INDONESIA’S OIL AND GASOVERVIEW AND CHALLENGES ON … · 0 50 100 150 200 250 300. PEMBORAN SUMUR EKSPLORASI. Tahun 2002-2012 *) Rencana Realisasi Discovery Success Ratio (%) Rencana

MINISTRY OF

E&MR

Bandung – December 10th 2012

MINISTRY OF ENERGY AND MINERAL RESOURCESDIRECTORATE GENERAL OF OIL AND GAS

INDONESIA’S OIL AND GAS OVERVIEW AND CHALLENGES ON UPSTREAM SECTOR

ByDr. Ir. Naryanto Wagimin, M.Si

Director of Upstream Business Development

MINISTRY OF

E&MR

TARGETS FOR 2025 Maintain oil production level

50% national operatorship

Security of domestic Fuel Supply and Industrial Feedstock

91% local content (goods and services)

99% skilled national workforce

Achieving oil and gas safety, zero accidents, zero failure, and achievement of zero flares, and zero waste

PETROLEUM POLICY Oil and Gas Supply Security

Oil And Gas Utilization

Oil and Gas Pricing Policy

Unconventional Oil and Gas Business

Conservation Of Oil and Gas Production

Increasing National Capacity In Oil And Gas Industry

FUEL POLICY Feedstock & Fuel Supply Security Fuel Categorization Pricing Policy Fuel Diversification Fuel Standard and Quality Fuel Efficiency

POLICY AND TARGETSOF INDONESIA OIL & GAS MANAGEMENT

0

50

100

150

200

250

300

PEMBORAN SUMUR EKSPLORASI Tahun 2002-2012*)

Rencana Realisasi Discovery Success Ratio (%)

Rencana 117 96 88 79 117 111 162 84 126 237 276

Realisasi 75 54 64 45 82 73 70 74 95 107 36

Discovery 38 26 33 16 31 28 34 35 35 34 19

Success Ratio (% ) 51 48 52 36 38 38 49 47 37 32 52

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

*) May 2012

EXPLORATION DRILLING

MINISTRY OF

E&MR

MINISTRY OF

E&MR

OIL PRODUCTION DOMINANT GAS PRODUCTION DOMINANT

INDONESIA’S OIL AND GAS PRODUCTION PROFILE

MINISTRY OF

E&MR

*) Outlook

STRONG INVESTMENT IN UPSTREAM OIL AND GAS

The increasing investment trend in the upstream sector will support the growth of natural gas development

MINISTRY OF

E&MR

ZERO FLARE PROGRAM

1. Preparing flare gas utilizationpolicy (CNG, LPG, CityGas, EOR, Gas for Power Plant)

2. Socializing flare gas reductionpolicy to business entities (year2010);

3. Monitoring flare gas reductionimplementation (year 2010 –2025);

4. Achieving zero flare gas targetin year 2025.

0

50

100

150

200

250

300

350

400

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Flar

e G

as,

M M

S C

F D

remaining gas flare

FLARE GAS REDUCTION PROGRAM

Gas for Power Plant, LPG, CNG, Industry

MINISTRY OF

E&MR

GREEN OIL AND GAS INDUSTRY INITIATIVE(GOGII)

EFFICIENTENERGY UTILIZATIONOIL AND GAS FUELS

CO2OIL AND GAS UPSTREAM &

DOWNSTREAM ACTIVITIES

CCS IN OIL AND GAS INDUSTRY

8

• INDUSTRY

• CCS

• EOR

MINISTRY OF

E&MR

AREA FOR CCS POTENTIAL IN INDONESIA

9

Pacific Ocean

AUSTRALIA

Indian Ocean

THAILAND

Natuna

BRUNEI

EASTMALAYSIA

Banda Aceh

SINGAPORE

Bontang LNG Plant

Attaka

KALIMANTAN

IRIAN JAYA

JakartaJ A V A

BALI

TIMOR

I N D O N E S I A

Sangatta

MALAYSIA

PHILIPINESNatural CO2 Source

Depleted Oil Reservoirs & CO2 from LNG Plant

MINISTRY OF

E&MRCHALLENGES ON UPSTREAM SECTOR

CHALLENGES

OIL & GAS CORE BUSINESS: NATURAL DECLINE OVERLAPPING LIMITED INFRASTRUCTURE CAPACITY (PROCESSING &

DISTRIBUTION)

GOOD ENGINEERING PRACTICES & ENVIRONMENT: OIL & GAS SAFETY OPERATION ENVIRONMENTAL SAFETY RESERVOIR MANAGEMENT COMMUNITY DEVELOPMENT

POLICY: BALANCE BETWEEN NATIONAL INTEREST AND INVESTOR

INTEREST

FEEDSTOCK & FUEL SUPPLY SECURITY

ACHIEVEMENT

MINISTRY OF

E&MR

11

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