Economic Analysis Of Field Development Plan In Gelama Merah

The economic analysis of the Gelama Merah field involves a comprehensive examination of key factors, including the breakdown of costs, the intricacies of the Production Sharing Contract (PSC), the role of the National Oil Company (NOC), and the objectives of the host government. In dissecting the breakdown of costs, the analysis delves into the financial intricacies of exploration, development, and production, considering elements such as rig costs, well depth, and facilities. The PSC framework is scrutinized, emphasizing the cost and risk allocation to oil companies, profit-sharing mechanisms, and adherence to global standards. The NOC's objectives in maximizing wealth and maintaining control over resources guide its strategic decisions, while the host government focuses on encouraging exploration, providing a fair return, and reducing petroleum imports, emphasizing the transfer of technology for local industry development. This holistic economic analysis aims to unravel the nuanced dynamics shaping the Gelama Merah field's economic landscape, ensuring a thorough understanding of the stakeholders' roles, incentives, and implications for sustainable resource management and economic prosperity.