A collaborative effort between subsurface, operation and commercial team has successfully escalated the value of idle marginal offshore brown field in south east Sumatera, Indonesia. Over the past several years Lidya field was idle due to wellbore and facility problem, big investment value are needed to reactivate Lidya field and it creates hesitation in management decision, also there is a security issue to be considered. This paper describes the methodology applied in evaluating all aspects considered to mitigate the investment risk, escalating economical value and to ensure all parameters perform as expected.

The evaluation method divided into three major parts, the first part starts from subsurface study that involving geophysical processing, geologist re-interpretation, and reservoir engineering analysis, one of the most important factors to be taken into account is the necessity of a good understanding of the reservoir in order to increase the possibility of success. The second part is operation evaluation, it captures production engineering analysis from well integrity assessment to artificial lift selection, facilities observation from pipeline assessment to platform refurbishment option and also designing new security system to prevent cable thievery. The third part is the most crucial part to justify the value of Lidya marginal field reactivation project, challenges in this part also interesting, because production sharing contract term has changed from Cost Recovery to Gross Split mechanism, several cases was observed by commercial team to find the very best case with the least risk that might occur and affect the investment.

As a result, the value of Lidya idle marginal field was escalated. It can be quantifed from oil rate that increase from 150 BOPD for the last five years before it went idle to 700 BOPD for full cycle project. Economic side also appealing, observation multiple cases led to optimum case that can give total contractor net cash flow at almost 19Million USD in new fiscal term Gross Split mechanism, this number is 4 times higher than Cost Recovery mechanism for contractor profitability.

Developing marginal offshore mature asset is a risky business, especially considering high volatility in oil prices. Collaboration and technology are vital to escalating the value and achieving higher recovery factors. Application of the multidisciplinary methods was considered as an appropriate way to approach and manage a complex marginal mature field redevelopment.

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