Country Review: Indonesia - Asia Offshore Energy Conference · Country Review: Indonesia. ... percentof the 2013 revised state budget’s (APBN-P) ... target set out in the APBN-P.

AOEC, Bali 25th October 2013Presented by: Kameswara NatakusumahJardine Lloyd Thompson - Indonesia

Country Review: Indonesia

Welcome to Indonesia �. ☺☺☺☺

The Republic of Indonesia

Source: AXCO Report June 2013

The Republic of Indonesia

Source: Energy Nusantara.com

Source: AXCO Report June 2013

A

GORGEOUS

BUT

SHAKING

COUNTRY:

NAT-CAT

JLT World

Risk Review™

Risk Ratings –

Indonesia

Insurance / Reinsurance Minimum

Capital Requirements in Indonesia

Source: AXCO Report June 2013

Financial Services Authority / OJK

Law No.21, 2011 � Establishment of FSA / OJK in 22 November 2011

Main function:

“to provide coordination and monitoring roles to financial services industry

including Banks, Capital Markets and Non Bank Financial Industry

including Insurance, Pension Fund and Non Bank Financial Institutions”

Thus, OJK replaced the roles & functions of the Insurance Bureau of the

MOF with re to Insurance/Reinsurance supervisory & regulatory.

Source: www.ojk.go.id

Energy Related Laws and Regulation

Source: SKK Migas

Law No.30 - 2007 Regarding Energy

Government Regulation No. 17 – 1974 regarding Control Over the

Implementation of Offshore Oil and Gas Exploitation

Government Regulation No. 42 – 2002 concerning the Implementing Body

for Upstream Oil and Gas Activities

Government Regulation No. 35 – 2004 concerning Oil and Gas Upstream

Business Activities

Government Regulation No. 34 – 2005 concerning Amendments to GR No.

35 – 2004 concerning Oil and Natural Gas Upstream Business Activities

BP–MIGAS: DISSOLVED

Source: SKK Migas

The Constitutional Court (On 13 November 2012, the Constitutional Court

(Mahkamah Konstitusi or "MK") dissolved BP Migas through Decision No.

26/PUU-X/2012 on the judicial review of the oil and Gas Law (Law No. 22 of 2001).

In response, the President issued Presidential Regulation No. 95 of 2012 on the

Transfer of the Duties and Functions of the Upstream Oil and Gas Activity Agency

(BP Migas) ("Regulation 95").

Following the issuance of Regulation 95, the Minister of Energy and Mineral

Resources ("ESDM") issued Decree No. 3135K/08/MEM/2012 regarding the

Transfer of the Duties, Functions and Organizational Structure of the Upstream Oil

and Gas Activity Agency ("Decree 3135"). Regulation 95 and Decree 3135 govern

the employees of BP Migas, BP Migas' counterparts under Production Sharing

Contracts (PSCs) and the PSCs themselves, and BP Migas' duties were assigned to

the ESDM.

BP–MIGAS Transformation to SKK-MIGAS

Source: SKK Migas

By Presidential Regulation (PERPRES) No. 9 – 2013 signed by President

SBY on January 10th 2013

The assets of BP Migas will be utilized by SKK Migas. The same applies to

the employees, i.e the BP Migas employees now work for SKK Migas

(Special Task Force for Upstream Oil and Gas).

SKK Migas is assigned to manage the upstream oil and gas business

activities under a Cooperation Contract.

ROLES OF SKK MIGAS

Source: SKK Migas

1) to proffer inputs for consideration to the Minister of Energy and Mineral

Resources at its discretion in preparing and offering the bidding round of Working

Areas and Cooperation Contract;

2) to sign Cooperation Contracts;

3) to review and submit the plan of field development to be the first production in a

Working Area to Minister of Energy and Mineral Resources for obtaining

approval;

4) to grant an approval for the development plan other than as referred to in previous

point;

5) to grant an approval for the work programs and budget;

6) to conduct monitoring and to make report to Minister of Energy and Mineral

Resources on the performance of the Cooperation Contracts; and

7) to appoint sellers of oil and/or gas of the state entitlement that may generate

maximum profits to the state.

Oil and Gas Production 2000 - 2011

Source: SKK Migas

Source: The Jakarta Post, October 9th 2013

Oil, Gas Production on Target: SKKMigas

The Jakarta Post, Jakarta | Business | Wed, October 09 2013, 6:04 PM

The oil and gas regulatory special task force (SKKMigas) said as of September, crude oil and

condensate production reached 829,000 barrels per day (bopd).

Acting SKKMigas head Johannes Widjonarko said the oil production figure accounted for 98.7

percent of the 2013 revised state budget’s (APBN-P) 840,000 bopd target.

“The target has not yet been achieved,” he said during a hearing session at the House of

Representatives’ Commission VII, which oversees energy, in Jakarta, on Wednesday, as quoted by

Antara news agency. However, Widjonarko said, SKKMigas predicted oil and gas production

would attain the APBN-P target. He said SKKMigas would increase oil well maintenance and

drilling activities to achieve the target. .

According to the SKKMigas head, as of September, 6,766 million cubic feet per day (mmscfd), or

1.2 million barrels per day equal to oil, of gas had been collected. This was 98.5 percent of the

target set out in the APBN-P. Overall, as of September, the number of oil and gas production

reached 2.04 million barrels or 98.6 percent of total 2.08 million barrels per day equal to oil

targeted by the APBN-P. The targeted 2.08 million barrels per day of oil and gas would bring in

US$56.6 billion. (ebf)

Gas Production - Stats

Source: SKK Migas

Crude, Condensate and Gas Production

Source: SKK Migas

Working Areas

Estimated Total Capacity – US$ 3.4bn (ex clashes)

Source: SKK Migas

The PSC (Production Sharing Contractors)

COAL BED METHANE (CBM) = 54 - PSCs

OIL & GAS EXPLORATION = 178 - PSCs

OIL & GAS PRODUCTION = 76 - PSCs

Source: SKK Migas

PAST 12 MONTHS PROJECTS

CNOOC – Mila and Asti A

PETRONAS – Ketapang

PETRONAS - Kepodang

PHE ONWJ – UL Project

PHE ONWJ – GG Project

PHE ONWJ – KL Gas Lift

CONNOCO PHILIPS – South Belut

CHEVRON – North Duri

HUSKY CNOOC MADURA LTD – BD Field

SANTOS – Peluang Field Development

TOTAL E&P – South Mahakam

PERTAMINA EP – Donggi Project

SALAMANDER – Kerendan (On-Shore)

MEGA PROJECTS (Unofficial)

Go-ahead for Chevron’s IDD project given by regulator

Amahl S. Azwar, The Jakarta Post, Jakarta | Headlines | Sat, February 02 2013

Chevron Pacific Indonesia, US-based energy giant Chevron’s local subsidiary, has received approval from the

country’s upstream oil and gas regulatory special task force SKKMigas to proceed with its Indonesia Deep Water

Development (IDD) project in the Makassar Strait off Sulawesi.

Newly appointed SKKMigas head Rudi Rubiandini, formerly the country’s energy and mineral resources deputy

minister, said on Friday he had signed the plan of development (POD) for the IDD project.

“We expect the IDD project to meet its investment commitment after the signing,” he said in Jakarta.

Chevron’s IDD project consists of three main fields, comprising the Bangka, Gendalo and Gehem fields. An estimated

US$7 billion will be invested in the project.

MEGA PROJECTS (Unofficial)

Amahl S. Azwar, The Jakarta Post, Jakarta | Business | Wed, February 20 2013:

…….. “ENI will begin their drilling campaign in a deep-water basin in their

Bulungan block in the Makassar Strait in September this year. In November this

year, they will drill an exploration well in their Muara Bakau block, located in the

same area,” – said Muliawan, the newly appointed operations deputy at the upstream

oil and gas regulatory special force SKKMigas …..

MEGA PROJECTS (Unofficial)

WHAT NEXT? – More CBM ActivitiesCBM exploration and development has intensified in Indonesia in recent years, particularly since the first

Production Sharing Contracts were awarded in 2008. At the same time gas prices have risen sharply, to

$11/Mcf in Central Sumatra and $15/Mcf in East Kalimantan. (Note that gas prices are 5 to 10 times

higher than in North America.)

Source: CBM Asia

WHAT NEXT? – More Deep Waters

Source: Migas Review

IDD (Indonesian Deep Waters Development) will start producing in 2018

said Rubiandini – SKK Migas Chief. SKK Migas has approved the POD

(Plan of Development) for IDD.

More Mega Projects?

Terima kasih

Thank you