Gas Proven Reserve
- Development Well Planning
- Gas Deliverability Scenarios
- Well Drilling Schedule
- Pressure Decline
- Compressor Schedule
- Condensate Production Yield
- Water Production Prediction
PRODUCTION FACILITY COST STUDY
OUTPUT
- Process Equipment Cost Schedule
- Compressor Cost Schedule
- Flowline & Pipeline Cost Schedule
- Environmental Cost Schedule
- Operating Cost
Reservoir
Data
PRODUCTION FACILITIES & PROCESS
SIMULATION OUTPUT
- Process Design & Equipment
- Preliminary Sizing of Equipment
- Equipment Material Determination
- Production Facility Installation Schedule
- Environmental Process & Equipment
Topographic
Survey &
Land Test
Geological &
Geophisical
Data
WELL LOCATION & COST STUDY OUTPUT
- Well Surface Coordinate
- Land Acquisition & Preparation
- Well Cost Schedule
- Workover Cost Schedule
PROJECT ECONOMIC EVALUATION
MODEL OUTPUT
- NPV
- IRR
- POT
- PI
-Gov Take
Process
Technology
Survey
Preliminary Survey costs (geographics data, satelite
data, land & sea data, weather & climate data,
access information, social & culture local society,
country & local goverment regulation)
Deeply Survey costs (soil investigation, preseismic
survey, gravimetry survey, location & road access
survey, wave & water depth survey, etc)
Seismic acquisition & interpretation costs
Land & access acquisition & preparation
Exploration Drilling Cost (Rig & drilling crew,
loging, mud & completion, general service within
drilling, coring, well material, etc)
G&G Interpretation & Study Cost
Other Costs (permits, Community Development,
Environment study, etc)
Estimate IHIP (Initial Hydrocarbon In Place) by G&G
Study, and define Hydrocarbon Reserve (Proven-P1,
Probable-P2, Possible-P3)
Hydrocarbon Reserve Certification (GCA, DMN,
Lemigas)
Define Hydrocarbon Recovery Factor (RF), Gas
Deliverability and or Oil Production Projection
Current Hydrocarbon Price & Projection (usually
predicted in 10 years)
Estimate value of hydrocarbon production for 10
years and make sensitivity of change of price
Estimate total value of hydrocarbon for 10 years or
more suitable with the total predicted hydrocarbon
production
Reservoir Simulation Study costs (for determination
development model, well coordinate, well depth,
estimate productive zone interval, gas deliverability)
Drilling study cost (well drilling type, rig capacity, well
cost estimate, drilling risk prediction)
Land & access acquisition and preparation
Development Drilling Cost (Rig & drilling crew, loging,
mud & completion, general service within drilling, well
material, etc)
Prod Facility Study Cost (Material Selection Study, Pre
FEED, FEED, Topographic & Soil Investigation)
EPC for Prod Facility
Other Costs (permits, Corporate Social Responsibility -
CSR, Environment study - AMDAL, etc)
R
E
S
O
U
R
C
E
S
I
D
E
N
T
I
F
I
E
D
Not Identified
Production
technically
feasible
Production not
technically
feasible
Economically
viable
Not
economically
viable
TOTAL
RESERVE
Proven
(P1)
Probable
(P2)
Possible
(P3)
Q6
Q5
Q4
Q3
Q2
Q1
YP1 YP2 YP3 YP4 YP5 YP6
M
M

S
C
F
D
Year of Production
Scenario-1
Scenario-2
Scenario-3
Scenario-4
Scenario-5
Scenario-6
Gas / Oil Market Prospect Study cost (for projection of
gas utilization, planning of crude oil delivery)
See & look for the blue print of local & cental
goverment in development planning therefore we can
get hydrocarbon demand in the short & long term
period
Learn & investigate hydrocarbon price (current &
future prospective), we can use credible consultant or
world foundation projection (OPEC, world bank, IDB,
World Energy Consult, etc)
Consider access & infrastructure condition from
hydrocarbon source to supply point or utilization plant
(road, sea port, air port, pipeline road plan, etc)
Material Selection Study (to define the type & spec of
material will be used in the facility)
Pre FEED (to define preliminary design for cost
estimate) & FEED (detail design for EPC requirements)
Topographic & Soil Investigation (to define sizing of
land use and preparation, cost of land)
Engineering (generally conducted by Eng Comp to
make input for Procurement and Construction req)
Procurement usually doing by tender
Construction usually conducted by Construction Com
Permit cost, Corporate Social Responsibility (CSR) cost,
Environment study - AMDAL, etc)
Gross Revenue (R)
Indonesia Share
(1-SH/(1-T))*ES
Equity To be
split, ES
Recoverable Cost (Rec)
Investment
Credit
Cost Recovery
FTP=5%
INDONESIA TAKE
Diff Price DMO
DDMO= 0
Tax = 40.5%
Taxable Income
Net Contr. share
Contractor Share
(SH/(1-T))*ES
TOTAL CONTRACTOR SHARE
CONTRACTOR CASH FLOW
Expenditure
DMO (Domestic Market Obligation)
Operator mempunyai kewajiban menjual minyak dan gas di
pasar dalam negeri sebesar 25% dengan harga (Fee) sebesar
Realized Net Price FOB.

Abandonment Cost
Biaya yang dianggarkan untuk membiayai kegiatan
pembongkaran fasilitas yang telah dibangun dan
pengembanlian pada fungsi lahan ke keadaan semula sesuai
lingkungan yang baik dan memenuhi aspek lingkungan. Biaya
ini biasanya dianggarkan setiap tahun di keuangan BPMIGAS.
Lihat di foto kopi Keekonomian Pemboran Sumur MTD-BB