INDONESIA GAS SITUATION

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MINISTRY OF ENERGY AND MINERAL RESOURCES

DIRECTORATE GENERAL OF OIL AND GAS

INDONESIA GAS SITUATION

by :

Agus Cahyono Adi

Deputy Director for Oil and Gas State Revenue

Delivered at:

WORKSHOP ON UNCONVENTIONAL GAS

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2

2 AGENDA

OIL AND GAS CONDITION

GAS POLICY

GAS INFRASTRUCTURE PLAN AND DEVELOPMENT

GAS BALANCE

UNCONVENTIONAL GAS DEVELOPMENT

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**INDONESIA’s GAS PRODUCTION 2000 – 2011*)**

*) Data s.d. Maret 2011

0 1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

MMS

C

F

D

PRODUCTION 7,927 7,690 8,318 8,644 8,278 8,179 8,093 7,686 7,883 8,386 9,336 8,944

UTILIZATION

7,471 7,188 7,890 8,237 7,909 7,885 7,785 7,418 7,573 7,912 8,829 8,483

Losses

456

502

428

407

369

294

308

268

310

474

507

461 2000

2001 2002

2003 2004

2005

2006 2007

2008 2009

2010 2011*

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INDONESIA’s GAS SUPPLY 2000 - 2010

0 4,000

8,000

MMS

C

F

D

TOTAL KONSUMSI 6,416.4 6,260.4 6,857.4 7,255.6 7,086.1 6,934.3 6,901.1 6,639.3 6,758.2 7,008.7 7,787.6

EXPOR

4,348.6 4,184.2 4,768.8 5,049.0 4,762.3 4,615.3 4,377.2 4,182.3 4,114.3 4,152.4 4,827.2

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

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6

6 GAS RESOURCES = 334.5 TSCF

1.28

4.23

8.56

3.70

51.46

18.33

24.32 NATUNA

5.74 NORTH SUMATRA

15.22

17.90 CENTRAL SUMATRA

ACEH (NAD)

SOUTH SUMATRA

WEST JAVA

6.40 EAST JAVA

EAST BORNEO

CELEBES

MOLUCCAS

PAPUA

(Advance Resources Interational, Inc., 2003 processed)

PROVEN

= 108.4 TSCF

POTENTIAL = 48.74 TSCF

TOTAL

= 157.14 TSCF

CBM RESOURCES = 453.30 TCF

GAS RESERVES (TSCF)

NATURAL GAS RESOURCES - RESERVES &

CBM RESOURCES

(AS OF JANUARY 1

st

₂₀₁₀₎

Total CBM Basin = 11

(Advance Resources Interational, Inc., 2003)

Signed Contracts up to 2010:

23 CBM PSCs

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8

8 ROLE OF OIL AND GAS FOR NATIONAL

DEVELOPMENT

High Technology

High Capital

High Risk

Sustainable

National

Development

OIL &GAS

INDUSTRI

OIL &GAS

INDUSTRI

FULFILL DOMESTIC

FUEL DEMAND

CREATING

MULTIFLIER

EFFECTS

SOURCE OF

STATE REVENUE

INDUSTRIAL RAW

MATERIAL

RESOURCES

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NATIONAL GAS POLICY

A. IMPROVING EXPLORATION ACTIVITY TO INCREASE NEW

RESERVE (CONVENTIONAL AND UNCONVENTIONAL)

B. GAS ALLOCCATION POLICY

C. GAS PRICING POLICY (TO SECURE SUPPLY AND GROW

INVESTMENT)

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POLICY IMPLEMENTATION

NO

OUTLINE

DETAILS

1 improving

exploration activity

to increase new

reserve

• Opening new working area with the target singed contracts 40

working area per year baru pertahun

• In 2009, signed contracts 34 Working Area and in 2010,

signed contracts 38 Working Area

• Develop unconventional gas resources (CBM dan shale gas)

2 Gas allocation

policy

Gas utilization is prioritized for domestic use by keeping

considering economic field development

A new found gas reserve utilization allocation is prioritized for

fulfilling local needs. if there is an excess can be utilized for

fulfilling the need outside the local.

Gas utilization for domestic needs is done by considering the

availability of the infrastructure, reserve and the economic of

field by prioritized upstream utilization ( electricity and fertilizer)

if there is a shortage (less gas supply) in certain area as result

of lack of gas resources and infrastructure, so it can be done

gas reallocation or swap as one form of contingency plan.

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POLICY IMPLEMENTATION

CONTINUATION ...

NO

OUTLINE

DETAILS

3 Gas pricing policy (to

secure supply and grow

investment)

• Government regulate and determine gas price

• Gas price depend on the economic of gas field

development and availability of infrastructure

• Gas price can be increased related to oil price,

product’s price and the combination of product and oil

price

• Gas price model selection consider state revenue by

considering optimum of economic growth

• Determine gas price by considering balance between

gas’ producer and consumer

4 Infrastructure

Development

- Continue contruction transmission and distribution

- Contruction of LNG Receviing termina in Jawa and

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GAS INFRASTRUCTURE

PLAN AND DEVELOPMENT

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Infrastructures: Existing and Planned

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MMSCFD

0

2.000

4.000

6.000

8.000

10.000

12.000 2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

CONTRACTED

DEMAND

POTENTIAL

DEMAND

EXISTING

SUPPLY

PROJECT

SUPPLY

POTENTIAL

SUPPLY

dari

CADANGAN

BELUM

DIKEMBANGKAN

POTENTIAL

SUPPLY

dari

KAPASITAS

UNIT

DAN

REGASIFIKASI

Existing Supply

Potential

Demand

Project

Supply

Contracted

Demand

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Gris

sik

THAILAND

LAOS

CAMBODJA

VIETNAM

BANGKOK

BRUNEI

DARUSSALAM

KUALA

LUMPUR

EAST

MALAYSIA

MANILA

SINGAPORE

UJUNG PANDANG

PAGERUNGAN

SUMSEL

SUMUT

SUMTENG

JABAR

JATENG

JATIM

EAST

NATUNA

MALUKU SELATAN

Blok Masela

PAPUA

NAD

KALTIM

SULAWESI

INDONESIA GAS BALANCE MAP 2011-2025

(EXISTING SUPPLY + PROJECT SUPPLY VS CONTRACTED DEMAND)

DURI

REG I (NAD) Year 2011 2020 2025 Supply 235 78 19 Demand 25 75 15 Balance 210 3 4 Keluar Region 197 0 0 Net Balance 13 3 4

REG VII (KALIMANTAN BAGIAN TIMUR) Year 2011 2020 2025 Supply 2889 1351 273 Demand 522 140 20 Balance 2367 1211 253 Keluar Region 1695 333 0 Net Balance 672 878 253 REG XI (KEPULAUAN RIAU)

Year 2011 2020 2025 Supply 550 150 0 Demand 103 36 7 Balance 447 114 -7 Keluar Region 575 318 80 Masuk Region 78 78 0 Net Balance -50 -126 -87

REG II (SUMATERA BAGIAN UTARA) Year 2011 2020 2025 Supply 52 27 4 Demand 85 2 0 Balance - 33 25 4 Keluar Region 0 0 0 Net Balance - 33 25 4

REG VIII (SULAWESI BAGIAN SELATAN) Year 2011 2020 2025 Supply 48 62 23 Demand 38 38 0 Balance 10 24 23 Keluar Region 0 0 0 Net Balance 10 24 23

REG IX (SULAWESI BAGIAN TENGAH) Year 2011 2020 2025 Supply 0 410 403 Demand 0 0 0 Balance 0 410 403 Keluar Region 0 335 335 Net Balance 0 75 68 REG X (PAPUA) Year 2011 2020 2025 Supply 880 1039 1024 Demand 2,5 5 0 Balance 877,5 1034 1024 Keluar Region 943 1028 1028 Net Balance -65,5 6 - 4

5

REG II (SUMATERA BAGIAN TENGAH &SELATAN) Year 2011 2020 2025 Supply 1723 1451 106 Demand 870.1 385 0 Balance 852.9 1066 106 Keluar Region 1172 780 0 Net Balance - 319 286 106

REG IV (JAWA BAGIAN BARAT) Year 2011 2020 2025 Supply 616 131 54 Demand 1440 583 0 Balance -824 -452 54 Masuk Region 619 604 0 Net Balance -205 152 54

REG V (JAWA BAGIAN TENGAH) Year 2011 2020 2025 Supply 1.8 148 50 Demand 3.5 130 50 Balance - 1.7 18 0 Keluar Region 0 0 0 Net Balance - 1.7 18 0

REG VI (JAWA BAGIAN TIMUR & BALI) Year 2011 2020 2025 Supply 467 342 149 Demand 573 275 42 Balance - 106 67 107 Keluar Region 0 0 0 Net Balance - 106 67 107

REG XII (MALUKU BAGIAN SELATAN) Year 2011 2020 2025 Supply 0 450 450 Demand 0 0 0 Balance 0 450 450 Keluar Region 0 0 0 Net Balance 0 450 450

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Gris

sik

THAILAND

LAOS

CAMBODJA

VIETNAM

BANGKOK

BRUNEI

DARUSSALAM

KUALA

LUMPUR

EAST

MALAYSIA

MANILA

SINGAPORE

UJUNG PANDANG

PAGERUNGAN

SUMSEL

SUMUT

SUMTENG

JABAR

JATENG

JATIM

EAST

NATUNA

MALUKU SELATAN

Blok Masela

PAPUA

NAD

KALTIM

SULAWESI

INDONESIA GAS BALANCE MAP 2011-2025

(EXISTING SUPPLY + PROJECT SUPPLY VS CONTRACTED DEMAND + POTENTIAL DEMAND)

DURI

REG I (NAD)

Year 2011 2020 2025 Supply 235 78 19 Demand 185 229 229 Balance 50 -151 -210 Keluar Region 197 0 0 Net Balance -147 -151 -210

REG VII (KALIMANTAN BAGIAN TIMUR) Year 2011 2020 2025 Supply 2889 1351 273 Demand 535 784 561 Balance 2354 567 -288 Keluar Region 1695 333 0 Net Balance 659 234 -288

REG XI (KEPULAUAN RIAU)

Year 2011 2020 2025 Supply 550 150 0 Demand 247 234 234 Balance 303 -84 -234 Keluar Region 575 318 80 Masuk Region 78 78 0 Net Balance -194 -324 -314

REG II (SUMATERA BAGIAN UTARA) Year 2011 2020 2025 Supply 52 27 4 Demand 260 203 201 Balance - 208 -176 -197 Keluar Region 0 0 0 Net Balance - 208 -176 -197

REG VIII (SULAWESI BAGIAN SELATAN) Year 2011 2020 2025 Supply 48 62 23 Demand 83 111 110 Balance 35 -49 -87 Keluar Region 0 0 0 Net Balance -35 -49 -87

REG IX (SULAWESI BAGIAN TENGAH) Year 2011 2020 2025 Supply 0 410 403 Demand 30 145 145 Balance -30 265 258 Keluar Region 0 335 335 Net Balance -30 -70 -77 REG X (PAPUA) Year 2011 2020 2025 Supply 880 1039 1024 Demand 18.5 221 216 Balance 861.5 818 808 Keluar Region 943 1028 1028 Net Balance -81,5 -210 - 220

REG II (SUMATERA BAGIAN TENGAH &SELATAN)

Year 2011 2020 2025 Supply 1723 1451 106 Demand 1015.5 915 673.9 Balance 707,5 536 -567.9

REG IV (JAWA BAGIAN BARAT) Year 2011 2020 2025 Supply 616 131 54 Demand 1858 2281 2207 Balance -1242 -2150 -2153

REG V (JAWA BAGIAN TENGAH) Year 2011 2020 2025 Supply 1.8 148 50 Demand 168 449 449 Balance - 166.2 - 301 -399

REG VI (JAWA BAGIAN TIMUR & BALI) Year 2011 2020 2025 Supply 467 342 149 Demand 821 1165 1125 Balance - 354 -823 -976

REG XII (MALUKU BAGIAN SELATAN) Year 2011 2020 2025 Supply 0 450 450 Demand 0 0 0 Balance 0 450 450

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UNCONVENTIONAL GAS

DEVELOPMENT

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Ministerial Regulation

No. 036, revision to

Ministerial Regulation

No. 033/2006

1.0 BcfD

1.8 BcfD

2008 2009 2010

2005

2006

2007

2004

PP: CBM – 1

Rambutan

(GOI Sponsor)

Ministerial

–

Start of CBM era

(1

st

_{CBM PSC Contract )}

Increasing number of CBM Contract

Average production = 250 MSCFD/ well

Government Participation

Start of Commercial Period (Exploration)

Estimated CBM Production

Legend:

2008

2010

CBM Estimated Production

~500 MMSCFD

CBM Estimated

Production

~1500 MMSCFD

2011

2012 2013 2014

2015

2016 2017 2018 2019

2020

2021 2022 2023 2024

2025

Minister Decree

No.036/2008, revision

to Minister Decree No.

033/2006

Minister Decree

No. 033/2006

CBM for Electricity

Pilot Project

1998

Ministerial

regulation

No.1669

2007

ROAD MAP

OF CBM DEVELOPMENT IN INDONESIA

CBM Estimated Production

~1000 MMSCFD

2003

2005

Feasibility study

Technical and Economical

2009

2008

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20

20 CBM for electrical power

CBM for electrical power

CBM UTILIZATION PLANNING

CBM for LNG

INDUSTRY

CITY GAS

CNG for

TRANSPORTATION

CBM for another domestic

consumption

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Merauke Grissik Semarang

Pacific Ocean

Indian Ocean

Bangkok

Phnom

Penh

Ban Mabtapud

Ho Chi

Minh City

CAMBODIA VIETNAM THAILAND LAOS Khanon Songkhla Erawan Bangkot Lawit Jerneh WEST MALAYSIA Penang Kerteh

Kuala

Lumpur

Manila

Philipines

South

China

Sea

Sin g ap ore Ga s Tru n klin e NatunaAlpha Kota Kinibalu BRUNEI

Bandara Seri

Begawan

Bintul u EAST MALAYSIA Kuchin g Banda Aceh Lhokseumawe Medan Duri Padang S U M A T R A Jambi Bintan SINGAPORE Samarinda Balikpapan Bontang LNG Plant

& Export Terminal _Attaka

Tunu Bekapai KALIMANTAN Banjarmasin Manado SULAWESI Ujung Pandang BURU SERAM Ternate _HALMAHERA Sorong

IRIAN JAYA

Jakarta

J A V A _SurabayaBangkalan BALI SUMBAWA Pagerungan LOMBOK FLORES TIMOR

I N D O N E S I A

Duyong Port Dickson Port Klang Mogpu Dumai Batam Guntong Ardjuna Fields MADURA Jayapura

INDONESIA GAS SITUATION

MINISTRY OF ENERGY AND MINERAL RESOURCES

DIRECTORATE GENERAL OF OIL AND GAS