pushed down LNG demand around the world and means that Indonesia, which is behind Qatar

and Malaysia as an exporter, should have more available to supply, particularly with the
Tangguh project coming on stream.

In the past, Jakarta has sometimes failed to meet its contractual commitments to traditional
markets such as Japan, South Korea and Taiwan, often agreed more than a decade ago, as it has
sought to switch more supply to the domestic market.

Here is an outline of Indonesia's LNG industry and upcoming gas projects:

Existing plants:

BONTANG - LNG production began at the Bontang plant in East Kalimantan in 1977. Bontang,
one of the largest plants in the world, has 8 trains and a capacity of 22 million tonnes a year
(tpy), but output has declined due to a lack of available natural gas. Vico Indonesia, jointly
owned by BP, Italy's Eni , Chevron and Total, supplies gas to Bontang. The plant is expected to
produce about 17.2 million tonnes in 2009, down from 17.7 million in 2008.

ARUN - Indonesia also launched LNG production at its Arun complex in Aceh province in 1977,
with 6 trains and a capacity of around 12 million tpy. Since 2000, LNG production at Arun has
fallen as natural gas supplied by Exxon Mobil declines. Arun is expected to produce 2.3 million
tonnes of LNG in 2009, about the same in 2008.

TANGGUH - The BP-led project is the country's third LNG centre with a capacity to produce
7.6 million tpy through 2 trains. Tangguh has several foreign supply contracts, including a 2.6
million tpy contract with China National Offshore Oil Corp (CNOOC). U.S. firm Sempra Energy
also has a 20-year contract to lift 3.6 million tpy with the right to divert half to customers other
than its own terminal in Mexico. There are also supply contracts with South Korean firms K-
Power and POSCO.

Planned projects:

KUTAI BASIN - Chevron Corp is due to decide whether to move to final design on the Kutai
Basin natural gas project off East Kalimantan by the end of 2009 and a final investment decision
is likely in 2011. The Makassar Strait project would have the deepest offshore gas fields in
Indonesia, at depths ranging from 2,500 to 6,000 feet (760-1,800 metres). Chevron had said it
plans an investment of about $6 billion in the fields, which have combined natural gas reserves
estimated at over 3 trillion cubic feet (tcf). Indonesia's energy minister said the project had
agreed to supply up to 25 percent of gas to domestic users, which could provide 0.7-0.8 million
tonnes of LNG a year. Some of the gas from Kutai will also be supplied to Bontang.

MASELA - Indonesia is considering building an onshore LNG plant for natural gas reserves
from the Timor Sea, energy minister Purnomo Yusgiantoro said. Japan's Inpex Corp, which is
the operator of the Abadi field in the Masela block, had earlier proposed building a floating LNG
plant, which the oil watchdog had estimated would cost $19.6 billion. The field is estimated to
have more than 10 trillion cubic feet of natural gas reserves and is expected to be on stream in
2016.

NATUNA D-ALPHA - Indonesia's state energy firm Pertamina expects the Natuna Sea natural
gas project to come onstream in the next 8-9 years. The Natuna D-Alpha block, which has about
222 trillion cubic feet (tcf) of gas reserves and will require about $40 billion investment, is the
subject of a dispute between Exxon Mobil and the government. Indonesia said last year it had
awarded Pertamina the operating right, but Exxon has said its contract is valid until 2009.
Pertamina does not have the technical expertise or financing to develop the project alone and has
named eight firms -- Petronas, Exxon Mobil, Chevron, Total, Royal Dutch Shell, StatoilHydro,
Eni and China National Petroleum Corp -- as potential partners.

DONGGI-SENORO - Pertamina, Indonesian energy firm Medco and Japan's Mitsubishi Corp.
have agreed to build the $1.4 billion Donggi-Senoro LNG plant in Sulawesi, with a capacity of 2
million tonnes per year. It will receive natural gas supplies from Pertamina and Medco. The
government, Pertamina and Medco are still in negotiations reviewing the natural gas price to the
plant, which is expected to be operational in 2012 or 2013. http://www.xe.com/news/2009-07-
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