DETERMINE THE EVALUATION RUBRIC WEIGHTS USING THE ANALYTICAL HIERARCHY PROCESS METHOD FOR OIL AND GAS COMPANY STRATEGIC PROJECT

Abstract

This study establishes a comprehensive framework to evaluate the feasibility of logistics projects in the oil and gas industry. It focuses on developing and weighting key decision-making criteria using the Analytic Hierarchy Process (AHP) method. The five main criteria considered are: Safety & Asset Integrity, Net Present Value (NPV) Efficiency, Operational Supply, Operational Distribution, and Terminal & New Business Flexibility. Data were obtained through expert questionnaires, and responses were processed using the geometric mean method. The resulting pairwise comparison matrices were tested for consistency using the maximum eigenvalue (λ_max), Consistency Index (CI), and Consistency Ratio (CR); only matrices with CR values below 0.1 were accepted. The analysis showed that “Safety & Asset Integrity” was the most significant criterion with a weight of 38%, followed by “NPV Efficiency” at 22%. Sub-criteria such as “Safety” (35%) and “Supply Options” (42%) were also highly prioritized. The final weights were validated through expert review to ensure alignment with actual logistics needs. This structured evaluation model supports balanced, multi-perspective decision-making. Ultimately, the study provides a robust rubric for evaluating strategic logistics projects, allowing decision-makers to assess feasibility more objectively, beyond financial performance alone, and incorporating operational, safety, and future development factors.