Publications

In 2016, oil price hit its lowest price at i.e., 43.14 US$/Bbl (average oil price in 2016) over the last 12years. Since then, the Petroleum exploration and exploitation activities were decreasing worldwide due to the low oil prices and high cost of production. As of July 2017, there were 412 Projects or Plan of Development (POD) approved by government of Indonesia (2003 – 2017) and the number (POD) continues to increase despite the low oil price. This paper will evaluate and analyze the distribution of Productivity Index (PI) of PODs and the Commercial Reserves per POD (MMBOE/POD) to help Contractors to find the area in Indonesia that actively produce POD and that has the highest Commercial Reserves per POD. The purpose of this paper is, to divide the geographical areas of Indonesia into 6 different areas (Sumatera, Natuna Sea, Java, Kalimantan, Sulawesi and Papua). Then, to collect the data that related with PODs and Commercial Reserves and then the Productivity index of PODs and Commercial Reserves per POD are calculated and distributed to those aforementioned areas and finally define the area that has the lowest and the highest number of PI of PODs and Commercial Reserves per POD. Based on the analysis of 412 PODs, Sumatera become the most active area that produce 14 POD per year, meanwhile Natuna become the most passive area that produce less than 1 POD per year. As for Sumatera had the lowest Commercial Reserves per POD (7.83 MMBO/POD) and Natuna had the highest Commercial Reserves per POD (153.88 MMBOE/POD). Finally, this paper is expected to provide contractors with a quick look at oil and gas industry in Indonesia and guide them to choose which areas of Indonesia that will be explored and be exploited and also help them to create their petroleum exploration and exploitation strategy in Indonesia by considering on these informations which will provide benefits for both government and contractor.