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CURRENT OFFSHORE GAS ASSETS, DEVELOPMENTS &
POTENTIAL for FLNG DEVELOPMENT
Sampe L. PurbaVP Program and Budgeting PSCBPMIGAS – INDONESIAslpurba@bpmigas.com
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AgendaOVERVIEW OF OFFSHORE GAS RESERVES : SHALLOW, DEEPWATER AND STRANDEDGAS RESOURCE ALLOCATIONACHIEVING SYNERGIC COOPERATION AND BUSINESS PARTICIPATIONPERSPECTIVE ON FLNG TECHNOLOGY AND DEVELOPMENTConcluding remarks
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SEDIMENT BASINS SPREAD ACROSS THE COUNTRY
SOUTH CHINA SEA
SERAW
AK
BASINS WITH OIL & GAS PRODUCTION (14)
BASINS WITH DISCOVERY (7)
BASINS DRILLED (15)
BASINS NOT YET DRILLED (24)
MALAYSIA
PACIFIC OCEAN
SUM
ATRA
KALIM
ANTA
N
SULAW
ESI
IRIAN JAYA
JAWA
C
A
B
N
NATUNA
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EXPLORATION AND EXPLOITATION BLOCKS ACROSS THE COUNTRY
5.55
1.26
10.57
17.74
3.68 EAST JAVA
5.29
21.78
52.15
2.6923.71
15.22
Country’s Gas Reserve(3P) Map
Land = 68.56 TCFG
Shallow = 23.71 TCFGDeep Water = 15.22 TCFGStranded = 52.15 TCFG
Sea :
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AgendaOVERVIEW OF OFFSHORE GAS RESERVES : SHALLOW, DEEPWATER AND STRANDEDGAS RESOURCE ALLOCATIONACHIEVING SYNERGIC COOPERATION AND BUSINESS PARTICIPATIONPERSPECTIVE ON FLNG TECHNOLOGY AND DEVELOPMENTConcluding remarks
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Our Treasures
Country’s Gas Reserves
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Gas allocation shown
Lifting Oil4.99%
Own Use+HSE Flare16.82%
Pupuk7.94%
Listrik10.24%
Industri13.61%
Industri CO20.02%
Domestik (LPG)1.84%
Ekspor44.54%
Domestik55.46%
Ekspor44.54%
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Fertilizer
7.94%
Power10.24
%Manufactu
re 13.61%
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Small and marginal field
Major field with economics reserves
Domestic marketInternational
market with higher price
Export to domestic price difference1. DMO volume to
Contractor2.Some to Govt
Entitlement
Development of small and marginal
field
National Gas Supply Management Policy model• Objective:
• to improve the economics of marginal gas development• Implementing Gas Domestic based on accessibility to the consumer’s market
Supply gas
Revenue
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AgendaOVERVIEW OF OFFSHORE GAS RESERVES : SHALLOW, DEEPWATER AND STRANDEDGAS RESOURCE ALLOCATIONACHIEVING SYNERGIC COOPERATION AND BUSINESS PARTICIPATIONPERSPECTIVE ON FLNG TECHNOLOGY AND DEVELOPMENTConcluding remarks
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Host Government Perspectives
National Resource allocation
Development
scenario and
Technology Options
Local Business Synergy
and Participati
on
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National Resource allocationDomestic vs Export• Security of domestic supply and industrial feedstock• Hunting and securing hard currency
Transforming the national industry• Increasing added value for sustainable development• Degree of Participation in LNG chain : subsurface,
extracting, liquifaction,shipping, regasification• Accelerating and stimulating supporting manufacture
Regional and National Geo Economics Strategy• Safeguarding and enhancing geographical border• Participation of National or State Owned Company in border
line fields
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Local Business Synergy, Contribution and Participation >> comprehensive growth
SWAP for captive market• Barter for domestic shipyard contract• Alliance with domestic manufacturing
company• DMO swap inter Corp
Local contents• Local logistic base• Training ground for national employees• Community Development and corporate social
responsibility
Supporting services• National Banking involvement in intermediaries and
transaction• research center• Insurance and financing
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Regulatory aspect
Allocation and commercial
aspect
•Domestic market obligation (DMO)
•Pricing and commercial aspect
•Taxation, remittance, banking
Technical and
operational aspec
t
•Reserve confirmation, drilling, processing and shipping
•Health, Security and Environment
Legal aspec
t
•Ownership and legal status of FLNG
•Schematic arrangement as downstream or upstream expansion
•Will it be categorized as storage or ship ?
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Risk from Government or HostCountry Perspectives
Mostly are ignored as too blurry to measure in exact monetarywisePressure to get ease the burden of economyLow added value in economy chainImporting dominant player to your yard
Risk as Octopussy effect, almost cul de sac and entering point of no return
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INVESTOR’S Perspective
Sanctity of Contract
and certainty of Rule of the games
Maximization of
Return of Investmen
t
Technical aspect
consideration
Enhancement and Trade off
to its Global
Portfolios
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Sanctity of Contract
Maximation of Return of Investment
Technical and commercial
Aspect
Enhancement to its global
position
Sanctity of contract vs Flexibility
Hurdle rate competition among global portfolios
• required reserves•Subsurface property characteristics
•Capitalizing and mobilizing HQ resources (e.g Technical, R &D, global supply chain)
Major changes of circumstances and Squaring mechanism
Concerned over Opex – Capex not to over run
•Size of FLNG•Hull and top side design and lay out•Liquifaction technology
•Integration line of business (FEED – Project – Upstream – downstream – support services)
Excercise inalienable rights in the name of sovereignty interest
Long term operational investment horizon
• shipping arrg’mt•Receiving terminal•Commercial deal•Financier
•Higher bargain position across its peer
INVESTOR’s Perspective
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Alignment of interest
Profit and
economics
People Welfare
Profit and
welfareTo balance the interest of parties involved
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AgendaOVERVIEW OF OFFSHORE GAS RESERVES : SHALLOW, DEEPWATER AND STRANDEDGAS RESOURCE ALLOCATIONACHIEVING SYNERGIC COOPERATION AND BUSINESS PARTICIPATIONPERSPECTIVE ON FLNG DEVELOPMENTConcluding remarks
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Development Scenario and Technology OptionsUtilizing stranded gas reserves from remote areas• On shore or pipe line transfer• FCNG • FLNGDevelopment Scenario• Full scale• Partial, sequental stages• Early Production to confirm reserve and technology
Technology issues• Proven or newly applied technology• Patent for technology
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14%
81%
5%
Capex Estimate
Sub Sea Prod SystFLNGLogistic Base
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Proje
ct m
anag
emen
t
Equip
men
t
Bulk M
ater
ials
Mod
ule F
abrica
tion
Mod
ule In
stal
l & H
ook
upHull
Tank
Moo
ring S
yste
m
Tran
spor
tation
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
13.76%15.73% 15.29%
16.92%
4.55%
21.29%
5.00%3.15%
4.32%
FLNG Project cost COMPONENT
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Concern on the FLNGLiquefaction process in open and high volatile seaViability and safety margin of loading LNG at sea (need mooring system to stabilize Plant ship/barge)Loading of LNG and LPG to transport ship carrier (vertical and lateral movement of the sea – winds, current, wave)Operational and flexibility to deal with inert gas (CO2) or corosives(SO2)
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http://www.bakerinstitute.org/programs/energy-forum/publications/docs/NewEnergyTechGasSectors_EvolutionofMarkets.pdf/view?searchterm=floating%20LNG%20technology
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This figures are indication, some of which are still under
study
The prospect indication of Floating Production System as per 2009
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Latest dev’t in FLNG Project to – be : Masela Inpex
• The first gas discovery in Arafura Sea, Indonesia
• Gas reserves est 6 – 9 TCF
• Remote location, no major gas market & infrastructure (150 Km from Tanimbar island, 500 km from Aru Island
• Water depth 400 – 800 m
• Expect to be first LNG Project in Southern East Indonesia
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Excerpts from corp.
website
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When size matters
USS Blue Ridge (LCC -19)Flagship, US Seventh Fleet
Length 194 m, beam 32.9 m Length 500 m, width 82 m
FLNG , 1 x 4.5 MTPA
Football yard – as per FIFA standards :
Length 100 – 110 m, width 64 – 75 m
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Natuna : FLNG >> one- of the potential dev’t scenario
• Giant Reserves 222 TCF, high CO2 dry +/- 70%, or net reserve recoverable gas +/- 46 TCF
• to considerRemote location, no major gas market & infrastructure
• Water depth +/- 145 m• Gas Pipe line, FLNG or land
base LNG Plant open
Existing P/LP/L under constructionPotential P/L
Natuna Island
0 200
400
KM
600
Natuna D Alpha
Jakarta
West Natun
a M -I Border
Kerteh GP
P
JDA M
-T Border
Singapore
Ratchaburi
Rayong
Erawan
Bintulu
Arun
Vietnam
Cambodia
Batam
Existing P/LP/L under constructionPotential P/L
Natuna Island
0 200
400
KM
600
0 200
400
KM
600
Natuna D Alpha
Jakarta
West Natun
a M -I Border
Kerteh GP
P
JDA M
-T Border
Singapore
Ratchaburi
Rayong
Erawan
Bintulu
Arun
Vietnam
Cambodia
Batam
Distance from Natuna to Potential Markets
– Natuna Island 225 km
– National Border 520 km– Bintulu 450
km– Kerteh 790
km– Batam 880
km– Jakarta 1,340
km– Rayong 1,540
km
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Challenge for F/ LB LNG Plant
• LNG Plant Site Pipeline CoridorLiquefaction TrainsStorage TanksLoading terminal• Marine Base Jetty for berthing/offloadingStorage for drilling materialsGeneral bulk StorageLaydown / work areasAssembly of steel risersAccomodation• AirportFixed wing operationHelicopter operationCommunication centerAccomodationsMedical facilities
• Volume of Production , Plateau period and life time (need to have reasonable certainty ahead of developing scenario
• Location : Remote and almost in the middle of no where
• High CO 2 content for removing and treating
• High Capex required to develop fields, treating production and marketing of gas
• Required abundant volume of gas
• Technonolgy and Commercial Challenge
• Logistics Challenge
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FLNG sub components Concern
FEED Gas Receiving System
Capacity to separate feed gas, condensate and produced water, and temporarily materials without interruption operations
Gas Processing system Acid gas removal unit, dehydration unit, mercury removal unit, booster compressor as necessary
Liquifaction Processing system
Safety and reliability, technology risk, engineering design, operability, thermal efficiency, environmental considerations
Condensate Process system
Separate light component, control vapor pressure
Water Process System To lean, reclamate, recycle and reinjection at acceptable stdrd
Products Storage & Loading systems
Storage for LNG and condensate product and designing the efficient and safe offloading system
Hull & Mooring System Suitable to storage LNG, condensate, chemical and machinery rooms
Utility systems Power generators, fuel, steam and cooling sisytem, instruments, fire protection systems etc.
Living Quarters Control rooms, maintenance, accomodations, authority and security,recreational, heli deck ect
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AgendaOVERVIEW OF OFFSHORE GAS RESERVES : SHALLOW, DEEPWATER AND STRANDEDGAS RESOURCE ALLOCATIONACHIEVING SYNERGIC COOPERATION AND BUSINESS PARTICIPATIONPERSPECTIVE ON FLNG TECHNOLOGY AND DEVELOPMENTConcluding remarks
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Concluding remarks
More of petroleum reserves are laid in remote and deep sea
To monetize and economize it is technical and economical consideration
FLNG is one of alternatives to free and utilize stranded reserves
While such challenges can be well tacled and responded from business perspectives, the host Government measure
things far more and beyond direct economic project consideration
per se
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Achir’ul kalam
Thank youTerima kasihMaturnuwunMerdekaHorassss
slpurba@bpmigas.com
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Brief CVMr. Sampe L. Purba, born in 1963, currently holds position as Vice President for Program and Budgeting Management of PSC in BPMIGAS, a state legal owned institution supervising and managing all Production Sharing Contracts operating in Indonesia. His job mainly deal with management assessment of program, commercial and financial aspects of oil and gas business. He also deeply involves in evaluating of Project Finance dealing with international financial institution, LNG Project Finance, Taxation and Risk management matters.
Mr. Purba got his degree in Economics more than twenty years a go from The University of North Sumatera. He also holds a State Registered Accountant, and Post graduate degree in Finance – Commerce from The University of New South Wales and also completing his Business Law degree from a leading university in Indonesia. Mr. Purba attended also short course in National Resilience Institute to equip and broad his spectrum and perspectives in managing natural resources. Currently, Mr. Purba pursues his study on post graduate in diplomacy and business negotiations
As part of maintaining and updating his knowledge and sharing of experiences, Mr. Purba actively attends and delivers workshop, conferences and seminar domestic and abroad. He is an active members of Indonesia Accountant Association, Indonesia Petroleum Society and Association of International Petroleum Negotiators.
7 Apr 2023