Currently Indonesia apply new gross split production sharing contracts for the oil & gas industry. Regulation of the Minister of Energy and Mineral Resources Number 8 of 2017 on Gross Split Production Sharing Contracts sets out a new economic structure for production sharing contracts (PSC) based on dividing gross production between the state and PSC Contractors, without a mechanism for the PSC Contractor to recover operating costs. For mature field, high operating cost regarding low production, high maintenance, and integrity issues are challenging for this new regulation. To optimize operating cost with robust and prudent planning is one of the key of success in this era. Pertamina Hulu Energi Offshore North West Java (PHE ONWJ) has started gross split scheme since January 2017 which start a new era of production sharing contracts.
With the start of gross split scheme, prioritization of production is the main objective, to gain maximum productivity in terms of operating and lifting cost. The methodology to optimize operating cost is by prioritizing productive remote well platform, Normally Unmanned Installation (NUI), by ranking of potential development and its production volume. The non-potential and non-productive NUI then be assessed to be shut off or run to fail. The assessment conducted using technical and economic approach to obtain optimized result. For non-potential and productive NUI, assessment to gain more production with minimum cost is conducted. Then, development could be focused on potential and productive NUI.
Foxtrot, one of flow station in PHE ONWJ working area, has eight active NUIs that are FA, FK, FG, FFB, FNB, FWB, HZEA, and HZEB. By conducting ranking of potential development and its production volume, company could focus on five Foxtrot NUIs for development (FK, FG, FFB, FWB & HZEA), two NUIs for optimization (FNB & FA), and one NUI that potential to be shut-off, HZEB. This action on the non-potential and non-productive NUI shut off could yet decrease operating cost by IDR 8.8 Billion/ year, eliminate potential personal hazard, and reduce system's backpressure due to its low API crude oil. Oil and Gas Company that operates old facilities in mature field could apply this approach to maintain their production by focusing on beneficial asset yet decrease operating cost.