Publications

Operating an oil and gas business in a market that constantly changes is extremely challenging. Oil price and new fiscal term have encouraged the company to implement cost effective paradigms for sustaining field life and the company’s growth. The Gross split regulation has been applied to the Pertamina Offshore North West Java (ONWJ) blocks. Despite the pros and cons of the regulation any new field development must be carefully planned and studied in order to achieve optimum production. This paper will present the strategy on how to commercialize the marginal field to sustain field production and optimize project economics under gross split regulation. The development strategy plays a significant role to the project economics, hence a comprehensive analysis of subsurface, engineering and economics have been established to achieve a reliable development strategy which will deliver added value. Integrated engineering evaluations along with project cost optimization have offered a new hope in monetizing marginal fields. The development strategy sensitivity covers an analysis of some possible scenarios, which consist of a number of development wells, well path design sensitivity and well placement along with conceptual engineering surface facility design. The result of the study showed that the option to drill one horizontal well and tie-in to the nearest existing facility scenario will solve the issue of high investment cost and unattractive project economics in monetizing limited volume of gas resources in the GQE Structure. Moreover, one development well was proposed and designed with deviated trajectory and will be penetrated perpendicular to the major fault, to achieve an effective drainage area of the ESP development well. A dual string completion method was considered to accommodate and develop different type of oil and gas reservoirs that present the ESP structure. Both projects are now under the internal selection phase, with interesting economics under the Gross Split regulation.