2. 1. OIL & GAS INDUSTRY HAS PLAYED A CRUCIAL ROLE IN THE
INDONESIA ECONOMIC DEVELOPMENT.
2. BY THE END OF 2012, THE INDUSTRY IS ACCOUNTED 1/4 OF
COUNTRIES GDP, (GREW 3-6 % ANNUAL RATE) 30 % OF
GOVERNMENT REVENUES (US$ 30-35 BILLION), AND ½ OF
MERCHANDIZED EXPORTS
3. INDONESIA IS RANKED HIGH IN THE SOUTH EAST ASIA REGION
FOR OIL AND GAS INVESTMENT AND 9TH MAJOR DESTINATION
FOR FOREIGN DIRECT INVESTMENT BECAUSE :
PROMISING PROSPECT (OIL : 7,408 MMSTB & GAS : 151 TCF)
INCREASING NEW PETROLEUM BLOCK (350 BLOCKS IN
OPERATION)
PROVIDING LARGE BENEFIT THROUGH PRODUCTION SHARING
CONTRACT SYSTEM
PROMOTING FAVORABLE INVESTMENT INCENTIVES
PRO MOTING EQUAL OPPORTUNITY FOR ANY PETROLEUM
INVESTMENT
INVESTMENT PROSPECTIVITY
3. 3
4692
1576
596
402
49
66
7
20
OIL & CONDENSATE (IN THOUSAND
MSTB)
P1 P2 P3 TOTAL
3.741 1.939 1.728 7.408
*) P1+P2+P3 Status as of 1 Januari 2012
Opportunities
Indonesia’s Oil and Condensate Reserves *)
INDONESIA OIL & CONDENSATE RESERVES
4. 4
2.57
9.28
2.98
50.27
24.14
NATUNA
7.08
NORTH SUMATRA
15.21
16.03
CENTRAL SUMATRA
ACEH (NAD)
SOUTH SUMATRA
WEST JAVA
5.26
EAST JAVA
EAST BORNEO
CELEBES
MOLUCCAS
PAPUA
(Advance Resources Interational, Inc., 2003 processed)
PROVEN = 103.35 TSCF
POTENTIAL = 47.35 TSCF
TOTAL = 150.70 TSCF
CBM RESOURCES = 453.30 TCFGAS RESERVES
(As of January 1st 2012)
Total CBM Basin = 11
(Advance Resources International, Inc., 2003)
Contract Signed up to 2012 : 54
CBM PSCs
SHALE GAS POTENTIAL
1.23
16.65
The Government is
currently doing prelimi nary
study & collecting data
about Shale Gas potential in
Indonesia
INDONESIA GAS RESOURCES & RESERVES
5. With the sharply increase of fuel demand and energy security the GOI needs to find
more proven resources & maintain stable existing oil & gas production. THEREFORE,
THE GOI IS INVITE NEW INVESTOR TO DEVELOP ABUNDANT PETROLEUM
INVESTMENT PERFORMANCE
7. INDONESIA HAS LOW PRODUCTION COST
3.00
3.50
4.00
4.50
5.00
5.50
6.00
6.50
7.00
2002 2003 2004 2005 2006 2007
US$perBOE
Production Cost
USA
Worldwide
Indonesia
Source: Performance Profiles of Major Energy Producers 2006, Energy Information Agency (EIA)
INDONESIA HAS LOW PRODUCTION COST
8. NET INCOME PER BOE
$0.00
$3.00
$6.00
$9.00
$12.00
$15.00
$18.00
2002 2003 2004 2005 2006
1. Worldwide 2. United States 3. Canada 4. Europe
5. Africa & Middle East 6. Asia-Pacific 7. South & Central America 8. Russia & Caspian
$/boe
2
4
6
8
First Break, Vol.25, Oct.,2007
.
9. PRODUCTION SHARING CONTRACT SYSTEM. OIL
PROJECT : 85% (GOI) & 15 (PSC) AND GAS : 70 %
GOVERNMENT OF INDONESIA
SIDE
• Fulfilling energy demand
• Finding more resources
and transfer it proven
reserves
• Maintaining production
output
• Optimizing Cost of
Petroleum Operations
• National/ Local
Capability and Capacity
enhancement
• Maintaining Macroecono
mic growth
• Securing of Energy
Supply
• Optimized GOI Take
INVESTORS SIDE
• Rights to Monetize
• Stability of Contract/
Contract sanctity
• Enforceable
International
Arbitration
• Competitive PSC
fiscal regime
• Legal Certainty
• Accessing to Blocks
• Optimizing Portfolio
MUTUAL BENEFIT ON THE BUSINESS
10. CONTRACTOR has technical competence and professional skills
necessary to carry out the Petroleum Operations .
CONTRACTOR shall be responsible to SKKMIGAS for the
execution of such operations in accordance with the provisions
of the PSC
CONTRACTOR shall carry the risk of Operating Costs required
in carrying out operations and shall therefore have an economic
interest in the development of the Petroleum deposits in the
Contract Area.
SKKMIGAS shall have and be responsible for the management
of the operations contemplated hereunder.
CONTRACTOR will recover all Operating Costs out of the sales
proceeds or disposition of the required quantity of Crude Oil
equal in value to such Operating Costs. Operating Costs means
expenditures made and obligations incurred in carrying out
11. SEGERA!
DIRECTORATE OF OIL AND GAS
10 % OF
INDONESIA
PARTICIPATION
JOINT
STUDY
TENDER
FOR
NEW BLOCK
APPROVAL
OF
PLAN OF
DEVELOPMENT
MONITORING
FIRM
COMMITMENT
SIGNING
OF
PSC CONTRACT
PROJECT
DEVELOPMENT
PRODUCTION
OIL
85 : 15
GAS
70 : 30
PLAN OF
DEVELOPMENT
PROCESS
COST RECOVERY : SUNK
COST, CAPITAL AND OPERATION COST
BY PSC
SKKMIGAS
MINISTRY OF EMR
EXPLOITATION
BASIC : AFE AND WP&B
ANDALUSIA BUMI ENERGI
12.
13. Western part
• 20 prospects and 40 leads in Mesozoic; 3 leads in Palezoic.
• Average Geological Chance Factors 23% (Moderately Risk)
• Total Risked Resources 0.39 BBO + 5.7 TCF.
Eastern part
DEEP WATER (>200M) IN THE EASTERN PART
14. 14PRIVATE AND CONFIDENTIAL
182
9 2 3
91
36
108
93
55 59
88
0
50
100
150
200
MBOEPD
2013 2014 2015 2016 2017 2018 2019
Sumpal
Ruby
Peciko
7C
Peciko
7B
SisiNubi
2B
Madura BD
ANDE-
ANDE
LUMUT
Banyu Urip
Kepodang
Bukit Tua
JANGKRI
K
Senoro
IDD -
Bangka
IDD –
Gehem
Hub
Masel
a
Tanggu
h
Train 3
Ga
s
oIL
IDD –
Gendalo
Hub
MDA-
MBH
Major future oil &gas projects will be dominated by gas prospect in offshore
areas
ANDALUSIA INTEREST
17. • POD has been approved on November
30, 2011
• The Oil with approximately 25.000 to
(potential figures) 40.000 BOPD to be
produced from wellhead platform which is
to be bridge linked to FPSO for further
storage & offloading
• 6 initial development well will be drilled
using a jack up rig
• First Production stream is expected on Q-3
2015 (delay from planned 2014 )APPROVED EXPENDITURE 2013 IS US$ 29 MILLION
SALDO UNRECOVERED COST US$ 89 MILLION
TOTAL PROJECT INVESTMENT : 1,521 BILLION
18. Low Cost & Low Impact
Supply ATK, Toileteries,
Cattering, Cleaning Service, Antar jemput Pegawai
Penyewaan Kendaran, Rumah Dinas, Gudang
Perbaikan Jalan, Penimbunan Tanah
Supply Tenaga Kerja (Security,
Bila diperlukan kerjasama dengan BPD untuk pendanaan
Low Cost High Impact
AMDAL, UKL/ UPL
Jasa Inspeksi NDT
Kerjasama dengan Universitas, Perusahaan untuk
Knowledge & Skill Development
Kerjasana dengan BPD untuk pendanaan
OVERALL SCHEME OF THE PROJECT
S
T
O
R
A
G
E
A
N
D
O
F
F
L
O
A
D
I
N
G
F
P
S
O
C
E
N
T
R
A
L
P
R
O
C
E
S
S
I
N
OVERALL PROJECT SCHEME
19. 19PRIVATE AND CONFIDENTIAL
N
O
CRITERIA DESCRIPTION
1 FIELD ANDE ANDE LUMUT
2 PSC AWE (AUSTRALIAN)
3 BLOCK AREAS NORTHWEST NATUNA
4 POD APPROAVL 30/11/2011
5 ONSTREAM
TARGET(POD)
2014-2015
6 ONSTREAM (FORECAST) Q1 - 2015
REALIZATION OF EXPENDITURE VS POD VALUE
SUNK
COST
(MM
US$)
INVEST
MENT
(MM US$)
OPEX+AS
R
(MM
US$)
TOTAL
NILAI POD
(MM US$)
EXPENDITUR
RREALIZATIO
N
(MM US$)
PERSENTASE REALISASI EXP.
TERHADAP TOTAL NILAI POD
49.50 599.80 871.90
1,521.2
0
89 5.85 %
MAIN ISSUES
o PRODUCTION TARGET IS DELAYED
FROM 2014 TO Q-3 2015 DUE FARM
OUT PROCESS FROM GENTING OIL TO
AWE.
o PROCUREMENT ISSUES SHOULD BE
DEVELOPED BY FEED COMBINED
APPROACH.
o FPSO LEASED MUST BE INDONESIAN
FLAG BASED ON LAW NO 17/2008
REGARDING SHIPPING
o 10 % FARM OUT SHOULD BE
TRANSFRRED TO LOCAL
ENTERPRENEURSHIP AUTHORITIES
SCOPE OF ACTIVITY
PLAN OF DEVELOPMENT REALIZATION
Drilling : 43 wells
Production Facilities
o 1 Wellhead Platform construction
o FPSO aframax types
BASIC OF DEESIGN HAS BEEN
COMPLETED. FEED WELL HEAD
PLATFOM AND COMBINED FEED +
LEASED FPSO IS BEING TENDERED.
TARGET OF PRODUCTION BASED ON
POD)
NO PARAMETER DESCRIPTION
1 CUMULATIVE
PRODUCTION
Oil : 43.5 MMbbl
2 INITIAL
PRODEUCTION
RATE
Oil : 5 Mbopd
3 PEAK OF
PRODUCTION
Oil : 25 Mbopd
4 PRODUCTION
DURATION
10 YEARS
CURRENT PROJECT STATUS
20. 20
• JV Eni 55% and GSZ 45%
Discovery wells: Jangkrik-1 - Mar 2009
Jangkrik NE-1 - Jul 2011
Location: Kutei Basin, 70 Km
offshore East Kalimantan
450 m W.D.
• Jangkrik field POD I approved in Nov
2011
• Jangkrik NE POD II submitted in Oct
18, 2012
• Production Plan : q2 2015– 300 mmscfd
Jangkrik NE
Bontang LNG
OVERVIEW JANGKRIK PROJECT
21. 21PRIVATE AND CONFIDENTIAL
NO CRITERIA DESCRIPTION
1 FIELD JANGKRIK
2 PSC ENI MUARA BAKAU
3 BLOCK AREAS MUARA BAKAU
4 APOPROVAL POD 30/12/2011
5 ONSTREAM TARGET 2015
6 ONSTREAM (FORECAST) Q3 - 2015
REALISASI EXPENDITURE VS NILAI POD
SUNK
COST
(MM
US$)
INVESTME
NT
(MM US$)
OPEX+AS
R
(MM US$)
TOTAL POD
VALUE (MM
US$)
REALISATION
N
EXPENDITUR
E
(MM US$)
PERCENTAGE OF
REALIZATION TO POD
VALUE
235.10 2.14 0.78 238.02 513.16 215.60%
Main issues
Sharing facility (gas &
kondensat) with the east
kalimantan pipe line
system operating by Total
E&P Indonesie
SCOPE OF ACTIVITY
PLAN OF DEVELOPMENT REALIZATION
Drilling :
o Re-entry 3 eksisting wells
o 4 development well
Production Facilities :
o FPU development 300 MMscfd in
capacities
o Gas & Kondensat pipeline
o Onshore Receiving Facilities
o constructionBasic Engineering
100% completed
o PQ tender approved 25 Mei
2012
TARGET OF PRODUCTION (POD)
NO PARAMETER DESCRIPTION
1 CUMULATIVE
OF
PRODUCTION
Gas : 913 BSCF
Kond : 738 Mbbl
2 INITIASL
PRODUCTION
Gas : 288 Bscf
Kond : 488 bcpd
3 PEAK
PRODUCTION
Gas : 288 MMscfd
Kond : 488 bcpd
4 DURATION OF
PRODUCTION
14 YEARS
CURRENT PROJECT STATUS
22. • JANGKRIK TIE-IN SCOPE OF WORK
Tie-ins :
Tie-in 1a gas line : 24” JKK to 42” PCK-BDK at km 7
Tie-in 1b condensate line : 6” JKK to 12” HDL-PCK
Liquid line at km 7
Tie-in 2 gas line : 20” new gas line to 20” HDL-NLM
at km 21.65
3 new lines :
24” Onshore Jangkrik Gas Line : Landfall to km 7
6” Onshore Jangkrik Condensate Line : Landfall to
km 7
20” New Gas Line : Onshore receiving facility ORF
(200m from km7) to km 21.65
Jangkrik development under PSC Muara Bakau, consist of Jangkrik-
1 and Jangkrik North East
Location : Kutei Basin, 70 km offshore East Kalimantan, 450 m
WD
Capacity 450 MMscfd
Jangkrik field POD approved in November 2011
Basic Engineering completed in May 2012
Jangkrik NE POD II approval January 2013
FEED-EPCI 1 and 2 (FPU and Export Pipelines) bid plans
approved by BPMIGAS on July 2012. EPC 3 (SPS) bid plan
approved by BPMIGAS and under tender process
Project FID targeted by 4Q 2013
First Gas 2016 (subject to FPU Delivery) at the earliest
Tie in 1a/b
Tie-in 2
22
PIPELINE TIE IN PROGRAM
23. MINISTRY
OF FINANCE
STATE
REVENUE
OPPORTUNITY
JOINT STUDY
NEW BLOCK
FARM OUT/FARM IN
PSC ACQUISITION
UPST
REAM
THE PETROLEUM BUSINESS IN INDONESIA TODAY IS VERY DYNAMIC.
MANY BUSINESS OPPORTUNITIES ARE OPEN FOR INVESTMENT.
MINISTRY OF
ENERGY & MR
DIRECTORATE GENERAL
OIL AND GAS
DOWNSTREAM
-PIPELINE FEE
-- REFINERYSERVICES COMPANY
RELATED BUSINESS OPPORTUNITIES
SKKMIGAS AND PERTAMINA
COORDINATION
RELATED BUSINESS OPPORTUNITY
LIFTING TANKER
24. OVERALL PROJECT SCHEME
JOINT STUDY
INVESTOR TO DO THE STUDY AND DEVELOP IDENTIFIED HYDROCARBON
SITE WITHIN STUDY AREAS
NEW PETROLEUM BLOCK
INVESTOR PARTICIPATION THROUGH TENDER PROCESS (TWICE A YEAR)
FARM OUT/FARM IN
INVESTOR JOINT WITH LOCAL AUTHORITY TO GET 10 % INDONESIA
PARTICIPATION OR INVESTOR JOINT TO PSC FOR PARTICIPATION ANY
FARM OUT OFFERING
PSC ACQUISITION
INVESTOR TO BUY 100 % PSC SHARE (IT CAN BE INDIVIDU OR JOINT
VENTURE WITH OTHER INVESTOR)
VESSEL TANKER
INVESTOR JOINT WITH PERTAMINA TO BUILD NEW VESSEL TANKER OR
VIA PARTNERSHIP MODEL
SERVICE COMPANY
INVESTOR ESTABLISH SERVICE COMPANY IN INDONESIA FOR
EXPLORATION OR EXPLOITATION SCOPE
