Decision analysis of ANH gas field development by using value focused thinking & analytic hierarchy process

Published: Aug 1, 2024

Abstract:

Purpose: The purpose of this study is to obtain the best gas field development scenario based on company values.

Research Methodology: This research used qualitative methods obtained from interviews, questionnaires, and discussions. The data obtained were analyzed by researchers with a focus on the content and the relationship between one content and another. This method is used in the value-focused thinking process to determine goals, criteria, and alternative solutions. In addition to qualitative methods, quantitative analysis was performed using the Analytic Hierarchy Process method. This method is used to determine the ranking of project selection criteria and sub-criteria and to determine the best field development scenario.

Results: The Project Profitability criterion has the largest weight score of 0.529, while the most important sub-criteria are the Profitability Index (PI) ratio and Net Present Value (NPV), with global weight scores of 0.266 and 0.263, respectively. The selected solution based on the analysis was scenario two with a weight score of 0.477 and an inconsistency value of 0.05. The scope of work for this scenario is drilling nine wells, building a pipeline, and installing a compressor, which is divided into two stages, starting with the MP-HP compressor and the LP-MP compressor.

Limitations: The values of reserves, production, and economic data were slightly modified due to company policies but did not change the qualitative nature of the data. An interview, Focused Group Discussion, and pairwise comparison questionnaire were distributed to Subject Matter Experts who are knowledgeable and involved in decision making in the company. The implementation plan was designed from the technical planning division perspective.

Contribution: This research provides a reference for companies who want to know how to make the right decisions according to company values, particularly in the upstream oil and gas industry.

Keywords:
1. Value Focused Thinking
2. Analytic Hierarchy Process
3. Gas Field
Authors:
1 . Adolf S. P. Manurung
2 . Utomo Sarjono Putro
How to Cite
Manurung, A. S. P., & Putro, U. S. (2024). Decision analysis of ANH gas field development by using value focused thinking & analytic hierarchy process. Journal of Multidisciplinary Academic Business Studies, 1(4), 819–836. https://doi.org/10.35912/jomabs.v1i4.2271

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References

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    Selart, M., & Johansen, S. T. (2011). Understanding the role of value?focused thinking in idea management. Creativity and innovation management, 20(3), 196-206.

    Winowoda, B., & Wasesa, M. (2024). VFT and AHP Approach to Selecting the Best Option in Decision-Making at PLN: A Case Study in the Cawang-Gandul Project. European Journal of Business and Management Research, 9(2), 119-133.

  1. Balusa, B. C., & Gorai, A. K. (2019). Sensitivity analysis of fuzzy-analytic hierarchical process (FAHP) decision-making model in selection of underground metal mining method. Journal of Sustainable Mining, 18(1), 8-17.
  2. Borodako, K., Berbeka, J., Rudnicki, M., & ?apczy?ski, M. (2019). The contribution of human capital to the performance of Knowledge-Intensive Business Services. Annals of Management and Organization Research, 1(2), 141-153.
  3. Goodwin, P., & Wright, G. (2014). Decision analysis for management judgment: John Wiley & Sons.
  4. Gurl, E. (2017). SWOT analysis: A theoretical review.
  5. Keeney, R. L., & Keeney, R. L. (2009). Value-focused thinking: A path to creative decisionmaking: Harvard University Press.
  6. Kepner, C. H., & Tregoe, B. B. (1997). The New Rational Manager: An Updated Edition for a New World: Princeton Research Press.
  7. Mappadang, A., Wijaya, A. M., & Mappadang, L. J. (2021). Financial performance, company size on the timeliness of financial reporting. Annals of Management and Organization Research, 2(4), 225-235.
  8. Olayinka, A. A., & Mustapha, S. (2022). Analysing financial performance of listed cement industries in Nigeria: Financial Ratio Approach. Annals of Management and Organization Research, 3(4), 231-244.
  9. Saaty, T. L. (2008). Decision making with the analytic hierarchy process. International journal of services sciences, 1(1), 83-98.
  10. Salman, I. N. (2024). Analysis of acceptance and use of the agree mart mobile groceries marketplace application using the UTAUT-3 Model in Indonesia. Journal of Multidisciplinary Academic Business Studies, 1(2), 217-239.
  11. Selart, M., & Johansen, S. T. (2011). Understanding the role of value?focused thinking in idea management. Creativity and innovation management, 20(3), 196-206.
  12. Winowoda, B., & Wasesa, M. (2024). VFT and AHP Approach to Selecting the Best Option in Decision-Making at PLN: A Case Study in the Cawang-Gandul Project. European Journal of Business and Management Research, 9(2), 119-133.