Sarjono, Imu and Yudoko, Gatot (2016) OPTIMIZATION OF PRODUCTION EQUIPMENT MAINTENANCE PLANNING TO REDUCE COST IN SUMATERA LIGHT OIL SOUTH OPERATIONS PT XYZ. International Conference on Ethics of Business, Economics, and Social Science. pp. 357-374. ISSN 2528-617X

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PT XYZ thru its operations in Sumatera Light Oil (SLO) South has been operating oil & gas production since 1940’s. It runs in Mama, Kilo and Papa as the major fields with about 1,200 active producer wells in one production sharing contract (PSC) area. Various technologies have been piloted and implemented since 1970’s to boost and sustain the production level, including water flood and chemical injection. The production level reached the peak performance in 1990’s and after that steadily declined toward the end of PSC by 2021. Current production level (2015) is around 74,382 Barrel Oil per Day (BOPD) with injected water volume 6.5 million BOPD in average. Managing mature field with aging facilities has specific challenge in its operational. The change of fluid composition requires more effort & cost to maintain production level. This situation resulted in higher operation and maintenance cost. The actual production has been declining by 4.6% per year from 2011 till 2015 and projected more than 10% per year starting 2016. However, at the other side, the actual maintenance cost increases by 1% - 7% since last 2 years due to resource requirement and anticipating operational complexity. This is highly impacting to the company’s revenue generation especially the oil price suddenly went down starting Q3 2014 from the level of $100’s to $30’s in Q4 2015. The model of operations/production system is used to frame the business issue and opportunity for maintenance cost reduction. The cost-efficient maintenance process in SLO South is affected by several contributing input factors that are grouped into 3 main elements. They are manpower utilization, contractor optimization and Inventory or spare-part usages, in addition to maintenance strategy as part of transformation. Focus Group Discussion (FGD) consisted several experts was formed for business solution. Decision analysis using combination of Value Focused Thinking (VFT) and Analytic Hierarchy Process (AHP) methods was used to provide best result. Alternatives were generated using VFT that was streamlined from the fundamental objective that is to reduce maintenance Operating Expenses (OPEX). As result, list of improvements programs is identified and converted into operation plan. The strategy map for SLO Maintenance South tem is developed to guide the organization achieving the target and sustain its success in base business. Maintenance OPEX reduction by $6,175,748 starting 2017 is expected when all improvement initiatives are well implemented and sustained until 2020. Keywords: Oil & Gas, Equipment Maintenance, Value Focused Thinking (VFT), Analytic Hierarchy Process (AHP), Operation and Production System Model, Strategy Map, Balance Scorecard

Item Type: Article
Subjects: Prosiding > Proceeding of ICEBESS 2016
Divisions: Fakultas Ekonomi dan Bisnis (FEB) > Pendidikan Ekonomi
Depositing User: Admin Pendidikan Ekonomi FE
Date Deposited: 30 Sep 2016 00:19
Last Modified: 01 Feb 2019 01:53
URI: http://eprints.uny.ac.id/id/eprint/41806

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