IMPROVING WELL SITE PREPARATION PERFORMANCE TO BE ‘OTOBOS’ IN DRILLING ACTIVITIES TO INCREASE OIL & GAS PRODUCTION AT PHR ZONE 4 FINAL PROJECT In partial fulfilment of the requirements for the master’s degree from Institut Teknologi Bandung By DERI HARISMAN 29123058 (Master of Business Administration Program) INSTITUT TEKNOLOGI BANDUNG 2025 i ABSTRACT IMPROVING WELL SITE PREPARATION PERFORMANCE TO BE ‘OTOBOS’ IN DRILLING ACTIVITIES TO INCREASE OIL & GAS PRODUCTION AT PHR ZONE 4 By DERI HARISMAN 29123058 (Master of Business Administration Program) PHR Zone 4 is one of the backbones of oil and gas production, both for PHR (Pertamina Hulu Rokan) Region 1 Sumatra, PEP (Pertamina Exploration and Exploitation), and PHE (Pertamina Hulu Energi) as an Upstream Subholding. To maintain and increase oil and gas production in PHR Zone 4, a massive, aggressive drilling activity program is carried out. One of the important stages in drilling activities is the process of well site preparation that meets the criteria for drilling operations and health, safety, security, and environmental (HSSE) aspects. The right strategy is needed in the implementation of well site preparation works to keep pace with massively aggressive drilling activities in PHR Zone 4. This thesis aims to propose a strategy to improve well site preparation performance by looking for alternative priority strategies using the Multi-Criteria Decision Making (MCDM) approach. Alternatives are generated by applying value-focused thinking (VFT) to ensure a structured and objective decision-making process that prioritizes fundamental values and goals. Subject matter experts (SMEs) and decision-makers are engaged to identify key factors and gather ideas and opportunities. From the results of FVT, 3 (three) alternative strategies were obtained to improve well site preparation performance, namely, the Construction Strategy, Work Package Strategy, and Material Package Strategy. The AHP (Analytical Hierarchy Processes) method is applied to assess the alternatives based on criteria resulting from semi-structured interviews with decision-makers and FGDs with subject matter experts (SMEs). The criteria are revenue, timeliness, performance, and compliance. The analysis reveals that the Construction Strategy is an alternative strategy that must be prioritized. Keywords: Well Site Preparation, Multi-Criteria Decision Making, and Analytical Hierarchy Process ii iii ABSTRAK MENINGKATKAN KINERJA PENYIAPAN L OKASI PEMBORAN MENJADI ‘OTOBOS’ DALAM KEGIATAN PEMBORAN UNTUK MENINGKATKAN PRODUKSI MIGAS DI PHR ZONA 4 Oleh Deri Harisman 29123058 (Program Studi Magister Administrasi Bisnis) PHR Zona 4 merupakan salah satu tulang punggung produksi minyak dan gas bumi, baik untuk PT PHR (Pertamina Hulu Rokan) Regional 1 Sumatra, PEP (Pertamina Eskplorasi dan Eksploitasi), maupun PHE (Pertamina Hulu Energi) sebagai Subholding Upstream. Untuk mempertahankan dan meningkatkan produksi minyak dan gas bumi di PHR Zona 4 dilakukan program kegiatan pemboran yang masif agresif. Salah satu tahapan penting dalam kegiatan pemboran adalah proses penyiapan lokasi pemboran yang memenuhi kriteria operasi pemboran dan aspek kesehatan, keselamatan, keamanan serta lingkungan (HSSE). Diperlukan strategi yang tepat dalam pelaksanaan pekerjaan penyiapan lokasi pemboran untuk mengimbangi kegiatan pemboran yang masif agresif di PHR Zona 4. Tesis ini bertujuan untuk mengusulkan strategi peningkatan kinerja penyiapan lokasi pemboran dengan mencari alternatif startegi prioritas menggunakan pendekatan Multi-Criteria Decision Making (MCDM). Alternatif dihasilkan dengan menerapkan Value-Focused Thinking (VFT) untuk memastikan proses pengambilan keputusan yang terstruktur dan obyektif yang mengutamakan nilai dan tujuan mendasar. Para ahli dan pengambil keputusan dilibatkan untuk mengidentifikasi faktor-faktor penting, mengumpulkan ide dan peluang. Dari hasil FVT didapatkan 3 (tiga) alternatif strategi untuk meningkatkan kinerja penyiapan lokasi pemboran yaitu, Strategi Konstruksi, Strategi Paket Pekerjaan dan Strategi Paket Material. Metode AHP (Analytical Hierarchy Prosess) diterapkan untuk menilai alternatif-alternatif tersebut berdasarkan kriteria yang dihasilkan dari wawancara semi-terstruktur dengan pengambil keputusan dan FGD dengan para ahli, kriteria tersebut adalah: Pendapatan, Ketepatan Waktu, Kinerja, dan Kepatuhan. Analisis mengungkapkan bahwa Strategi Konstruksi adalah alternative strategi yang harus diprioritaskan. Kata-kata kunci: Penyiapan Lokasi Pemboran, Multi-Criteria Decision Making, dan Analytical Hierarchy Prosess iv VIMPROVING WELL SITE PREPARATION PERFORMANCE TO BE ‘OTOBOS’ IN DRILLING ACTIVITIES TO INCREASE OIL & GAS PRODUCTION AT PHR ZONE 4 TION PAGE By Deri Harisman Student ID: 29123058 Master of Business Administration Program Institut Teknologi Bandung Approved Date 10 June 2025 Supervisor (Dr. Eng. Pri Hermawan, S.T, M.T) v DECLARATION OF NON-PLAGIARISM Plagiarism is: Taking, using, and submitting a work of another, including an idea, writing, or invention, as if it was her or his own. Plagiarism includes (but not limited to): 1. quoting verbatim the work of another without acknowledgement of the source; 2. paraphrasing the work of another without acknowledgement of the source; 3. using the idea of another without acknowledgement of the source; 4. submitting the work of another without identifying clearly who did the work; 5. colluding by submitting the work of another as her or his own with consent from the other. I understand that Plagiarism is wrong, a breach of academic integrity, and against Program, School, and University’s Policy and Regulation. I declare that all material in this Final Project is original, my own work, and does not involve plagiarism. I have not allowed, and will not allow, another to copy my work with the intention of submitting it as her or his own work. Name _________ Deri Harisman ________Student ID ________29123058________ Signed ________________________________________Date________14 May 2025 _______ vi FINAL PROJECT GUIDANCE Unpublished masters’ final project is registered and available in the Library of Bandung Institut of Technology, and is open for public, provided that the author owns the copyright in accordance with the intellectual property rights that are applicable in the Library of Institut Teknologi Bandung. Bibliographical references are allowed to be use in a limited manner, however the citation and summarization can only be proceeded upon the author’s permission and must include the scientific norm of stating this final project as the source. This final project has to be cited as: Harisman, D. (2025): Improve Well Site Proparation Performance to be ‘OTOBOS’ in Drilling Activities to Increace Oil & Gas Production at PHR Zona 4, Masters’ Final Project, Institut Teknologi Bandung. Reproduction or publication of parts or whole of the final project must be under the consent of the Head of Graduate School, Bandung Institute of Technology. vii DECLARATIONPAGE This final project is dedicated to my parents, wife, childrens, brother and sister, and my beloved family who always support me. viii ACKNOWLEDGEMENTS Bismillahirrahmanirrahiim… All praise belongs only to Allah SWT. Blessings and greetings always be overflowing to the Prophet Muhammad SAW, his family, friends, and all his followers until the end of time. Alhamdulillahirabbil'alamiin, it is a happiness that the author feels, with the permission of Allah SWT, to be able to complete this thesis as one of the requirements for graduating from a master's degree in the ITB School of Business and Management. At this good moment, the author would like to express gratitude and say thank you to all the parties that were involved in the preparation of this thesis, but not only limited to: 1. My parents, wife, children, brother and sister, and my beloved family, who always support me. 2. Dr. Eng. Pri Hermawan, S.T, M.T as the advisor in this thesis who gave guidance, suggestions, and support. 3. All lecturers and staff in MBA ITB who facilitate learning in the MBA program.