CASE STUDIES: INDONESIA DECOMMISSIONING


Decommissioning Indonesia's 
Oil & Gas assets

Preparing an overarching decommissioning strategy and new guidelines to meet key national and economic priorities.



Challenge


Many of Indonesia’s oil and gas fields, both on and offshore, are coming to the end of their commercially viable operational lives. More than 60% of Indonesia’s oil and more than 30% of gas production comes from late-life-cycle resources spread across the world's largest island country. Yet, despite investment and use of enhanced oil field recovery measures, as well as increasing automation to extend the economic lifespans of these assets, decommissioning will soon become necessary.

However, Indonesia, like many countries new to the prospect of decommissioning its oil and gas infrastructure, faces many hurdles, including those of a legal, fiscal, technological, environmental, regulatory nature, not to mention industrial capacity issues.

A government and industry focus group approached Precision to undertake a comprehensive review of these and other obstacles that have hindered progress to date – with a view to formulating an overarching strategy and new guidelines that acknowledge the country’s decommissioning challenge as a key national and economic priority.

Scope of Work

Research & Analysis/Consultancy/Strategic Advisory/Workshop Planning/Reporting & Recommendations


Approach & Solution

  1. 1
    Undertake intensive discovery process, led by Precision’s Oil & Gas faculty head, to establish the client’s precise requirements, desired outcomes, programme participants, etc.
  2. 2
    Determine the specialisms required to pursue the brief, e.g. legal, regulatory, environmental, financing, tax, etc., and assemble relevant practitioners accordingly.
  3. 3
    Facilitate direct engagement between Precision’s specialists and client-side counterparts to elicit detailed understanding of their most significant challenges, obstacles, identify external stakeholders, etc.
  4. 4
    Provide feedback to qualitative research team, enabling them to build and conduct external stakeholder survey.
  5. 5
    Prepare and align workshop agenda, taking survey feedback into account; augmenting it with specialist insight and case studies designed to help participants realise the desired outcomes.
  6. 6
    Convene workshops, capture, analyse and evaluate further feedback.
  7. 7
    Prepare report and recommendations, based on findings.

Outcome

Since the work undertaken is still very recent (from mid-2019) at the time of writing, definitive outcomes are, as yet, unclear. We are, however, able to set out a brief summary of our findings below, together with a few of the recommendations we hope will be adopted in due course.

Conclusions and recommendations:

Conclusions and selected recommendations:

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