Publications

Oil & gas companies in Indonesia continue to struggle in executing their projects due to highly volatile oil price, lower demand and marginal field developments. Consequently, these companies need to be as prudent as possible in investing their limited resources to the selected projects in their portfolio. In order to face this challenge, MedcoEnergi developed a tool called Medco Project Excellence Process (MPEP) Scorecard to effectively measure the maturity of all of its major projects using a quantitative approach. The application of this tool can greatly help MedcoEnergi in deciding which projects to execute or which projects to hold, and therefore enabled the company to maximize its returns from its oil and gas projects portfolio. The paper presents the design of the MPEP Scorecard and how the tool is applied. The application of the tool is integrated with the gate review which is held when the project wants to proceed to its next stage. The project assurance committee which is a specialized team consist of experts from engineering, subsurface, drilling, commercial, etc., will review the projects deliverables during this gate review and the tool will allow them to assign a “score” based on their assessment and their discussion with the project team. There will be an individual score for each discipline and these scores will be used as inputs to calculate a single (overall) score that can accurately represents the project’s maturity. Currently, MPEP Scorecard has already been applied to the major capital projects in MedcoEnergi and the results have been presented to the senior management. Based on their feedbacks, it is agreed that the tool can give a much clearer picture on the project’s current condition, significantly help them in making the go/no go decision and enables them to create the most optimum investment strategy.