Publications

Deep-water plays are high-cost ventures, yet they are valid projects. The deposits are larger accumulations and produce at higher rates due to better permeability and constant pressure. This allows ultimate recovery rates and extended drainage life of the reservoir. Exploring and producing oil and gas from deep-water discoveries require the availability of extensive funds, the formation of the integrated asset management team (IAM), the requirement of specialized equipment, and awareness of risks and challenges. Currently, there are several explorations and discovered deep-water fields in Indonesia, such as Abadi Field, etc., and several produced deep-water fields, such as Jangkrik Field, West Seno, etc. During 2007-2016, the exploration investment in Indonesia declined significantly. In addition, Indonesia is ranked the lowest in terms of oil and gas investment climate. Deep-water projects in Indonesia encounter some critical challenges, such as expensive investment cost (particularly exploration), less attractive fiscal incentives, long period of exploration, low investment internal rate of return (IRR), etc. This study discusses a model construction of Indonesian deep-water exploration and production challenges based on current data of economy and technology. The model is based on all completely basic necessity that may be attainable to oil and gas industries: an experienced team of professionals who possess the knowledge of the application of Front-End Loading (FEL) methodology and phases, special drilling, completion, and production devices, procedures, and specialist, and economic and engineering awareness and challenges. The model is very helpful to identify the problems and challenges which have to face for the next exploration and development at Indonesian deep-water fields in the near future.