Investment Analysis for Largest Heavy Oil Field in Indonesia Under Indonesia’s Gross-Split Production Sharing Contract (PSC)

Abstract

XYZ field is largest heavy oil field in Indonesia, located in ABC Block PSC that will be managed by a National Oil Company (NOC) under new form of PSC, the Gross-Split PSC for 20 years starting August 2021- August 2041. This research aims to assess the investment analysis of XYZ field to find the best investment alternative that will give highest financial return for NOC. Data used are mostly secondary data that author retrieve from internal and external sources. Result from strategic approach show that ABC Block, especially XYZ field has a competitive advantage therefore NOC should maximize its investment in ABC Block. The result of economic evaluation show that Alternative-3 (Combination Program) is best alternative due to highest NPV value.