The exploration and production of natural resources within the energy sector under the production sharing contract (PSC) necessitate effective logistic operations, where vehicle acquisition plays a pivotal role. This abstract delves into the strategic consideration surrounding vehicle acquisition for PSC contractors during the exploration period, specifically examining the choice between renting, and buying vehicles. Cost recovery is an important element in decision-making.
The decision between renting and buying vehicles is a critical strategic choice for contractors operating during the exploration period. The multifaced considerations that influence the decision-making process, encompass financial analysis, operational flexibility, risk management, and environmental sustainability. Methods approach is adopted integrating descriptive qualitative, incorporating a strategic analysis utilizing SWOT and cost-benefit analysis. Moreover, the study considers non-monetary considerations by aligning its analysis with the sustainable development goals, highlighting the project's potential impact beyond financial metrics.
In PSC contract most PSC contractors in Indonesia will choose renting a vehicle as strategy of vehicle acquisition seen from many aspects, especially cost and contract period.