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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 Business Activities
Oil and Gas ResourcesControlled by The State
Oil and Gas Business Activities
Managed by The Government
Development Supervision
Upstream Downstream
DOEMR/MIGASAnd
Other Dept.
ExecutingBody
(BP MIGAS)
RegulatoryBody
(BPH MIGAS)
DOEMR/MIGASAnd
Other Dept.
Oil and Gas Business Activities
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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INDONESIA OIL RESERVES
(Status 1STJanuary 2002)
INDONESIA OIL RESERVES
(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
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