2nd Asia Pacific International Conference on Industrial Engineering and Operations Management

Decision-Making Process to Improve Efficiency and Effectiveness of The Remediation Planning and Implementation Process: a case study of an oil and gas company in Indonesia

Yorry Simanjuntak & Gatot Yudoko
Publisher: IEOM Society International
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Track: Case Studies
Abstract

The upstream oil and gas industry has an impact on the environment, especially the emergence of waste, both exploration and production waste. Crude oil spills occur at the earth's surface during the production process, transportation, and storage of oil. The waste, which is mostly in the form of oil sludge, includes waste of toxic and hazardous materials (B3). Oil contaminated soil (COCS) is harmful to human health, flora and fauna, therefore, one of the actual problems to normalize the functioning of biological and ecological systems in oil-producing areas is the remediation and efficient utilization of COCS. PT. XYZ has developed several strategies to accelerate the remediation process and meet the needs and timelines, including the calculation of land/area capacity to be increased in terms of capacity utilization and processing facilities. Bioremediation is a biological technique that uses natural microbes to help decompose hydrocarbon chains carried out by any oil and gas business and/or activity as well as other production activities, petroleum waste is needed to treat the waste. This research is intended to determine whether the area recovery process from COCS due to exploration and production activities at PT. XYZ has been carried out optimally and efficiently in accordance with the obligations and responsibilities to the Government of Indonesia.

There are various factors and ways to improve the efficiency and effectiveness of the planning and implementation process, some of which are process capacity utilization, volume allocation, schedule, resources and equipment that need to be elaborated to achieve the remediation target. PT. XYZ realizes that from the remediation process carried out in recent years, it appears that the alignment between COCS volume and processing capacity is a very important factor in synergies with the land acquisition process to carry out the maximum implementation process according to the target. All these variables need to be managed properly, otherwise, instead of supporting the implementation of the objectives, it can become an obstacle in the implementation of the remediation project. The author uses the Kepner-Tregoe Situation Analysis (SA) and Root Cause Analysis (RCA) methods and the approach uses the Kepner-Tregoe Potential Problem Analysis (PPA) and Decision Analysis (DA) to identify the source of the problem at PT XYZ. Problems have been identified through Root Cause Analysis, Cause-and-Effect Diagram and categorized into several important factors, namely process, people, planning and scheduling and regulation. Each factor is also analyzed to start planning solutions and solving problems. Three interrelated things are the status of the land or area to be improved, the time required for budget and plan approval, and the estimated COCS volume.

There are several issues that need to be further identified to improve the efficiency and effectiveness of the remediation process. The problem then goes through a situation analysis process, classified into several process analysis approaches, namely problem analysis, decision analysis and analysis of potential problems. From the situation analysis assessment, there is one thing that needs to be studied further through a problem analysis approach. The process will identify resource problems (manpower and equipment) and how to optimize resources to support the site implementation process. 2 (two) factors that are closely related in determining the plan to clean up oil contaminated soil, namely the status of the land or area to be repaired and the estimated volume of COCS. Identification of land status will determine the volume of COCS to be repaired. Meanwhile, analysis of potential problems will identify the time required for budgeting, plan approval and process execution, limited processing capacity and high repair costs.

All factors that affect the planning and implementation process, including human resources, infrastructure or equipment and other factors are to improve the accuracy of the plans made for the implementation process. To improve the efficiency and effectiveness of the implementation process, it is necessary to ensure the optimization of each stage of the remediation process. Each series of processes must synergize properly to ensure that the next process can be carried out correctly both in terms of cost, time and quality.

Published in: 2nd Asia Pacific International Conference on Industrial Engineering and Operations Management, Surakarta, Indonesia

Publisher: IEOM Society International
Date of Conference: September 13-16, 2021

ISBN: 978-1-7923-6129-6
ISSN/E-ISSN: 2169-8767