| Title | Utilization of Multi-Criteria Decision Analysis (MCDA) in Selecting Contract Types for Geothermal Exploration Drilling Project in Indonesia |
|---|---|
| Authors | Dorman PURBA, Daniel ADITYATAMA, Farhan MUHAMMAD, Agung MUKTI, Supriadinata MARZA, Mukhamad F. UMAM, Vicki AGUSTINO, Fikha FININDA |
| Year | 2020 |
| Conference | World Geothermal Congress |
| Keywords | geothermal, exploration, drilling, contract, procurement, strategy, decision-making, MCDA, Indonesia |
| Abstract | One of the important factors is achieving a successful drilling campaign is by having proper drilling contracts that is fitting with the current company’s organizational capability. This leads to the question on which type of contract is the best for a certain drilling project, especially in the exploration phase in Indonesia. This issue is currently on the rise in geothermal industry in Indonesia due to Government of Indonesia’s effort to achieve 7,200 MWe geothermal plant installed capacity in 2025. However, there is no absolute answer to that question as the decision making to choose the drilling contract type is usually involving more than one criteria. Therefore, it is necessary to use decision-maker’s preferences to differentiate between alternatives. Several drilling contract type for geothermal exploration project in Indonesia that is commonly known are discrete contract, integrated project management contract (IPM), and semi-IPM where usually the selection of contracts is primarily based on the organizational capability company has at the time. However, based on literature reviews, there are several other ways for drilling contract types that do not really fit into the three categories mentioned previously and might improve the drilling performance. This paper discusses the application of Multi-Criteria Decision Analysis (MCDA) in assisting the decision making process in drilling contract type selection. MCDA is considered as one of complex decision-making (DM) tool involving both quantitative and qualitative factors. It has been widely applied in various fields such as; energy and environment, business, economy and production. The study initiated by defining clear objectives of drilling contract. Several drilling contract scenarios or alternatives are then identified to be examined where most of scenarios are developed based on published literature related to case in Indonesia. Sensitivity analysis is conducted to test whether conclusions are sensitive to changes in the model. |