Investment Analysis Upgrading Capacity of Produced Water Treatment System (PWTS) at a Gas Processing Facility
DOI:
https://doi.org/10.59141/jrssem.v5i5.1237Keywords:
Produced Water, Produced Water Treatment System (PWTS), Failure Mode and Effect Analysis (FMEA), Risk Matrix, Cost-Benefit Analysis (CBA)Abstract
The oil and gas industry plays a strategic role in supporting national energy security. Along with the increase in the age of the production field, there is an increase in the volume of produced water which often exceeds the design capacity of the Produced Water Treatment System (PWTS) at PT XYZ's facilities. This condition interferes with the smooth operation and has the potential to cause danger. This study evaluates investment in PWTS capacity building from technical and economic factors. Technical Risk Assessment uses Failure Mode and Effect Analysis (FMEA) and Risk Matrix to assess the risk of equipment failure due to capacity limitations. Economic Risk Assessment uses Cost-Benefit Analysis (CBA) to evaluate the feasibility of an investment. The integration of the two methods concluded that the optimum capacity of PWTS is 6000 BWPD, resulting in a Net Present Value (NPV) of 84.83 Million USD. Furthermore, the Sensitivity Analysis confirmed the feasibility of the project with a production drop tolerance limit of up to -1.5% per day. This technical, economic, and sensitivity-based analysis is a key component of Risk Management in investment decision-making.
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