Proactive Job Optimization in Heavy Oil Asset Optimization Team

Abstract

The oil and gas circumstance were changing rapidly in early 2020 where the oil price declined significantly more than 50% due to demand contraction as coronavirus pandemic spreading around the world and supply surge due to Russia/Saudi supply agreement breakdown. This condition causing unprecedented upheaval in business activities including the oil and gas industry including in C Corporation Indonesia, the leading oil producer in Indonesia. The project's purpose is to develop an optimization plan for the proactive job in a low-oil price environment by using simple linear programming that incorporated the recent technical lookback, production sharing contract economic calculation, and decision analysis process to develop alternative solutions. The optimization result would impact the operation management of proactive job activities related to resources adjustment, production, and operation expense (OPEX) outlook. This effort has successfully improved proactive job economic viability in the low oil price environment.

Keywords: Alternative solution, decision analysis, economic evaluations, forecasting, operation management, optimization.