ABSTRACT
The production activity of offshore oil and gas cannot be sustained without the vital role of the offshore workover rig barge that is used as a main tool in oil and gas well intervention operation activity. Rental cost of this equipment is considered to be one of the biggest cost components in every well intervention activity, which has an objective to maintain the company’s oil and gas production rate. Every effort to minimize the rental cost of workover rig barge operation will have a significant effect on the cost in every well intervention activity. The objective of this research is to optimize offshore workover rig barge operations in CNOOC SES Ltd. A mathematical model will be formulated prior to using the mixed-integer programming as the usage methodology. The decision variables’ values of the mathematical model are computed by Lingo 17.0 optimization software. The optimization process delivers a result of cost reduction for every well intervention, with an average cost reduction of 3.59%, or about US$8,518.
