Economic analysis of oil and gas field using PSC method

The government issues regulations related to new business schemes, namely the gross split scheme for businesses in the upstream oil and gas business. The new business scheme model no longer includes the calculation and supervision of cost recovery, but the Government immediately takes advantage of the gross profit and the difference belongs to the contractor so that the contractor is more flexible in processing costs and programs. This study compares the income from contractors and the Government if the PSC cost recovery contract scheme and the PSC gross split work area scheme are to be applied. The analysis scenario uses a development scenario based on work commitments until the contract period expires using a base scenario at oil prices of 60 USD/barrel, gas prices of 6 USD/MMBTU (3 percent escalation every year) and also analyzed on various operating costs. Production Forecasting from each Work Area is determined based on historical Production. The impact of using a gross split business scheme. The government’s income for the GS PSC is lower than that of the CR PSC, the GS PSC Scheme provides more income for the Contractor compared to the CR PSC, due to the definite split variable based on field conditions. In the calculation of this study, the same cost parameters are used for both the CR PSC and the GS PSC scheme.