Oil and Gas Reserve Ppt

8/12/2019 Oil and Gas Reserve Ppt

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OIL AND GAS EXPLORATIONOIL AND GAS EXPLORATION

AND EXPLOITATION IN INDONESIAAND EXPLOITATION IN INDONESIA

Presented by:

SARYONO HADIWIDJOYO

Head of Exploitation

Presented by:Presented by:

SARYONO HADIWIDJOYOSARYONO HADIWIDJOYO

Head of ExploitationHead of Exploitation

DIRECTORATE GENERAL OF OIL AND GASMINISTRY OF ENERGY AND MINERAL RESOURCES

DIRECTORATE GENERAL OF OIL AND GASDIRECTORATE GENERAL OF OIL AND GAS

MINISTRY OF ENERGY AND MINERAL RESOURCESMINISTRY OF ENERGY AND MINERAL RESOURCES


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INTRODUCTIONINDONESIA ARCHIPELAGO

INTRODUCTIONINTRODUCTIONINDONESIA ARCHIPELAGOINDONESIA ARCHIPELAGO

Archipelago : 17,508 islands

Inhabited : 6,000 islands

Total Area : 741,096 sq mi

Land : 705,188 sq miWater : 45,907 sq mi

TOTAL POPULATIONS : 220 Million Peoples

PAPUA

NATUNA

JAVA

SUMATRA

KALIMANTAN

SULAWESI MALUKU

NUSA TENGGARA


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Comparative of Indonesia

Archipelago to USA

Comparative of Indonesia

Archipelago to USA

UNITED STATES OF AMERICAUNITED STATES OF AMERICA

INDONESIA ARCHIPELAGOINDONESIA ARCHIPELAGO


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GOVERNMENT'S VISION FOR OIL AND GAS SECTORGOVERNMENT'S VISION FOR OIL AND GAS SECTOR

The Government looks to the oil and gas sector to regain itsThe Government looks to the oil and gas sector to regain itsprominence in the world market and increase at contributions toprominence in the world market and increase at contributions to

national wealth and prosperitynational wealth and prosperity.

The Government expects that the upstream sector will increase itThe Government expects that the upstream sector will increase itssforeign currency earning that are essential to financing nationaforeign currency earning that are essential to financing nationall

development.development.

The Government sees and oil and gas industry that will make oilThe Government sees and oil and gas industry that will make oil andandgas products available throughout the country in the most efficigas products available throughout the country in the most efficient,ent,

competitive and beneficial manner, restoring financial viabilitycompetitive and beneficial manner, restoring financial viability to theto the

downstream and distribution activities. Many companies, bothdownstream and distribution activities. Many companies, bothIndonesian and foreign, will be active in all segments of the oiIndonesian and foreign, will be active in all segments of the oil and gasl and gas

industryindustry


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NEW OIL AND GAS LAW NO; 22/2001 (Stipulated on Nov, 23, 2001)

OIL AND GAS BUSINESS ACTIVITIES ARE DIVIDED INTO

UPSTREAM BUSINESS ACTIVITIES AND DOWNSTREAM BUSINESSACTIVITIES

THE EXECUTING BODY SHALL CONDUCT SUPERVISION ON THEIMPLEMENTATION OF UPSTREAM BUSINESS ACTIVITIES BASEON THE COOPERATION CONTRACT

THE REGULATING BODY SHALL CONDUCT SUPERVISION ONTHE IMPLEMENTATION OF DOWNSTREAM BUSINESSACTIVITIES BASE ON THE BUSINESS LICENSE

WITHIN A MAXIMUM PERIODE OF 1 YEAR THE EXECUTING

BODY AS WELL AS REGULATING BODY SHALL BE ESTABLISHED WITHIN A MAXIMUM PERIODE OF 2 YEARS PERTAMINA SHALL

BE TRANSFORMED INTO A STATE OWNED LIMITED LIABILITYCOMPANY


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Oil and Gas Business Activities in IndonesiaOil and Gas Business Activities in Indonesia

Upstream

Conducted by Business Entity or

Permanent Establishment based

on Cooperation Contract

Conducted by Business Entity or

Permanent Establishment based

on Cooperation Contract

a. Exploration

b. Exploitation

Downstream

d. Trading

c. Storageb. Transportation

a. Processing

Conducted by Business Entity

based on Business License

Conducted by Business Entity

based on Business License


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Structure of Management of

Oil and Gas Business Activities

Structure of Management of


Oil and Gas ResourcesControlled by The State


Managed by The Government

Development Supervision

Upstream Downstream

DOEMR/MIGASAnd

Other Dept.

ExecutingBody

(BP MIGAS)

RegulatoryBody

(BPH MIGAS)

DOEMR/MIGASAnd

Other Dept.


PerformingGovt. Affairs.

FormulatingGovt. Policies

DOEMR/MIGAS


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THE ROLE OF OIL AND GAS FOR INDONESIANTHE ROLE OF OIL AND GAS FOR INDONESIAN

DEVELOPMENTDEVELOPMENT

INDONESIAN DEVELOPMENTINDONESIAN DEVELOPMENT

SOURCES OF

ENERGY FORDOMESTIC

SOURCES OF

GOVERNMENTSINCOME

FEEDSTOCK

TO STRATEGIC

INDUSTRIES

OIL GAS

ENERGY SECTOR


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EXPLORATION AND EXPLOITATION

THE GOVERNMENT AS THE HOLDER OF THE MINING,CONTROLS THE OIL AND GAS RESOURCES

THE MINISTER SHALL DETERMINE THE BUSINESSENTITY/PERMANENT ESTABLISHMENT WHICH WILL BEGIVEN THE AUTHORITY TO CONDUCT THE EXPLORATIONAND PRODUCTION ACTIVITIES IN THE OPERATIONAL AREAS

THE GOVERNMENT AS THE HOLDER OF THE MININGAUTHORITY ESTABLISH THE EXECUTING BODY TOPERFORM THE MANAGEMENT OF THE UPSTREAM BUSINESSACTIVITIES

THE BUSINESS ENTITY OR PERMANENT ESTABLISHMENT

SHALL CONDUCT UPSTREAM BUSINESS ACTIVITIES BASEDON THE COOPERATION CONTRACT WITH THE EXECUTINGBODY

THE EXECUTING BODY SHALL APPOINT THE SELLER OF THE

STATES PORTION OF OIL AND/OR GAS WHICH WILL GIVETHE MAXIMUM BENEFIT FOR THE COUNTRY


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Tertiary Sedimentary Basins in IndonesiaTertiary Sedimentary Basins in Indonesia

-1

100 105 110 115 120 125 130 135 140

5

0

-5

Drilled basin, no discovery yet

Frontier Basin

Producing Basin

Drilled and proven

discovery, but not producing


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No Producing Yet (8)Producing (15)

No Discovery Yet (15)Discovery (23)

Drilled (38)Un-drilled (22)

Sedimentary Basins in Indonesia (60)


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Number of Contract Signed 1991 - 2001Number of Contract Signed 1991Number of Contract Signed 1991 -- 20012001

0

5

10

15

20

25

30

35

EOR TAC JOB/JOA PSC-EXT PSC-STD

PSC-STD 18 4 6 1 9 7 17 15 4 1 9

PSC-EXT 3 3 1 2 1 2 2

JOB/JOA 4 4

TAC 1 5 3 10 6 7 3 4 1

EOR 1 3 1

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001


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0 250

Kilometers

500

INDONESIA PETROLEUM WORKING AREA MAP

Status : July, 2002

2D S i i A ti it (th d k )


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2D Seismic Activity (thousands kms)

7,999.305,061.634,827.749,938.4223,260.58T o t a l

3,598.05255.232,428.701,758.973,507.14Onshore

4,401.254,806.402,399.048,179.4519,753.44Offshore

2002*)2001200019991998

0

5000

10000

15000

20000

25000

1998 1999 2000 2001 2002*)

offshore onshore total

3D S i i A ti it (th d k )


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3D Seismic Activity (thousands kms)

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

1998 1999 2000 2001 2002*)

offshore onshore total

2,498.227,767.534,441.193,317.808,996.37T o t a l

1,061.66656.53699.021,659.883,180.86

Onshore

1,436.567,111.803,742.171,657.925,815.51Offshore

2002*)2001200019991998


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EXPLORATORY WELLS STATISTIC

1997 - 2002

'97 '98 '99 '20 '01 '02

YEAR

0

2040

60

80

100

120

140

160

WELLS

0

10

20

30

40

50

60

SUCCESSRAT

IO

Discovery Dry Total Wells Success Ratio (%)

Discovery 46 75 50 54 56 37

Dry 54 70 39 38 39 38

Total Wells 100 145 89 92 87 75

Success Ratio (%) 46 52 56 54 52 46


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Exploration Drilling Activities

0

2040

60

80

100

120

140

160

1995 1996 1997 1998 1999 2000 2001 2002

OilGas

Dry

Total

RECOVERY FACTOR OF OIL AND GAS FIELDSRECOVERY FACTOR OF OIL AND GAS FIELDSRECOVERY FACTOR OF OIL AND GAS FIELDS


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RECOVERY FACTOR OF OIL AND GAS FIELDS

IN INDONESIA 2001

RECOVERY FACTOR OF OIL AND GAS FIELDSRECOVERY FACTOR OF OIL AND GAS FIELDS

IN INDONESIA 2001IN INDONESIA 2001

Areas Of Oil & Gas Field

31,8%

33,7%

35,1%

23,2%

34,4%

38,7%

29,1%

NORTH SUMATERA

CENTRAL SUMATERA

SOUTH SUMATERA

SOUTH SULAWESI

EAST KALIMANTAN

IRIAN JAYA

NATUNA

WEST JAVA

EAST JAWA

32,9%

53,6%

37,3%

21,9%

SOUTH KALIMANTAN

CENTRAL JAWA


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INDONESIA OIL RESERVES1990 2005

INDONESIA OIL RESERVESINDONESIA OIL RESERVES

19901990 20052005

0

2

4

6

8

10

12

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Proven

Potential

FORECASTACTUALBSTB

INDONESIA OIL RESERVES


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(Status 1STJanuary 2002)


(Status 1STJanuary 2002)

OIL RESERVES (MMSTB)

PROVEN = 5,096 MMSTB

POTENTIAL = 4,659 MMSTBTOTAL = 9,755 MMSTB

186.86

956.81

649.67

1,259.90

270.08

308.30

1,247.50

NORTH SUMATERA

CENTRAL SUMATERA

SOUTH SUMATERA

SOUTH SULAWESI

EAST KALIMANTAN

IRIAN JAYA

NATUNAACEH

WEST JAVA

EAST JAWA

136.01

111.86

10.207.47

MALUKU


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INDONESIA OIL AND CONDENSATE PRODUCTIONINDONESIA OIL AND CONDENSATE PRODUCTION19941994 20022002

0

500

1,000

1,500

2,000

Production 1,611.96 1,606.20 1,591.97 1,580.72 1,558.31 1,494.74 1,413.91 1,340.57 1,249.40

Oil 1,434.48 1,436.39 1,419.57 1,417.40 1,408.22 1,344.59 1,272.49 1,208.70 1,117.60

Condensate 177.480 169.820 172.390 162.780 150.090 150.15 141.41 131.41 131.80

1994 1995 1996 1997 1998 1999 2000 2001 2002

MBOPDMBOPD


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Production Versus Oil Consumption of

Indonesia

Production Versus Oil Consumption ofProduction Versus Oil Consumption of

IndonesiaIndonesia

0

200

400

600

800

1000

1200

1980 1985 1990 1995 2000 2005 2010 2015 2020

Pesimistic Production Optimistic Production Actual Production

Hight Consumption Actual Consumption

ACTUAL

OPTIMISTIC PRODUCTION

BASE PRODUCTION

PESIMISTIC PRODUCTION

CONSUMPTION

6%/YEAR

Million barrel

CONSUMPTION

3%/YEAR


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INDONESIA GAS RESERVES1971 - 2002

INDONESIA GAS RESERVESINDONESIA GAS RESERVES

19711971 -- 20022002

0

20

40

60

80

100

120

140

160

180

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2002

TSCFTSCF

ProvenProven

PotentialPotential


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INDONESIA GAS RESERVES(Status January 1st, 2002)

9.66

1.05

9.53

21.23

7.19 4.32

54.78

48.70

0.58

19.55

ACEH (NAD)

CENTRAL

SUMATERA

SOUTH

SUMATERA SOUTH

SULAWESI

PAPUA

GAS RESERVES (TSCF)

NATUNA

EAST JAVA

EAST

KALIMANTANNORTH

SUMATERA

WEST JAVA

PROVEN = 90.30 TSCF

POTENTIAL = 86.29 TSCF

TOTAL = 176.59 TSCF


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INDONESIA GAS PRODUCTION AND UTILIZATIONINDONESIA GAS PRODUCTION AND UTILIZATION19941994 20022002

0

2,000

4,000

6,000

8,000

10,000

Production 8,059.24 8,217.07 8,644.85 8,674.07 8,161.24 8,406.40 7,867.90 7,690.82 8,318.70

Utilization 7,561.85 7,778.33 8,174.25 8,151.19 7,630.45 7,939.10 7,502.56 7,188.88 7,890.02

Flare 497.39 438.73 470.61 522.88 530.79 455.05 364.80 501.80 424.50

1994 1995 1996 1997 1998 1999 2000 2001 2002

MMSCFDMMSCFD

INDONESIA NATURAL GAS PRODUCTION & UTILITIES


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INDONESIA NATURAL GAS PRODUCTION & UTILITIES

(Year 2002)

PROD.8.33 BSCFD

PSC

7.62 BSCFD

P

ertamina

0,7

1

BSCFD

57.3 %

42.7%Domestic

Export

MMSCFD (%)

FERTILIZER+PETROCHEMICAL 734.6 8.8

REFINERY 84.6 1.0

LPG/LEX PLANT 73.7 0.9 PGN 408.1 4.9

CEMENT 7.5 0.1

ELECTRICITY 547.3 6.6

KRAKATAU STEEL 82.6 1.0

OTHER INDUSTRIES *) 177.6 2.1

OWN USE 1,020.4 12.2

LOST/FLARING 424.5 5.1

T O T A L 3560.900 42.7

LNG 4,539.4 54.5

LPG 6.8 0.1

GAS 226.4 2.7 T O T A L 4,772.6 57.3

14-01-2002/gasut2001

PETROLEUM INCENTIVE PACKAGESPETROLEUM INCENTIVE PACKAGES


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PETROLEUM INCENTIVE PACKAGESPETROLEUM INCENTIVE PACKAGES

IN THE PSC THIRD GENERATIONIN THE PSC THIRD GENERATIONElement

First Incentive Package

(August, 1988)

Second Incencive Package

(February, 1989)

Third Incencive Package

(August, 1992)

Fourth Incentive Package (*)

(December, 1993)

Investment Credit Investment credit amounting17% of the capital investmentcost

For deep sea areas : 110% (oil)

over (600 ft) 55% (gas)

Development areas :

Pre -Tertiary reservoir rocks =110% for oil and gas

Water depth 200-1500 m =110% for oil and gas

Water depth below 1500 m =125% for oil and gas

No longer applied

Commerciallity Condition that the governmenthas to obtain as minimum of49% of the gross revenue no

valid anymore. The minimum

guarantee is 25% of the gross

revenue for the government.

Abolished Abolished Abolished

DMO Price 10% of export price after the first

years

No change 15% of export price after the first

five years

25% of export price after first five

years

First Tranche Petroleum 20% of production taken beforededuction of cost recovery &

will be split between government

and Contractor

No change No change 15% of production taken beforededuction of cost recovery and will be

split between government and

Contractor.

Split For Oil :Frontiers production :

< 50 MBOD=80% : 20%

50-150 MBOD=85% : 15%

> 150 MBOD = 90% : 10%Conventional area : 85% : 15%

For Gas :Frontier production : 70% : 30%Conventional area : 70% : 30%

For Oil :

Marginal fields and EOR in

Tertiary reservoir :

Conventional areas :

80%:20%

Frontier areas = 75%:25%Pre-Tertiary and deep sea (over600ft) production :

Incremental split as for frontierproduction in the first package.

For Gas: no change

For Oil :

Field developed in frontierareas = 80%:20%

Field developed in areas with

water depth > 1500 m =75%:25%

For Gas :

Field developed inconventional areas =65%:350%

Field developed in frontierareas = 60%:40%

Field developed in areas with

water depth > 1500 m =55%:45%

For Oil :65%:35%without investment credit.

For Gas :

60%:40%without investment credit.

*) For Eastern Indonesia areas and part

of Western Indonesia areas having

similar geological and geophysicalcondition.


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EXPLORATION AND PRODUCTION

EXPENDITURE1969 - 2001

EXPLORATION AND PRODUCTIONEXPLORATION AND PRODUCTION

EXPENDITUREEXPENDITURE19691969 -- 20012001CONTRACT SIGNEDCONTRACT SIGNED MILLION US$MILLION US$

0

5

10

15

20

25

30

35

69 71 73 75 77 79 81 83 85 87 89 91 93 95 97 99 1

0

1000

2000

3000

4000

5000

6000

Contract Signed Exploration & Development Total Expenditure

State Revenue From Oil & Gas


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State Revenue From Oil & Gas

( 1998 - 2002 )

0

10000

20000

30000

40000

50000

60000

70000

80000

1998/1999 1999/2000 2000 2001 2002

YEAR

OilandGasRevenue(BilionRp.)

0

5

10

15

20

25

30

35

40

45

ContributionofOil&GasRevenue(%

)

Crude Oil Natural Gas %

EFFORTS TO IMPROVE EXPLORATION AND


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EFFORTS TO IMPROVE EXPLORATION AND

EXPLOITATION ACTIVITIES

EXPLORATION

1. Restructure, in an integrated manner, the

management of oil and gas data

2. Maintain business contract terms that arealways competitive against other Asia-

Pacific countries.

3. Provide insentive to encourage spec

survey for the frontier basin

4. To increase supervision of exploration

activity


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EXPLOITATION

1. Issued Incentive Package.

2. Provide incentives for development ofmarginal oil and gas fields and also for

domestic gas utilization

3. To develop new field by reservoir

management application

4. To increase oil production by EOR

5. To develop old oil field6. To increase supervision of exploitation

activity


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THANK YOUTHANK YOU

Oil and Gas Reserve Ppt

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