il and Natural Gas in the future will still play

important role to support the continuity of

Indonesian development. It is as either one of
021319301089
prominent producers of state foreign exchange or
marketing@cdmione.com
supplier of domestic energy need to push economic
wheel.

The production of Indonesian oil from year to year has

declined. So, it requires efforts to seek for new oil
reserves because the potential of oil & natural gas
resources in Indonesia is still great to be developed
particularly in Indonesian Eastern area with old wells
which have yet to be explored intensively.
Indonesia with its great natural resources is viewed by
investors as a country for investment purpose
particularly oil & natural gas sector. It is seen from
rising number of domestic and foreign oil & natural gas
industries expanding their business vastly. They are
include:
* BP Plc, an oil and gas company based in London
preparing an investment of US$ 10 billion in
upcoming 10 years. The fund will be used to improve
the capacity of liquefied natural gas refinery in
Tangguh Papua Barat and coal bed methane
project in Kalimantan.
* Inpex Corporation, an oil and gas company of Japan
will prepare an investment of US$ 25 billion to
construct floating gas terminal in Abadi Block Masela,
Arafura Sea which will be commenced in 2012.
* Chevron Corp, an energy company of USA still
commits to continue and add its investment in
Indonesia through PT. Chevron Indonesia by
preparing an investment of US$ 3 billion up to 2013
which will be used to develop oil & natural gas
technology and to complete engineering and design
phase of LNG project in Gendalo-Gehem, Makassar
Straits.
* TOTAL, an oil company of France also keeps on
increasing its investment in Indonesia by expanding

its new exploration area. According to information of

CDMI that TOTAL will acquire shares of Talisman in
Blocks of Sageri PSC, South Sageri PSC and Sadang
PSC.
* MEDCO Energy Internasional Tbk will prepare a fund
of US$ 800 million to recover a number of old wells
in Block Rimau, South Sumatra by using surfactant
and polymer injection cars technology which aims to
smoothen reservoir in order to make oil coming out
smoothly.
* PERTAMINA prepares a fund of Rp. 37 trillion which
will be used to seek for new crude oil in a number of
regions in Indonesia, including acquisition of oil fields
which have already been available but their contract
ended. There are still many oil companies.
Viewing the enthusiasm of companies above, CDMI is
interested to perform a deeper study and finally
succeeded in publishing analysis output with the title of
Prospect and Market Opportunity of OIL &
NATURAL GAS in Indonesia, 2011 2016. This
book is very important for companies running this
business, investors entering this business, banking
parties financing this business and insurance party.
This book can be directly ordered to our marketing
division Mrs. Tina by phone (021) 3193 0108-09 or
Fax
(021)
3193
0102
and
e-mail:
marketing@cdmione.com at a price of US$ 550 for
Indonesian Edition and US$ 600 for English Edition.
Having submitted this offer, we thank you for your
cooperation and look forward to hearing your response
promptly.
Cordially yours,
P.T. C D M I
Muslim M. Amin

...........................................................................................................................................

our creative data for your partners

Phone:(021)31930108 9
Fax:(021)31930102
Email:marketing@cdmione.com
Website:www.cdmione.com

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Indonesianedition

Englishedition

Oil & Natural Gas, 2011-2016

LIST OF CONTENTS ..................................................................................................................... i

LIST OF TABLES...........................................................................................................................iv
1. INTRODUCTION .................................................................................................................... 1
1.1. Background........................................................................................................................ 1
1.2. Objective and Scope of Study.......................................................................................... 2
1.3. Methodology and Source of Information...................................................................... 3
2. ROLE OF INDONESIAN OIL & NATURAL GAS INDUSTRY..................................... 4
2.1. Oil & Gas Industry as Motor of Development ............................................................. 4
2.2. Oil & Gas Industry as Motor of Regional Growth ....................................................... 6
2.3. Contribution of Oil & Gas Towards GDP ..................................................................... 7
2.4. Oil & Gas Industry as Guarantor of Countrys Future ............................................... 8
3. INDONESIAN OIL AND NATURAL GAS RESOURCES ............................................ 10
3.1. Potential Tertiary Sediment Basin in Indonesia ......................................................... 10
3.2. Government Program to Improve Oil and Natural Gas Production ...................... 14
3.3. Contract of Indonesian Oil and Natural Gas Exploration ........................................ 16
3.4. Development of Oil and Natural Gas Exploration .................................................... 25
4. COMPLETENESS OF FACILITIES OF OIL & GAS INDUSTRIAL BUSINESS
ACTIVITY ................................................................................................................................ 27
4.1. Pertamina as Integrated Oil and Natural Gas Business............................................ 27
4.2. Changing of Pertamina Status into Persero ................................................................ 28
4.3. Distribution of Oil and Natural Gas Refinery ............................................................ 35
4.4. Completeness of Facility for Distributing Oil and Natural Gas .............................. 37
4.5. Utilization of Oil and Natural Gas Resources ............................................................ 39
5. PRODUCTION AND PROCESSING OF OIL AND NATURAL GAS ....................... 42
5.1. Contractor of Oil and Natural Gas ............................................................................... 42
5.2. Production of Oil and Natural Gas .............................................................................. 46
5.2.1. Production of Natural Oil.................................................................................. 46
5.2.2. Production of Natural Gas ................................................................................ 51
5.3. Processing of Oil and Natural Gas ............................................................................... 55
5.3.1. Processing of Natural Oil................................................................................... 55
5.3.2. Processing of Natural Gas ................................................................................. 58
6. MARKET AND MARKETING OF INDONESIAN OIL & GAS .................................. 60
6.1. Map of World Oil and Gas ............................................................................................ 60
6.1.1. Map of Word Oil ................................................................................................. 60
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Oil & Natural Gas, 2011-2016

6.1.1.1. Estimation of World Oil Reserve....................................................... 60

6.1.1.2. Oil Producing Countries..................................................................... 63
6.1.1.3. Oil Consuming Countries................................................................... 64
6.1.2. Map of World Gas .............................................................................................. 66
6.1.2.1. Estimation of Natural Gas Reserve ................................................... 66
6.1.2.2. Natural Gas Producing Countries..................................................... 66
6.1.2.3. Natural Gas Consuming Countries................................................... 69
6.2. Market of Indonesian Oil and Natural Gas ................................................................ 70
6.2.1. Market of Indonesian Natural Market............................................................. 70
6.2.1.1. Domestic Oil Market ........................................................................... 70
6.2.1.2. Natural Oil Export ............................................................................... 74
6.2.1.3. Natural Oil Import............................................................................... 77
6.2.2. Market of Indonesian Natural Gas................................................................... 79
6.2.2.1. Domestic Market of Natural Gas....................................................... 80
6.2.2.2. Development of Natural Gas Export ................................................ 80
6.2.2.3. Development of Natural Gas Import................................................ 85
7. ESTIMATION OF OIL & GAS SUPPLY AND DEMAND IN 2011 - 2016 .................. 87
7.1. Projection of Indonesian Oil & Gas Production ......................................................... 87
7.1.1. Projection of Indonesian Natural Gas Production ......................................... 87
7.1.2. Projection of Indonesian Natural Gas Production ......................................... 89
7.2. Projection of Oil and Natural Gas Consumption....................................................... 90
7.2.1. Projection of Natural Oil Consumption .......................................................... 90
7.2.2. Projection of Natural Gas Consumption ......................................................... 90
7.3. Projection of Indonesian Oil and Natural Gas Export............................................... 91
7.3.1. Projection of Natural Oil Export....................................................................... 91
7.3.2. Projection of Natural Gas Export...................................................................... 92
7.4. Projection of Indonesian Oil and Natural Gas Import .............................................. 95
7.4.1. Projection of Natural Oil Import ...................................................................... 95
7.4.2. Projection of Natural Gas Import ..................................................................... 95
8. INVESTMENT OPPORTUNITY OF INDONESIAN OIL AND GAS......................... 98
8.1. Potential of Indonesian Oil and Gas Resources ......................................................... 98
8.2. Support of Law................................................................................................................ 99
8.2.1. Promotion of Oil and Gas Investment ........................................................... 100
8.2.2. Offering of Working Area ............................................................................... 100
8.2.3. Oil and Gas Information Services................................................................... 101
8.2.4. Oil & Gas Permit and Recommendation Services........................................ 101
8.3. Scope of Oil & Gas Commodity.................................................................................. 105
8.4. Scope of Oil and Gas Industry .................................................................................... 107
8.5. Opportunity of Supporting Business Field ............................................................... 108

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Oil & Natural Gas, 2011-2016

9. PROFILE & FINANCIAL PERFORMANCE OF INDONESIAN OIL AND

NATURAL GAS COMPANY ............................................................................................. 111
9.1. P.T. PERTAMINA (Persero)........................................................................................ 111
9.2. P.T. PERUSAHAAN GAS NEGARA (PERSERO) Tbk. (PGN).............................. 115
9.3. P.T. ELNUSA Tbk. (ELSA) .......................................................................................... 120
9.4. P.T. MEDCO ENERGI INTERNATIONAL Tbk. (MEDC)...................................... 123
9.5. P.T. LEYAND INTERNATIONAL Tbk. (LAPD) ..................................................... 127
10. C O N C L U S I O N............................................................................................................. 130

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iii.