Debottlenecking The Complexities of Stakeholder Management in Indonesia Offshore Platform Decommissioning

Abstract

Indonesia’s Offshore platform decommissioning is a complex activity involving lots of stakeholders with different interest and power. To date only one (1) platform that has been removed from its origin place offshore and sank as rig-to-reef near Kalimantan, Indonesia. The whole business process took 7 (seven) years from the first discussion in 2017 until the execution in 2022, which is not desirable for future decommissioning projects. This research collected data from the key stakeholders including the Production Sharing Contract (PSC) Contractor and several institutions involved in the project to examine the complexities of stakeholder alignment as study case for future decommissioning project. The qualitative analysis utilizes Current Reality Tree to find the root cause and Future Reality Tree to identify required injection to improve the stakeholder alignment. The results show three main challenges: unavailability of Abandonment and Site Restoration (ASR) Fund, decision of end-of-state of the facilities, and process approval for Asset Write-Off. The root causes are weak implementation of existing decommissioning regulations and lack of understanding of stakeholder’s needs. Injection into the future reality tree include formalizing funding mechanism for the PSC with no ASR fund, introduction of umbrella regulation to cover different business process in different ministries and establishment of ASR strategy by taking into account the PSC organizational capability.