UPDATES ON INDONESIA S UPSTREAM OIL & GAS ENERGY SEMINAR: EFFICIENCY IN OIL INDUSTRY Delivered By: MULIAWAN Deputy for Operations - SKK Migas Jakarta, April 6 th 2017
OUTLINE Current Conditions Of Upstream Oil & Gas Strategic Goals Survey, Drilling & WO/WS Activities Technology Applications Closing
CURRENT CONDITION OF INDONESIA UPSTREAM OIL & GAS Modern oil & gas industry in Indonesia was started in 1885. Upstream oil & gas business activities are conducted through a Production Sharing Contract (PSC). Oil & gas still play vital role for the country, as source of energy supply and source of state s revenue. RESERVES (3P) & RRR LIFTING: 2,008 MBOEPD WIDER GAP OF SUPPLY&DEMANDS SHIFTED TO GAS ERA. *2016 is temporarary data, un-audited Democratization & regional autonomy era: more stakeholders demanding more involvement; upstream O&G industry is no longer treated as lex specialis.
11 535 11 854 INDONESIA S UPSTREAM INVESTMENT SIZE 13 986 16 541 18 987 19 275 14 322 10 947 US$ Million 30000 25000 Exploitation Exploration Total ICP 110,85 112,23 105,02 95,57 ICP (US$/barrel) 120 100 20000 15000 61,6 12 452 78,87 13 515 16 016 17 897 20 378 20 381 49,21 14 894 11 153 80 60 10000 40 40 5000 20 0 2009 2010 2011 2012 2013 2014 2015 2016 0 Notes: 2016 figures are temporary
CURRENT CHALLENGES IN INDONESIA UPSTREAM SECTOR Exploration will focus on high prospect in eastern part of Indonesia and Deepwater Region. Require higher operational cost compare to onshore and shallow water Mature fields will need IOR and EOR method, thus result in challenges form economic perspective due to relative high production cost Monetization Potential from Exploration And Endorsing EOR Method Will Improve Long Term Production Profile, and Shall Need Sustain Investment Indonesia is in the process of reforming its fiscal structure and bureaucracy, to enhance attractiveness of doing investment in Indonesia region, including in Energy Sector
STRATEGIC GOALS TO 2020 Operational Cost Efficiency Increasing Local Content Utilization Improving National Worker s Competency Increasing Oil And Gas Resource And Reserve Optimizing Oil And Gas Productions Implementing Good Governance In Oil And Gas Activities Accelerating Business Process And Improving Supporting Facilities To deal with current challenges...
DEVELOPMENT DRILLING & WO/WS OUTLOOK 4000 3500 3000 DEVELOPMENT DRILLING, WORKOVER & WELLSERVICES 33 925 31 829 31 572 30 290 29 076 Drilling Forecast Drilling 2011-2016 WO Forecast WO 2011-2016 WS Forecast WS 2011-2016 40000 35000 30000 2500 21 223 22 878 22 914 21 868 25000 2000 16 648 20000 1500 952 1000 500704 13 297 839 848 1 052 900 1 245 1 019 1 320 541 1 198 213 912 586 564 572 550 15000 10000 5000 0 228 265 331 313 333 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 0 *Data collected from Workshop held by Deputy for Planning - SKK Migas
OIL & GAS LIFTING OUTLOOK 9000 808 385 800 000 816 946 8500 8000 7500 7000 6500 6373 850 000 840 000 769 795 723 477 677 728 Gas Target Gas Forecast Oil Target Oil Forecast 7280 7280 6961 6980 6992 6720 6568 802 000 639 640 7387 7280 900000 800000 700000 600000 500000 400000 300000 200000 100000 6000 0 2017 2018 2019 2020 2021 *Data collected from Workshop held by Deputy for Planning - SKK Migas
TECHNOLOGIES APPLICATIONS DRILLING APPLICATIONS Underbalanced Drilling & Managed Pressure Drilling Fracturing Coil Tubing Drilling, Casing While Drilling Pressure Test While Drilling & Downhole Deployment Valve Expandable Tubular, Light Architecture Casing & Monobore Completion
TECHNOLOGIES APPLICATIONS WO/WS APPLICATIONS In-situ Pressure Maintenance Capillary String Permanent Coiled Tubing Gas Lift & Smart Gas Lift Orifice Tractors Manifold Gas Sensor Suspended Well Reactivation Reservoir Surveillance Electric Submersible - Progressive Cavity Pump
2016 SKK Migas All rights reserved MAJOR UPSTREAM OIL & GAS PROJECT Status Update: February 2017 ANDE ANDE LUMUT EPC Tender Production (2018): 25000 bopd JAMBU AYE UTARA Preparation FEED Tender Production (2020)*: 110 MMscfd BUKIT TUA Already onstream, 1st oil May 2015, 1st gas March 2016 Production : 20000 bopd; 50 MMscfd JANGKRIK Under construction Production (Q3-2017): 450 MMscfd, 200 bopd IDD BANGKA : already onstream 115 MMscfd, 4000 bopd (Agt-2016) GENDALO-GEHEM: Revised POD Gendalo Hub: 700 MMscfd, 20000 (Q4-2022)* Gehem Hub : 420 MMscfd, 27000 (Q2-2023)* DONGGI SENORO SENORO: Onstream Q2-2015 310 MMscfd ; 6000 bopd DONGGI: onstream April 2016 Production : 60 MMscfd, 400 bopd MATINDOK: Under construction 65 MMscfd (Q1-2017), 800 bopd TANGGUH TRAIN-3 ACEH SUMATERA UTARA KEP. RIAU KALIMANTAN TIMUR Under Construction: EPC Prepared Production (Q2-2020): 3,8 MTPA (700 MMscfd), 3200 bopd PONDOK MAKMUR Already onstream May 2016 Production (Q2-2016) : 4000 bopd; 42 MMscfd BANYU URIP CENTRAL SUMATERA Already Onstream: (Train-A onstream Des 15, Train-B/full onstream Jan 16, Gas injection system: May 16 Production capacity: 185000 bopd LAMPUNG SOUTH SUMATERA JAWA TENGAH JAMBARAN TIUNG BIRU - CENDANA EPC Tender in progress Gas Price Discussion Production (2020): 330 MMscfd JAWA TIMUR MADURA BD Under construction Production (Q1-2017): 110 MMscfd, SULAWESI TENGAH SOUTH SULAWESI MDA dan MBH Under construction Production (Q1-2019): 175 MMscfd MALUKU PAPUA BARAT WASAMBO Under Construction Production (Q1-2017): 80 MMscfd ABADI POD-1 Revision in progress Production Started & Capacity (TBD)
CLOSING O&G will still play dominant role in Indonesia s primary energy mix. Need massive exploration activities to boost production as well as reserves (RRR > 1). Upstream activities are moving towards eastern part of Indonesia: more capital intensive, more robust technology, and more risks. Opportunities of mutual cooperation with foreign parties : More investment in upstream O&G Implementation of EOR Gas processing & transportation Offshore technology & infrastructure Unconventional hydrocarbon
CLOSING SKK Migas Stake Holders PSC
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