The demand of oil and gas in Indonesia is increasing significantly and continues to grow. The Indonesian government sets a target to boost its oil production to 1 million barrels of oil per day (MMBOPD) and 12 billion standard cubic feet of gas per day (BSCFD) by 2030. One of the strategies to fulfill the target is from the development of marginal oil and gas fields. Marginal Field is A field that may not produce enough net income to make it worth developing at a given time; should technical or economic conditions change; such a field may become commercial. Developing the project in marginal fields requires careful economic evaluation to ensure project feasibility and profitability while considering supporting sustainable practices. The factors, such as fluctuating oil and gas prices, initial investment costs, operating costs, uncertain reserve estimates, and fiscal terms, contribute to the inherent risk associated with these projects. Therefore, a comprehensive understanding of project economics with effective monitoring and evaluation strategies is essential for making informed investment decisions and project execution to maximize the potential of these valuable resources. This paper provides practical advice to project teams, project and portfolio managers, investment managers, and decision-makers in the oil and gas industry by outlining key economic indicators and analyzing the interplay between energy demand and project profitability, emphasizing the importance of the business case throughout the project lifecycle. Regularly evaluating benefits ensures the project remains aligned with the original justification and strategic objectives. Projects that can no longer achieve the expected benefit or are no longer relevant should be reconsidered.
Wibiksana et al. (Mon,) studied this question.