Publications

The issue of marginal fields arises when it becomes difficult and costly to develop a new hydrocarbon reserve. There are actually many small fields available in situations where development is not economically feasible given contractual terms. The government has provided incentives for marginal field development, but criteria for marginal fields have not been established. Contractors and Pertamina have different perceptions of the definition of marginal fields based on their own interests.This paper endeavors to provide an understanding of marginal fields, and it proposes a definition and a set of criteria for recognizing a marginal field. A hypothetical case illustrates the application of these concepts.