Implementation of Decision-Making Process Improvement in Oil and Gas Development by A Context-Based Capital Value Process

Abstract

Abstract The Capital Value Process is a typical business process in the oil and gas industry. Hierarchical and bureaucratic state-owned oil and gas companies make project development business processes take a long time. Long dynamic investment stages sometimes cause long-term oil and gas business development projects to be postponed, resulting in missed early production opportunities and higher capital expenditure. Existing decision-making processes may not consider oil and gas business development initiatives sufficiently, resulting in ambiguity and opposition to investment decisions. Previous research used a soft system methodology based on action research and system dynamics with contextual-based capital value process results. The suggested conceptual model is designed to improve the decision-making process for upstream business development in state-owned enterprises (SOE). This study will look at the actual decision-making performance compared to the results of previous dynamic modeling simulations. The important conclusion drawn from these results is that delegation of threshold in decision-making at every level improves managerial decision-making.