Indonesian Oil Company Research Articles

PERTAMINA AND SAUDI ARAMCO JOINT VENTURE PROJECT OF REFINERY BUILDING IN INDONESIA AS INDONESIAN STRATEGY FOR ENERGY SECURITY

Indonesia’s demand for energy to maintain its industrial development has grown significantly. As a consequence, Jakarta needs new energy sources to support the shortage of diesel and gasoline as the main resources. Saudi Aramco has been a vital partner to fulfil the energy supply considering its source and production capacity. This paper will scrutinise the joint venture project between Indonesian oil company, Pertamina and Saudi Arabian oil company, Saudi Aramco as an Indonesian strategy to overcome its growing need for oil and pursue its energy security. This qualitative research will employ the concept of the International Joint Venture (IJV to examine the role of the government of Indonesia in the negotiation and Implementation process and the challenges in implementing the project.

THE DYNAMIC CORRELATION BETWEEN OIL PRICES AND THE INDONESIAN OIL COMPANIES’ STOCK PRICE

This study aims to analyze the correlation between oil prices and the Indonesian oil companies’ stock price during the pandemic of COVID-19 by testing the effect of oil price changes on companies' stock return and stock volatility. Also, by considering the dynamic correlation between oil prices and the Indonesian oil companies’ stock prices. The data were collected from secondary data at www.finance.yahoo.com, Oil prices, and the Indonesian oil companies’ stock price period from January 2020 to June 2020 during the pandemic of COVID-19. Further, the data were analyzed by using a GARCH method to examine the effect of changes in oil prices for stock return and stock volatility. Also, the DCC-GARCH method was used to see the dynamic correlation between oil prices and the Indonesian oil companies’ stock price. The result showed that changes in oil prices have a significant effect on stock price volatility and the presence of a positive dynamic correlation between oil prices and the Indonesian oil companies’ stock price. This research can be used as a reference for investors for their investments by looking at the relationship between the oil price and The Indonesian oil companies’ stock price.

A Feasibility Study of SCADA Implementation at an Indonesian Oil Company

The implementation of Supervisory Control and Data Acquisition (SCADA) will make an activity more efficient because it will help control operation and production processes; control can be applied appropriately and at any time (real-time). This process will undoubtedly help the company to get maximum benefits. In 2020, the world oil price was very volatile and had touched a negative level. It is predicted that the uncertainty and low oil price will continue in the next few years. PT Pertamina Hulu Energi - Offshore South East Sumatra (PHE OSES), an Indonesian national company, plans to fully apply the SCADA system in its operational and production areas, because currently most of the PHE OSES areas still use the manual system. SCADA's estimated investment value of USD 8.6 million is a major investment for the company amidst the uncertainty of oil prices. Therefore, this project must get attention starting from the preparation, installation and implementation stages. In this article, economic analysis, cost & benefit analysis, and sensitivity test to factors that can affect economic value will be carried out. An analysis will also be carried out in terms of change management. All of these analyzes will answer whether the implementation of SCADA is feasible or not. The result of this research show that this project is feasible to be implemented in PHE OSES, it meets the capital budgeting criteria and has benefit to cost ratio larger than one. Oil price and oil losses recovery are the most affecting factors in the project’s feasibility. Company must do training, socialization, and hiring of experts play the vital role in the success of this project.

A Feasibility Study of SCADA Implementation at an Indonesian Oil Company

The implementation of Supervisory Control and Data Acquisition (SCADA) will make an activity more efficient because it will help control operation and production processes; control can be applied appropriately and at any time (real-time). This process will undoubtedly help the company to get maximum benefits. In 2020, the world oil price was very volatile and had touched a negative level. It is predicted that the uncertainty and low oil price will continue in the next few years. PT Pertamina Hulu Energi - Offshore South East Sumatra (PHE OSES), an Indonesian national company, plans to fully apply the SCADA system in its operational and production areas, because currently most of the PHE OSES areas still use the manual system. SCADA's estimated investment value of USD 8.6 million is a major investment for the company amidst the uncertainty of oil prices. Therefore, this project must get attention starting from the preparation, installation and implementation stages. In this article, economic analysis, cost & benefit analysis, and sensitivity test to factors that can affect economic value will be carried out. An analysis will also be carried out in terms of change management. All of these analyzes will answer whether the implementation of SCADA is feasible or not. The result of this research show that this project is feasible to be implemented in PHE OSES, it meets the capital budgeting criteria and has benefit to cost ratio larger than one. Oil price and oil losses recovery are the most affecting factors in the project’s feasibility. Company must do training, socialization, and hiring of experts play the vital role in the success of this project.