Why Adopt a Standardized 3D Work Breakdown Structure for Tangible Drilling Cost in Indonesia?


By Gideon Wibowo

Jakarta, Indonesia


This paper offers a solution to create a reliable database of drilling activity by standardizing the Work Breakdown Structure (WBS) through Budget Schedule (BS) 19 and BS 20 that are submitted to Indonesian Government Agency by the Production Sharing Contract (PSC) Contractors.

By standardizing WBS, it can give some advantages to Indonesian Government Agency i.e. provide reports on the use of materials and costs consistently and in a standard format, provide the material needs and the cost of a project, and develop a database for consolidate data to determine where the variances that exist between functional areas, project areas and projects during a specific time period. The database will provide an insight to how an improvement will be made ​​to the need of material and the cost of drilling and workover project in the future.

Standardization of WBS models designed should also be multi-dimensional, because the ability of three-dimensional model allows stakeholders to view the data from three different perspectives.

  1. Introduction

Indonesian Government Agency (henceforth called “IGA”) has responsible to supervise and control the activities of upstream oil and gas under the Production Sharing Contract (PSC). In supervising and controlling the activities of the upstream oil and gas, IGA will evaluate and approve the Authorization for Expenditure (AFE) and close out AFE proposed by the PSC Contractors. AFE system is designed to provide the information necessary to analyze, evaluate, approve and monitor the project expenditure by PSC Contractors. AFE proposals are submitted in the form of a document package where AFE Budget Schedule (BS) is part of the AFE package document.


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About the Author

pmwj29-Dec2014-Wibowo-AUTHORGideon Wibowoflag-indonesia

Jakarta, Indonesia

Gideon Wibowo currently works at SKK Migas as a Cost Engineer on the upstream oil and gas business unit for evaluating and controlling capital project (Capex) and operating expense (Opex) for Oil & Gas Production Sharing Contractors as per PSC Agreement. He has five years of professional experience in electrical and instrumentation in offshore construction (supervising construction and mechanical completion) as E&I Construction Engineer for five EPCI projects and over two years of professional experience in electrical and instrumentation in mining operation/ maintenance as E&I Maintenance Engineer. Gideon has a Bachelor’s degree in Electrical Engineering, Sub Option Instrumentation and Control, from the Universitas Gadjah Mada (UGM). He holds international credential from AACEI as a Certified Cost Professional (CCP). Gideon can be contacted at [email protected].