TAF PUBLISHING

This study evaluates a new approach to perform an economic evaluation for the Low Low Pressure (LLP) project on the different platforms. P field is a Gas field in the Mahakam area, East Kalimantan, Indonesia. Since 1999, its production has decreased and is forecasted to fall below economical cut-off starting at the end of 2020.project may extend the life of the field. In 2016, An economic evaluation had been performed for the LLP pilot project on Platform 4 and Platform 5 but did not properly integrate the uncertainties behind the production profile. The new method proposed in this study develops a model from platform 2 data to capture production profile uncertainties by using factorial design. Monte Carlo simulation is applied to the model to obtain a production profile range. Economic analysis is then performed to calculate Net Present Value (NPV), Internal Rate of Return (IRR), and Payout Time (POT). Eventually, the new method concludes that the LLP project on Platform 2 will generate cumulative cash flow between 32.9 to 60.4 MUSD (NPV0) or 11.7 to 21.8 MUSD (NPV11) with IRR ranging between 27 to 34%. Therefore it is economical. Information gathered from Platform 2 evaluation hinted that only Platform 1 has the potential to be economical. Additional work is required to have a complete economic evaluation. However, the management should decide to go on with the platform 2 LLP project.