MINISTRY OF

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MINISTRY OF ENERGY AND MINERAL RESOURCES

DIRECTORATE GENERAL OF OIL & GAS

POLICY AND OPPORTUNITIES IN INDONESIA OIL & GAS INDUSTRY

by :

A. Edy Hermantoro DIRECTOR OF UPSTREAM BUSINESS DEVELOPMETN

Jakarta, April 29th, 2010

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OUTLINE
OIL & GAS POLICY AND TARGETS IN 2025 OIL & GAS CONDITION IN INDONESIA DEVELOPMENT PLAN ON INFRASTRUCTURE IN THE YEAR 2010-2014 BUSINESS OPPORTUNITIES

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OIL & GAS POLICY AND TARGETS IN 2025

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POLICY AND TARGETS OF INDONESIA OIL & GAS MANAGEMENT

PETROLEUM POLICY

Oil and Gas Supply Security Oil And Gas Utilization Oil and Gas Pricing Policy Unconventional Oil and Gas Business Conservation Of Oil and Gas Production Increasing National Capacity In Oil And Gas Industry

TARGETS FOR 2025

Maintain oil production level of 1 Million BOPD 50% national operatorship Security of domestic fuel supply and industrial feedstock 91% local content (goods and services) 99% skilled national workforce Achieving oil and gas safety, zero accidents, zero failure, and achievement of zero flares, and zero waste
4

FUEL POLICY

Feedstock & Fuel Supply Security Fuel Categorization Pricing Policy Fuel Diversification Fuel Standard and Quality Fuel Efficiency

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OIL & GAS CONDITION IN INDONESIA

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GAS RESERVE
(AS OF JANUARY 1st 2009)

ACEH NAD (NAD)

5.55
NATUNA

1.26
NORTH SUMATERA

52.14
EAST KALIMANTAN

10.57
CENTRAL SUMATERA

21.78
PAPUA

2.68 17.74
SOUTH SUMATERA WEST JAVA SULAWESI MALUKU EAST JAVA

23.71

3.68

15.22
6.30

5.30

GAS RESERVES (TSCF)

PROVEN TOTAL

= 107.34 TSCF 52.29 TSCF = 159.63 TSCF

POTENTIAL =

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INDONESIAN CBM BASIN

Total CBM Basin = 11

(Advance Resources International, Inc., 2003)

Signed contract up to the end of 2009: 20 CBM PSCs

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INFRASTRUCTURE DEVELOPMENT PLAN

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NEW OIL REFINERIES DEVELOPMENT DEMAND

RECENT CONDITION Total Domestic Refineries Capacity Fuels Production Year 2008 Fuels Demand Year 2008 Fuels Deficit Year 2008

1400 1200 1000

800 600 400 200 0

: 1.156 MBSD; : 740 MBSD; : 1.100 MBSD; : 360 MBSD (33%).

M BSD

Domestic Capacity Demand

Production Deficit

OIL REFINERIES DEVELOPMENT DEMAND Needs to build 2 new oil refineries, with each capacity around 200 MBSD.

INFRASTRUCTURE DEVELOPMENT PLAN ON OIL REFINERIES IN THE YEAR 2010 - 2014

Year
2010
Oil Refineries BOPD Investasi (Juta US$)
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2011

2012

2013

2014

Total 350.800 6.520

9

800 20

- 200.000 150.000 2.500 4.000

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INFRASTRUCTURE DEVELOPMENT PLAN ON NATURAL GAS IN THE YEAR 2010 - 2014

Year
MMSCFD Investment
(Million US$ Dollar)

Num

Explanation
Gas Production Facility (upstream) Coal Bed Methane (CBM) Production Facility LNG Refinery

1.

2010 1.020 2.415 1 5 16.000 20 200 -

2011 1.375 2.415 8 50 400 500 16.000 20 420 220

2012 1.900 3.220 12 100 16.000 20 230 230

2013 13.456 3.220 25 150 250 2.200 500 400 16.000 20 275 275

2014 2.510 4.830 40 200 16.000 20 250 250

Total

20.261 16.100 85 505 250 2.200 900 900 80.000 100 975 975

2.

MMSCFD Investment
(Million US$ Dollar)

3.

MMSCFD Investment
(Million US$ Dollar)

4.

LNG Receiving Terminal City gas pipe network*) Transmission network

MMSCFD Investment
(Million US$ Dollar) House connection

5.

Investment
(Million US$ Dollar)

6.

Km
Investment
(Million US$ Dollar)

*) Funding from State Budget of Revenues and Expenditures (APBN) DJMIGAS 070410

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GAS RESERVE LOCATION AND INFRASTRUCTURE

THAILAND LAOS

NAD Bangkok
Ban Mabtapud

Manila

LNG Receiving Terminal

CAMBODIA

Philipines
VIETNAM

Phnom Penh

South China Sea

Existing Pipeline Planned Pipeline CNG Plant LNG Plant

Ho Chi Minh City

Khanon Songkhla

Erawan Bangkot Lawit Jerneh Guntong

ACEH (NAD) 5.55

Banda Aceh Lhokseumawe

Penang WEST Kerteh Duyong Mogpu MALAYSIA

NORTH SUMATERA 1.26

Medan

Natuna West NATUNA Natuna

Singapore Gas Trunkline

Alpha

BRUNEI

Kota Kinibalu

Reserves P1 + P2 +P3 (TSCF)

Port Klang

Kuala Lumpur

52.14

Bandara Seri Begawan

Bintulu

EAST KALIMANTAN 21.78 28.490

Manado Ternate
Bontang LNG Plant & Export Terminal

Port Dickson Dumai

EAST MALAYSIA
Kuching

PAPUA
HALMAHERA

Pacific Ocean

SINGAPORE
Bintan

23.71 18.508

Batam CENTRALDuri SUMETERA Padang

10.57

KALIMANTAN Samarinda
Balikpapan

Attaka Tunu Bekapai

SULAWESI

SOUTH SUMATERA Grissik Palembang

S U M

4.405 2.68
SULAWESI

Sorong Jayapura

4.960 17.74
Ardjuna Fields Cirebon Semarang Ujung Pandang

A T R A
Jambi

Banjarmasin

BURU

SERAM

IRIAN JAYA

WEST JAVA Jakarta 3.68 5.819

MADURA
Bangkalan Surabaya

JAVA

I Pagerungan N D O N E S I A
SUMBAWA
LOMBOK TIMOR

EAST JAWA

FLORES

MALUKU 15.22 4.660 Maluku Selatan

Merauke

BALI

Indian Ocean 3.202 5.30

SUMBA

AUSTRALIA

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INDONESIA LNG PLANT AND TERMINAL REGASIFICATION

Arun (LNG Plant) Start up Gas Producer Capacity : 1973, 1983, 1986 : ExxonMobil : 6.8 mtpa (6 trains) Start up Gas Producer Capacity Bontang A-H (LNG Plant) : 1977, 83, 89, 93, 97, 99 : Total, VICO, Unocal : 22.59 mtpa (8 trains) Start up Gas Producer Capacity DonggiSenoro (LNG Plant-planned) : 2011 : Medco and Pertamina : 2 mtpa (1 train)

Tangguh (LNG plant) Start up Operator Gas Producer Capacity : 2009 : BP Indonesia : CNOOC BP Nippon MI Berau BV KG : 7.6 mtpa (2 trains)

Future LNG Terminal Regasification Capacity = 150 MMSCFD

LNG Plant

LNG Terminal
Future LNG Terminal Regasification Capacity = 400 MMSCFD Future LNG Terminal Regasification Capacity = 300 MMSCFD

Masela (LNG Plant-planned) Start up Gas Producer Capacity : 2016 : Inpex : 4 mtpa

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LPG REFINERIES IN INDONESIA

SOUTH CHINA SEA
CHEVRON PT. MARUTA BUMI PRIMA
LANGKAT CAPACITY : 17 MTPA TJ. SANTAN CAPACITY : 90 MMTPA

PASIFIC OCEAN

CONOCO PHILLIPS
BELANAK CAPACITY : 420 MTPA

PT. PERTAMINA (PERSERO)

UP VII BALIKPAPAN CAPACITY : 204 MTPA

PETROCHINA
ARAR CAPACITY : 14 MTPA

PETROCHINA
TJ. JABUNG CAPACITY : 500 MTPA

PT. PERTAMINA (PERSERO)

UP II DUMAI CAPACITY : 140 MTPA

PT. MEDCO LPG KAJI

KAJI CAPACITY : 72 MTPA

PT. PERTAMINA (PERSERO)

UP III MUSI CAPACITY : 55 MTPA

PT. TITS SAMPURNA

PRABUMULIH CAPACITY : 72 MTPA

PT. SURYA ESA PERKASA

LEMBAK CAPACITY : 45 MTPA

PT. PERTAMINA (PERSERO)

UP VI BALONGAN DAN MUNDU CAPACITY : 396 MTPA + 35 MTPA

PT. PERTAMINA (PERSERO)

UP IV CILACAP CAPACITY : 277 MTPA

PT. SUMBER DAYA KELOLA

TUGU BARAT CAPACITY : 7 MTPA

PT. ODIRA ENERGY PERSADA

TAMBUN CAPACITY : 54 MTPA

LPG PLANT (TOTAL CAPACITY: 2,40 MMTPA)

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BUSINESS OPPORTUNITIES

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OIL AND GAS INVESTMENT

(TARGET Vs REALIZATION)

TARGET UPSTREAM DOWNSTREAM REALIZATION UPSTREAM DOWNSTREAM

2006 9.746,23 8.983,70 762,53 9.662,56 8.523,90 1.138,66

2007
10.798,01 10.228,68 569,33

11.179,66 10.737 442,66

2008 14.786,50 13.572,87 1.285,55 13.524,97 12.096,00 1.428,97

2009 13.778,21 13.166,21 612,00 12.184,82 10.874,39 1310,43

2010 13.784,82 12.374,82 1.410,00 0 0 0

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TENTATIVE INDONESIA PETROLEUM BIDDING ROUND YEAR 2010

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OIL RESERVE
(AS OF JANUARY 1st 2009)

NAD

121.01
NORTH SUMATERA NATUNA

112.49

346.42

4,028.67
CENTRAL SUMATERA

BORNEO 745.11

PAPUA

89.64 43.11

902.42
SOUTH SUMATERA

51.95 CELEBES
MOLUCCAS

570.66
WEST JAVA

987.01
EAST JAVA

OIL RESERVES (MM STB) PROVEN POTENTIAL TOTAL = 4,303.10 MM STB = 3,695.39 MM STB = 7,998.49 MM STB = 7.9985 B STB
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BUSINESS OPPORTUNITIES

Upstream Exploration and exploitation in oil and gas fields; EOR and marginal field developments; LNG receiving terminal; LNG processing plants; Development of unconventional oil & gas. Downstream Refineries; LNG processing plants; LPG plants & storage; Oil and gas pipelines; Oil storage and transit terminals; Infrastructure for gas businesses; Biofuel development.
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www.migas.esdm.go.id
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