REPUBLIC OF INDONESIA

INDONESIA’S GAS DEVELOPMENT

PRESENTED BY:
DR. EVITA H. LEGOWO
DIRECTOR GENERAL OF OIL AND GAS

Jakarta, November 27 2012

MINISTRY OF ENERGY AND MINERAL RESOURCES

 AGENDA
I. SHIFTING PARADIGM WITHIN OIL & GAS SECTOR

II. INDONESIA NATURAL GAS RESOURCES & RESERVES

III. NATURAL GAS PRODUCTION

IV. OIL & GAS CHALLENGE

V. NATURAL GAS INFRASTRUCTURE (REGASIFICATION UNIT & SMALL SCALE LNG

PLANT)

VI. NATURAL GAS UTILIZATION

VII. OIL & GAS OPPORTUNITIES

 SHIFTING PARADIGM
WITHIN OIL & GAS SECTOR
 FROM REVENUE TO
ECONOMIC GROWTH MACHINE (FEEDSTOCK-FUEL)

ROLE OF OIL AND GAS INDUSTRIES

OIL AND GAS
INDUSTRY INDUSTRIAL
FEEDSTOCK

DOMESTIC
High Risk FUEL SUSTAINABLE
NATIONAL
SOURCE OF
High Cost STATE DEVELOPMENT
REVENUE

High Technology MULTYPLIER

EFFECTS
 FROM WEST TO EAST
More reserves found and exploration activities occureed
in the eastern part of Indonesia mainly deep water project

Discoveries in
Mostly Tertiery Jurrasic Plays
1998-2008

Western part
Eastern part

EASTERN INDONESIA CONTRACT SIGNED

10 9 9
8 Deep Water Area
6 5
4 3
2 2
2
0 0 Most of bidding acreage located in
eastern side of Indonesia
0
2003 2004 2005 2006 2007 2008 2009 2010

EASTERN INDONESIA CONTRACT SIGNED

barel oil equivalent
FROM OIL TO GAS
INDONESIA NATURAL GAS RESOURCES &
RESERVES
 INDONESIA NATURAL GAS RESOURCES AND RESERVES
ACEH (NAD)

5.56
NATUNA
NORTH SUMATRA

1.29 50.94
CENTRAL SUMATRA

9.01 17.36
PAPUA
EAST BORNEO
SOUTH SUMATRA
3.83
23.91
15.79 CELEBES

WEST JAVA

4.24
5.73 MOLUCCAS

EAST JAVA 15.22

(Advance Resources Interational, Inc., 2003 processed)

GAS RESERVES CBM RESOURCES = 453.30 TCF SHALE GAS POTENTIAL

PROVEN = 104.71 TSCF Total CBM Basin = 11
(Advance Resources Interational, Inc., 2003)
Government is currently doing
POTENTIAL = 48.18 TSCF preliminary study and collecting data
TOTAL = 152.89 TSCF about Shale Gas potential in
Contract Signed up to April 2012 :
(As of January 1st 2011)
50CBM PSCs Indonesia
NATURAL GAS PRODUCTION
 NATURAL GAS PRODUCTION
2007 – 2012

10,000

1,600
9,000

8,000 1,400

7,000 1,200

6,000
1,000
MMSCFD

MBOEPD
5,000
800

4,000
600
3,000

400
2,000

200
1,000

0 0
2007 2008 2009 2010 2011 2012*
Produksi (MMSCFD) 7,283 7,460 7,962 8,857 8,415 8,557
Produksi (MBOEPD) 1,256 1,286 1,373 1,527 1,451 1,475

*) Reconsiliation number until March 2012

 NATURAL GAS PRODUCTION PLAN
(MMSCFD)

JANGKRIK
128

KRUENG MANE
100
JAMBARAN, ALAS,
SUMPAL KEPODANG TUA TIUNG BIRU
74 116 200 TRAIN 3 DAN 4
SEBUKU TANGGUH
BUKIT TUA MASELA 870 EAST NATUNA
100 53 400 1000

2012 2013 2014 2015 2016 2017 2018 2019 2020

PECIKO BLOK A
170 109

GADJAH BARU HUSKY-MADURA

140 100

DONGGI-SENORO
TERANG SIRASUN
420
300
IDD CHEVRON
838
OIL & GAS CHALLENGE
 OIL AND GAS CHALLENGES

POLICY:
G
O  Balancing National and Investor’s Interests
C A  Increase of domestic Feedstock & Fuel demand
H L
 Domestic price vs economical value
A A
C
L CORE BUSINESS:
L GENERAL OIL AND GAS CHALLENGES
H
I


Natural Decline
Length of time from the exploration phase to production phase
E
E V
 Overlapping land
 Lack of Infrastructure (Refineries and Distribution)
N E  Limited Margin on Downstream Business
G M
GOOD ENGINEERING PRACTICES:
E
E N  Safety
S T  Environment
 Reservoir Management
 Community Development
 NATURAL GAS INFRASTRUCTURE
(REGASIFICATION UNIT & SMALL SCALE LNG PLANT)
 NATURAL GAS INFRASTRUCTURE
ARUN
6.8 MTPA Transmission
Transmission pipeline
Pipeline (exixting)
(Existing)
(6 trains) BONTANG
NATUNA Transmission pipeline (planning)
3
22.59 MTPA
In progress (8 trains)
LNG Receiving Terminal

Surplus
Surplus
TANGGUH Defisit
7,6 MTPA Defisit
(2 trains)

2
1 DONGGI-SENORO
LNG Plant-Planned

4
(2 MTPA/ 1 train)

MASELA
LNG Plant-Planned
(4.5 MTPA)

1 East Java FSRU

by Nusantara Regas 2 Lampung FSRU
by PGN
3 Arun Regasification
by Pertamina
4 Banten Regasification
by Private Company
capacity 3 MTPA Capacity 3 MTPA capacity 1,5 MTPA capacity 1,5 MTPA
 INFRASTRUCTURE OF SMALL SCALE LNG PLANT
Transmission pipeline (exixting)
Transmission pipeline (planning)

Simenggaris LNG Receiving Terminal

LNG Plant
Infrastructure+ Generator
Likupang
Bontang 3 MMSCFD CNG Plant
 Bontang (6 MMSCFD) Infrastructure+ Generator Halmahera
 Semberah (5 MMSCFD) (30 MMSCFD
Mini LNG (Salawati)
Infrastructure+Generator
Tanjung Batu(16 MMSCFD)
Infrastructure+Generator
Pomalaa (25 MMSCFD)
Infrastructure+Generatorit Sengkang
Batakan (2.5 MMSCFD)

Infrastructure+Generator
Maros (10 MMSCFD)

Infrastructure+Generator
Pesanggaran dan Gilimanuk
20+30 MMSCFD

Gas sources
Small Scale LNG Location
NATURAL GAS UTILIZATION
 INDONESIA LNG SALES CONTRACT
million ton
30

25

20

15

10

0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Jepang Korea Taiwan China US West Coast

 INDONESIA GAS BALANCE 2011-2025

Potential supply from

regasification terminal

CONTRACTED DEMAND POTENTIAL DEMAND

EXISTING SUPPLY PROJECT SUPPLY
POTENTIAL SUPPLY FROM UNDEVELOPED RESERVE POTENTIAL SUPPLY FROM REGASIFICATION TERMINAL
 INCREASED OF DOMESTIC GAS ALLOCATION

Declining in export, increasing utilization for domestic @ 24% per year Limited of
5 000
@2010 LNG Tangguh Full Production domestic
4 500
infrastructure

4 000

3 500

3 000 24%/year
BBTUD

2 500

2 000

1 500

1 000

500

-
2003 2004 2005 2006 2007 2008 2009 2010 2011

Ekspor
Export Domestik
Domestic
 NATURAL GAS ALLOCATION (2012)

City Gas Gas

Industry 0,07% Transportation
19,07% 0,06%

Export
43,19%

Electricity
18,02%

Oil Production
Fertilizer enhancement &
11,22% own use
8,37%
OIL & GAS OPPORTUNITIES
 BUSINESS OPPORTUNITIES
 Upstream
 Exploration and exploitation in oil and gas fields;
 EOR and marginal field developments;
 LNG receiving terminal;
 LNG processing plants (incld. Small Scale LNG Plant);
 Development of Unconventional Gas (CBM, Shale Gas, Tight Gas, & Biogenic Gas).

 Downstream
 Refineries;
 LNG Storage & Receiving Terminal;
 LPG Plants & Storage;
 Oil and gas pipelines;
 Oil storage and transit terminals;
 Infrastructure for gas businesses (including gas for transportation);
 Development of Coal Conversion to Fuel (Liquid or gas).
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