A System Dynamics Modelling for Converting Existing Tanker to FPSO

Floating, Production, Storage, and Offloading (FPSO) is an offshore installation that is used to process and store crude oil from wells and then transport it using tankers to oil refineries. One common scheme in the construction of an FPSO is by converting a tanker into FPSO. The project to convert a tanker to an FPSO requires a very well planning considering that this facility is a very important facility in the upstream oil and gas industry. This study aims to determine aspects that can reduce costs in the project of converting a tanker to FPSO. In this study, the variables that can influence the cost of conversion of a tanker into FPSO project are determined by approaching the principle of customer satisfaction, called Quality, Cost, and Delivery. The solution to the problem is carried out using a system dynamics model approach to determine the causality relationship between variables and its effect on the cost of conversion. The analysis is taken by sensitivity analysis and give the result of the biggest variables that lead in cost of conversion respectively are shipyard class, penalty during production, lead time, subcon factor, amount of worker, and the accuracy of pricing. The simulation model produced using system dynamics modelling is expected to be able to provide a solution to reduce the project cost of conversion a tanker to FPSO to support oil and gas exploitation activities in Indonesia.