DECISION ANALYSIS OF ABANDONMENT AND SITE RETIREMENT FOR SAND PLANT FACILITIES GATHERING STATION

ABSTRACT


INTRODUCTION
PERTAMINA Hulu Rokan (PHR) is a subsidiary of PERTAMINA, Indonesia's state-owned oil and gas company. PHR is responsible for the exploration, development, and production of oil and gas reserves in the Rokan Block in Riau province, Sumatra, Indonesia, the Rokan Block is one of Indonesia's largest oil fields, covering an area of approximately 6,279 square kilometers (Pertamina Siaran Pers, 2021a). PHR took over the management of the Rokan Block from Chevron in 2021 and is now the operator of the block until 2041 (Asmarini, 2018;Karyza & Harsono, 2021).
PHR's operations in the Rokan Block include drilling, production, and distribution of crude oil and natural gas (Rizki et al., 2023;Syafrinaldi et al., 2022). The company is committed to maintaining safe and environmentally responsible operations while maximizing the potential of the Rokan Block PHR also aims to contribute to the local community's social and economic development in the Riau province (Pertamina Siaran Pers, 2021b). The company has implemented various community development programs, including education, health, and infrastructure projects, to improve the standard of living in the region (Pertamina Hulu Indonesia, 2022).
As one of Indonesia's largest oil producers, PERTAMINA Hulu Rokan (PHR) plays a significant role in meeting the country's oil demand. The Rokan Block, where PHR operates, has estimated oil reserves of over 6 billion barrels, making it one of the most significant oil fields in Indonesia, PHR aims to maximize the production of oil from the Rokan Block to support Indonesia's energy needs and reduce the country's dependence on oil imports. In 2021, PHR took over the management of the Rokan Block from Chevron, with a production target of 170.000 barrels oil per day (BOPD).
PHR's production from the Rokan Block will be sold to the domestic market, supporting Indonesia's energy security and economic growth. The company also plans to increase investment in technology and infrastructure to improve production efficiency and maximize the potential of the Rokan Block.
Abandonment site retirement refers to the process of permanently decommissioning oil and gas facilities and infrastructure that are no longer in use (Chandler et al., 2017;Ojukwu, 2020). This process involves the safe and proper closure of wells, pipelines, platforms, and other equipment, as well as the removal of all associated infrastructure (Jagerroos & Kayleigh, 2020). The goal of abandonment site retirement is to ensure that the decommissioned sites are safe, environmentally sound, and pose no risk to public health or safety (Bullard & Johnson, 2000;Malin, 2015;Rezaie & Anderson, 2020). It also involves restoring the site to its original condition or better, minimizing any impact on the environment and surrounding communities.
In the oil and gas industry, abandonment site retirement is required by regulations and industry standards to ensure that decommissioned sites are left in a safe and secure condition, PERTAMINA have a dedicated team responsible for overseeing the abandonment site retirement process and ensuring compliance with regulations and best practices.
The abandonment site retirement process typically involves several steps, including site assessment, plugging and abandonment of wells, removal of equipment and infrastructure, site remediation and restoration, and ongoing monitoring and maintenance (Jones et al., 2022). Abandonment site retirement is a critical part of the oil and gas industry (Jing et al., 2021). PERTAMINA are committed to ensuring that decommissioned sites are safe and environmentally sound, contributing to the long-term well-being of the communities where they operate.
The Duri Field is an oil field located in Riau Province, Indonesia, which is operated by PERTAMINA, the state-owned oil and gas company of Indonesia. The Duri Field is one of the largest oil fields in Indonesia and has been in operation since the 1950s, there are several gathering stations located in the Duri Field that are used to collect crude oil from various wells and prepare it for transportation. These gathering stations typically include separators to remove impurities, pumps to increase the pressure of the oil, and tanks to store the oil before it is transported to processing or refining facilities.
One of the facilities inside the gathering station is the sand plant facility, which is a facility for processing and separating sand from petroleum wells, oil that is lifted to the surface containing grains of sand from the bowels of the earth. The sand must be separated from the oil content so that the quality of petroleum can be accepted according to standards. The facility was built in 2000, used for 12 years until 2012, but is currently no longer in use because other more effective methods have been found to clean sand from the bowels of the earth. The Sand Plant Facility is planned to be included in the work plan for post-operation activities Abandonment site retirement (ASR). The research would like to unveil the decision-making of abandonment and site retirement for sand plant facilities gathering station. The researchers hope that this study can give readers more information regarding the issue discussed and how Pertamina deals with it.

METHOD
The research design used for this study was a cross-sectional survey through quantitative approach in which the data were collected from primary source and secondary source. After that, the collected data were analyzed using Simple Multi Attributes Rating Technique (SMART) which is a structured technique for organizing and analyzing complex decisions. SMART is one of the methods which aims to gather information about all data related to multiple attributes and multiple criteria. The data parameters are the data of the past and the future as needed. The performance of each alternative is represented in the value on scales of numeric, which will evaluate through a direct rating-procedure.
In this study, the primary data was collected through Focus Group Discussion (FGD) and interview with experts which has more than 10 years working experiences in project to have broad and deep view of the problems and solutions.
For alternative or option solution to the problem and factors affecting it, author generated Value-Focused Thinking (VFT) as follow:

Figure 1. Value-Focused Thinking
The secondary data the authors collected and utilized were data coming from article, journal, company regulations and other online source data. When conducting secondary data collection, it is essential to properly cite and attribute the original sources of the data to ensure ethical research practices. Additionally, researchers should consider the relevance and limitations of the data in relation to their research objectives and critically evaluate its suitability for their study.
As a first step, author defined structure decision makers as a result of discussion with experts who were involved directly to project execution at PT PERTAMINA Hulur Rokan with good amount of experience. Following the definition of the hierarchy, the next step is to collect data from subject respondents regarding the relative weighting of each criterion in relation to the others and each alternative in relation to the others based on attributes. Each subject-matter expert is surveyed as part of the data collection process. The author met with them and went through each alternative's résumé before demonstrating how to fill out the survey data.

Decision Analysis of Abandonment and Site Retirement for Sand Plant Facilities Gathering
It is important to exercise Problem Analysis begins with defining the problem, it must be cleared object. The statement of the problem is: Unuse assets without a future utility plan is the main issue, The Problem Analysis (PA) is conducted to define the problem described on the following table. I n d o n e s i a n J o u r n a l o f M u l t i d i s c i p l i n a r y S c i e n c e , 2 ( 9 ) , J u n e , 2023

Specifiying Question Is Is Not What is Distinctive About
What is the problem Unuse asset (idle) without future utility Active asset and inactive asset with future utilitity plan Iddle asset is part of past problems and burdens for pertamina What is the impact of the problem  Based on Kepner Tregoe Problem Analysis (PA) and verification is conducted by 5-Whys Root Cause Analysis, can be concluded that the root cause of unused asset without future utility plan is because the sand plant facilities has been replaced with new efficient technology, because there is no plan for reuse in the future, the facility will be proposed for abandonment & site retirement.
FGD took place involving subject matter experts to conduct VFT. The criteria and subcriteria are Project Cost and benefit. The scope of this project is only related to decision making to find the best scenario for Selection for Abandonment and Site Retirement Unused Asset Sand Plant Facilities.
Alternative solutions to be considered must be looked at from many aspects, a large company in formulating various alternative solutions of course must consider technical and non-technical aspects, of course all aspects considered must also be in the corridor of legal standing, the technical aspects to be considered are considerations of equipment integrity, operational equipment, aspects of direct costs and indirect costs, aspect strategy procurement and contracting with business partner, while non-technical aspects are company reputation, aspect coordination with government I n d o n e s i a n J o u r n a l o f M u l t i d i s c i p l i n a r y S c i e n c e , 2 ( 9 ) , J u n e ,  2023 agencies, and also aspects of the social impact arising from these activities, from the consideration mentioned above already identified 4 (four) alternatives to solve the problem, The alternative solutions that will be proposed are: 1) Utilize unused assets in other business units, This alternative refers to government regulations through SKK Migas Guidelines PTK-040/SKKMA0000/2018/SO, the purpose of this alternative is to utilize unused assets owned by upstream oil and gas companies from one business unit to another. who have different business legal entities, for example the assets of Pertamina Hulu Rokan located on the island of Sumatra are reused in the Pertamina EP company located on the island of Java. 2) Disassembled and taken to temporary storage as scrap. This alternative refers to government regulations through SKK Migas Guidelines PTK-040/SKKMA0000/2018/SO, the purpose of this alternative is to dismantle unused assets and then store them in the company's Warehouse and record them as scrap, this alternative also confirms that the unused assets are deprived of operational benefits, either part or all their operating benefits, so these assets cannot be used operationally in the future.

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3) In situ write off, sold to other party as scrap. This alternative refers to government regulations through SKK Migas Guidelines PTK-040/SKKMA0000/2018/SO, The purpose of this alternative is to sell unused assets directly to third parties, this alternative also emphasizes that the location of selling these assets is in the original location where the assets are placed, all dismantling costs and shipping costs for these assets are the responsibility of the buyer, this alternative gives the buyer freedom to develop the demolition work method and all demolition costs are the responsibility of the asset purchaser. 4) Utilized for purposes other than Upstream Business Activities. This alternative refers to government regulations through SKK Migas Guidelines PTK-040/SKKMA0000/2018/SO. The purpose of this alternative is to provide an opportunity for unused assets in the upstream oil and gas industry to be used for activities other than the oil and gas industry, such as for example these assets can be used for social activities, activities that can encourage environmental care activities, this alternative also allows assets is given to government agencies for their operational support.
The key to determining attributes in this study is to be the most important thing in the alternative determination stage business solutions that were studied were explored deeper by reconstructed value trees as divided the attributes into two categories, the Cost and the Benefits which will then be followed by the sub-category below. In the benefits category, there will be two subcategories, that are the Facility demolition/clear area and regulation compliance. In the facility demolition process, the schedule, HSSE risks and ease of construction will be emphasized, then in government regulation it will be associated with company reputation and permitting process. The estimate time and duration to execute the project until finish and financial closing project, The schedule is the important thing because will be part of measurable project success.

Constructability
Ease of construction implementation by minimizing disruption to operational activities and manageable operational risks. in the implementation of construction must comply with Serious Injury Fatality Prevention (SIFP) field guide and Managing Safe Work.

HSSE Risks
The risk of disruption to the HSSE aspect is very high, because this facility is in an active working area, this project involves a lot of field workers and various types of heavy equipment.

Permitting
This work involves a large number of permits issued by state institutions, involving permits at the central ministry level, provincial level permits and district level permits, permits are very important because the permit issuance process is very long.

Reputation
Pertamina as a state company has a very good reputation in terms of operations and compliance with government regulations, business considerations are always related to a reputation that has been good and has been built for a very long time, Pertamina will try to maintain this reputation as part of the shareholder's mandate.

Cost
Required budget for procurement & construction. The cost will be taken capital expenditure (Capex) for non-related business of current year, and include on annual cost recovery from GOI

RESULT AND DISCUSSION
The weighting for criteria or attributes has been discussed during focus group discussion which involved the experts. The discussion group participants were asked to give their opinion, their understanding of each alternative that will be presented with each criterion or attribute. then give weight to each criterion or attribute that is adjusted to current conditions in managing unused asset sand plant facility to be abandonment and site retirement. During the discussions, consistency of attributes/criteria and rating was reviewed to ensure consistency. The author had expected that perfect consistency would be difficult to achieve as some of the group discussion members, and on some occasion the consensus of numerical rating was made by voting.