Using The Kepner-Tregoe and Analytical Hierarchy Process for Strategic Project Execution to RDMP RU V Balikpapan Project

Abstract

PT. PERTAMINA (Persero) has initiated Refinery Development Master Plan (RDMP), which was pioneered by RDMP Refinery Unit V Balikpapan. Through RDMP RU V Balikpapan, PERTAMINA RU V Balikpapan aims to increase the capacity of 100,000 BOPD to the existing Refinery Unit V Balikpapan, increasing Refinery Product (Fuel & Petrochemical) such as an increase in diesel fuel of 30,000 BOPD and new propylene product of 230,000 tons per year, increasing the quality of fuel product from Euro II to Euro V standard, increasing the Nelson Complexity Index (NCI) from 3, 7 to 8, 0 by additional conversion unit to product much more higher yield value product from 75% to 96%, increasing the flexibility on Crude Processing which having higher sulfur contamination. The total project cost is estimated at around USD 6.5 Billion, which is funded by PT. PERTAMINA (Persero) and project financing through lenders. The Contract for RDMP RU V Balikpapan Project was signed on December 10th, 2018. The Kickoff Meeting has established an effective date of February 28th, 2019, with a duration of 53 months. Until October 25th, 2022, the overall project has achieved 61.99% (actual) vs. 95.81%. The project has suffered mainly because of the COVID-19 pandemic, which has affected the progress of the project. So, the author would like to approach the mitigation plan in terms of finding a solution to the project delay that has to be accelerated from various sectors based on the root cause analysis by using a theoretical approach through two methods, which are Kepner-Tregoe Problem Analysis and Fault Tree Analysis. At the end of the thesis, based on the available alternative business solution items for each root cause factor, the author establishes an implementation as one of the objectives of this thesis that is deemed as a strategy and plan from the best-selected solution through The Analytic Hierarchy Process (AHP) to accelerate the project completion and also to achieve economical margin value including all parameter and variables as it has been defined as per investment decision.