INDONESIA’S OIL AND GAS INFRASTRUCTURE...
Transcript of INDONESIA’S OIL AND GAS INFRASTRUCTURE...
Kementerian ESDM Republik Indonesia
DIRECTORATE GENERAL OF OIL AND GAS
MINISTRY OF ENERGY AND MINERAL RESOURCES
REPUBLIC OF INDONESIA
TOKYO, JAPAN, 28 NOVEMBER 2017
INDONESIA’S OIL AND GAS INFRASTRUCTURE DEVELOPMENTPresented at JOGMEC Techno Forum 2017
Kementerian ESDM Republik Indonesia
46%
26%
23%
5%
2015166 MTOE
23%
25%
30%
22%
2025400 MTOE
31%
20%
25%
24%
20501.012 MTOE
Target in the
National Energy Policy (KEN)2025 2050
Role of Energy Driver of economic growth
Portion of Gas in Energy Mix 22% 24%
Energy Supply > 400 MTOE > 1.000 MTOE
Power Generation > 115 GW > 430 GW
Energy Elasticity < 1 < 1
Power/capita/year 2.500 kWh 7.000 kWh
Electrification Ratio 100% 100%
Renewable Energy
Oil
Gas
Coal
TARGET IN 2025
TARGETIN 2050
2015
Referring to Indonesia’s General Plan of National Energy (RUEN)
THE ROLE OF OIL AND GAS IN INDONESIA’S ENERGY MIX
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Proven : 3.3 Billion STB
Potential : 3.9 Billion STB
Total : 7.3 Billion STBOIL
OIL RESERVES
Production: 816 Thousand BOPD
(oil + condensates)
GAS
Proven : 101.2 TSCF
Potential : 42.8 TSCF
Total : 144 TSCF
GAS RESERVES
Production: 7.7 MMSCFD
PAPUA
111.86
184.64
2,331.49
1,092.85
303.81
1,324.61
1,219.52
526.22
45.43
110.33
100.25
7.56
0.80
7.52
12.92
49.87
5.23
8.04
14.75
2.60
16.73
19.03
Indonesia Oil & Gas Reserves
OIL (Thousand MMSTB)
GAS (TCF)
NAD
NORTH
SUMATERA
MID SUMATERA
SOUTH SUMATERA
NATUNA
WEST JAVA
EAST JAVA
SULAWESI
KALIMANTAN
MALUKU
WORKING ACREAGE : 280 PSCs
Exploration : 195 PSCs
Exploitation : 85 PSCs
OIL & GAS RESERVES
Production as of Mar 26th 2017
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UNCONVENTIONAL OIL & GAS
Resources
Coalbed Methane: 453.4 TCF
Shale Gas: 574.07 TCF
48 PSC CMB6 PSC Shale Gas
Kementerian ESDM Republik Indonesia
Managing Energy
sustainably in order to
support the continuity
of national economic
development
Accessible
Energy to users
in all regions
Cultivating the price of energy
affordably for all segments of
end users
The availability of energy
aimed to meet domestic
demand
Energy Regulations in Indonesia
Aiming to strengthen the national energy
resilient and sovereignty, our energy policy
are focus in 5 main pillars:
• Increasing of electrification ratio,
• Fair distribution on equality &
affordability,
• Sustainability, (Integrated resource
plan, priorities local energy
resources)
• Conducive investment & economic
growth, and
• Good governance & streamlining
bureaucracy and licensing.
ENERGY POLICY
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01NEW PARADIGM
Establishment of a new paradigm of energy sources as capital of the national development
02ENERGY ELASTISITY
Energy elasticity achievement shall be less than 1 (one) in 2025 that comply with the economic growth
03ENERGY INTENSITY
Reduction in final energy intensity of 1% (one percent) per year up to 2025
04ELECTRIFICATION RASIO
Achievement of Electrification Ratio of 85% (eighty five percent) in 2015 and close on 100% (one hundred percent) in 2020
05HOUSEHOLD GAS UTILIZATION RASIO
Achievement of the household gas utilization ratio of 85% (eighty five percent) in 2025
06ENERGY MIX
Achievement of optimal primary energy mix
(Article 9, Government Regulation 79/2014 on National Energy Policy)
NATIONAL ENERGY POLICY TARGET
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• Improvement of Cost Recovery System & Taxation (GR 27/2017 as a revision of GR 79/2010)
• Improvement of PSC System by Introducing the new Gross Split Scheme (Ministerial Regulation 52/2017)
• Improvement of recovery mechanism for sunk cost of the latest investment (MR 26/2017)
• Participating Interest 10% (MR 37/2016)
• Asset management for contract termination during exploration phase (revision of GR 35/2004)
• Performance based commitment (reform of firm commitment)
• Concept of stabilization clause to accommodate assumed and discharge principle
• Profit tax regulation in PSC Gross Split
• Regulation for eligible cost for tax calculation in PSC Gross Split
What has been done? What’s next?
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OIL & GAS POLICY REFORMS
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• Improvement of gas allocation, pricing, & utilization policy (Ministerial Regulation 06/2016)
• Gas prices for industries: petrochemical, fertilizer, steel (Ministerial Regulation 40/2016)
• Acceleration of utilization of gas for transportation (Ministerial Regulation 25/2017)
• Utilization and pricing of flare gas in upstream oil and gas (Ministerial Regulation No. 32/2017)
• Improvement of natural gas for power generation (Ministerial Regulation 45/2017)
• Downstream gas pricing
mechanism
• Pipeline gas policy
reform (revision of
Ministerial Regulation
19/2009)
• LNG import policy
• Gas governance
GAS & LNG POLICY REFORMS
What has been done? What’s next?
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Government
(40%)
Cost
Recovery1
(46%)
Contractor
(14%)
Government
(46%)
Contractor
(8%)
Tax
(6%)
Oil Production
(100%)
Cost Recovery PSC Gross Split PSC
Government
(57%)
Contractor (including cost)
(43%)
Oil Production
(100%)
Equity to be Split
(54%)
Total
Contractor
(54%)
Gro
ssN
et“CONTRACTOR’S COST EFFICIENCY ”
Split excluded tax
12 years average2Tax 40% (40% x 23% = 9%)
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GROSS SPLIT PSC BENEFIT :• Procurement system will be more
simple and efficient• Contractor can manage their cost
independently• More incentive for more risky block• Flexible and sensitive to oil price and
cumulative production
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ON GOING & UPCOMING UPSTREAM OIL & GAS PROJECTS
MASELAGas Reserves: 10.73 TCF
Investment: US $ 15-16 Billion
TANGGUH TRAIN 3Gas reserves 5.7 TCF
Investment: US $ 8 Billion
Production (Q2 2020): 700 MMSCFD
IDD BANGKAGas Reserves 100.41 bscf
Investment: US $ 8 Billion
Production: 110 MMSCFD (onstream)
BLOCK A ACEHGas Reserves: 563 bscf
Investment: US$ 1.3 Billion
Production: Q4 2017
JANGKRIK COMPLEX PROJECTGas Reserves: 2.27 TCF
Investment: US$ 4.1 Billion
Production (Q3 2017): 450 MMSCFD
MADURAProduction (Q1 2017): 110 MMSCFD
Investment: US$642Million
ANDE ANDE LUMUTEAST NATUNA
Production (Q1 2021): 25000 bopd
Gas Reserves: 46 TCF
CO2 Content: 72%
WASAMBOProduction (Q1 2017): 70 MMSCFD
Investment: US $ 55.2 million
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JAMBARAN TIUNG BIRUGas reserves: 97 bscf
CO2 Content: 34%
Investment US $ 2.2 Billion
Production (Q4 2019): 330 MMSCFD
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Oil Refinery Development Plan in the Next 10 Years
Regulations• Presidential Regulation 146/2015:
Refinery Development
• Ministerial Regulation 25/2016:
Privately Funded Oil Refineries
Target refinery capacity in 2025: 2 million BPD
National Fuel Oil Supply Demand
OIL REFINERY DEVELOPMENT
No Refinery Project Investment (billion US$)
1 GRR Tuban 12 – 15
2 GRR Bontang 8 – 11
3 RDMP Balikpapan 5.3
4 RDMP Balongan 1.27
5 RDMP Cilacap 4.5
6 RDMP Dumai 4.2
RDMP (existing refinery upgrade) GRR (new refinery)
RDMP
Balik-
papan
Stage 1
RDMP
Balongan
RDMP
Balikpapan
Stage 2
RDMP
Cilacap
RDMP
Dumai
GRR
Tuban
GRR
Bontang
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OIL REFINERY DEVELOPMENT
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BONTANGCapacity: 300 MBCD
Funding Scheme: Gov’t Assignment
Investor: Tender Awardee
Planned Op: 2024
TUBANCapacity: 300 MBCD
Funding Scheme: Gov’t Assignment
Investor: Pertamina-Rosneft
Planned Operation: 2024
BALIKPAPANCapacity: 360 MBCD
(Existing: 260 MBCD)
Complexity Index: 9
Planned Op: 2020
CILACAPCapacity: 370 MBCD
(Existing: 348 MBCD)
Complexity Index: 9
Planned Operation: 2023
DUMAICapacity: 300 MBCD
(Existing: 140 MBCD)
Complexity Index: 8
Planned Op: 2023
BALONGANCapacity: 280 MBCD
(Existing: 125 MBCD)
Complexity Index: 9
Planned Op: 2021
Grassroot Refinery
Refinery Upgrading
Private Refinery
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SITUBUNDOPT Kilanindo Golden Star
Capacity: 300 MBCD
Planned Op: 2024
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PADANG LAWASPT Indo Kilang Prima
Capacity: 6 MBCD
Planned Op: 2018
5PALEMBANG
PT PGRC
Capacity: 300 MBCD
Planned Op: 2020
PALEMBANGPT DEX
Capacity: 10 MBCD
Planned Op: 2019
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MINI OIL REFINERY DEVELOPMENTMARGINAL OIL FIELDS FOR MINI OIL REFINERY CLUSTERING
1. Cluster I – Sumatera Utara
2. Cluster II – Selat Panjang Malaka
3. Cluster III – Riau
4. Cluster IV – Jambi
MoEMRRegulation 22/2016 on Small Scale
Oil Refineries
PROD
(BOPD)
CLUSTER
I II III IV V VI VII VIII
2016 3,191 2,731 1,252 1,653 1,152 3,239 7,002 4,113
2022 3,253 4,419 4,079 5,728 2,801 878 2,653 197
5. Cluster V – Sumatera Selatan
6. Cluster VI – Kalimantan Selatan
7. Cluster VII – Kalimantan Utara
8. Cluster VIII – Maluku
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LPG STORAGE FACILITIES IN EASTERN INDONESIA
MANGGIS
AMPENAN
BIMA
BADASREO
ENDEWAINGAPU
MAUMERE
L. TUKA
KALABAHI
ATAPUPU
DILI
KUPANG
BITUNG
FAK - FAK
NABIRE
MERAUKE
JAYAPURA
BIAK
SORONG
MASOHI
LABUHA
TOLI - TOLI
MOUTONG
PARIGI
DONGGALA
POSO
GORONTALO
KOLONDALE
PALOPO
TAHUNA
PARE - PAREKOLAKA
LUWUK
KENDARI
RAHA
BAU -BAU
MAKASSAR
AMPANA
WAYAME
TOBELO
TERNATE
BANGGAI
SAUMLAKI
DOBO
TUAL
SERUI
MANOKWARI
RU VII. KASIM
BULA
NAMLEA
SANANA
KAIMANA
TIMIKA
HALMAHERA
LPG Storage Tank
TENAU
JAYAPURA
WAYAME
Investment Needed:
64.7 million USD
Total Capacity: 5,000 MT
Capacity: 2 x 1,000 MT & jettyInvestment: US$ 15.9 million
Capacity: 2 x 1,000 MT & jettyInvestment: US$ 15.2 million
Capacity: 2 x 1,000 MT & jettyInvestment: US$ 18.4 million
Capacity: 2 x 500 MT & jettyInvestment: US$ 15.2 million
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Kementerian ESDM Republik Indonesia
THE IMPORTANCE OF ENERGY BUFFER RESERVES
Increasing bargaining position regionally and globally (such as in trading oil/ product with other countries)
Ensuring energy security as the last resort in coping with energy supply gas in the case of energy crisis
crude import dependency (about 39%) and product (fuel 42% and LPG 63%) is increasing1
IMPORT route prone is influences by geopoliticof exporting countries2
Enhancing domestic oil / fuel reserves security (there is only operational reserves in the form of fuel for 21 – 23 days owned by Pertamina)
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Supporting national security enhancement to preserve energy supply stability6
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4.397 4.416 4.202
4.008 3.820 3.775 3.681
4.336 4.078
3.631
3.402 3.237
3.090 2.860 2.618
1.480 1.466 1.513
2.341 2.527
2.913
3.323 3.379 3.267
3.550
3.774 3.632
3.882 3.997 3.855
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500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
4.500
5.000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
BB
TUD
Ekspor Domestik
Average growth of domestic gas demand (2003 – 2016): 9%
Portion of domestic gas demand in 2017 : 58%
Status: as of June 2017
Power Generation
13,67%
Fertilizer11,15%
Industry23,53%
Oil Lifting2,77%
City Gas0,05%
CNG for Vehicles0,08%
Pipeline Gas
Export12,62%
LNG Export28,49%
Domestic LNG
5,53%
Domestic LPG
2,11%
Utilization of Gas in Indonesia (2017)
Export Domestic
UTILIZATION OF GAS
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REGION I
172
233
154,31124,8
2016 2030 2113
337495,4 641
2016 2030
2762
4073
1636,2
3063
2016 2030
REGION II
REGION IV
163,2
473
133,39 173
2016 2030
REGION III515
1047
545,6758
2016 2030
REGION V
1275
3147
416,54 555
2016 2030
REGION VI
Supply
Demand
Region I : Aceh & North Sumatera
Region II : Sumatera (South & Central), Riau Islands, West Java
Region III : Central Java
Region IV : East Java & Bali
Region V : East Kalimantan
Region VI : Sulawesi, Maluku, Papua
• There is an oversupply of gas in East Indonesia & Kalimantan
• The largest gas demand exists in West Indonesia (Java & Sumatera)
GAS SUPPLY DEMAND PER REGION (2016 – 2030)
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EXISTING GAS INFRASTRUCTURE
Description
Non Pipeline Gas Infrastructure Facilities
Existing FSRU
Ongoing FSRU
Planned FSRU
Existing LNG Plant
Planned LNG Plant
Existing LPG Plant
Planned LPG Plant
Existing CNG Filling Station
Planned CNG Filling Station
Existing Receiving Terminal
Regasification Terminal
Existing CNG Station
Existing Open Access Pipeline
Ongoing Open Access Pipeline
Planned Open Access Pipeline
Existing Own Use Pipeline
Planned Own Use PipelineExisting Dedicated Upstream Pipeline
Planned Dedicated Upstream Pipeline
Existing Distribution Pipeline
Ongoing Distribution Pipeline
Planned Distribution Pipeline
Existing Household Gas Network
Planned Household Gas Network
Gas Transmission & Distribution Network
Kementerian ESDM Republik Indonesia
NATIONAL GAS INFRASTRUCTURE ROADMAP UNTIL 2030
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Aggressive infrastructure development in eastern part of Indonesia
Description
Non Pipeline Gas Infrastructure Facilities
Existing FSRU
Ongoing FSRU
Planned FSRU
Existing LNG Plant
Planned LNG Plant
Existing LPG Plant
Planned LPG Plant
Existing CNG Filling Station
Planned CNG Filling Station
Existing Receiving Terminal
Regasification Terminal
Existing CNG Station
Existing Open Access Pipeline
Ongoing Open Access Pipeline
Planned Open Access Pipeline
Existing Own Use Pipeline
Planned Own Use PipelineExisting Dedicated Upstream Pipeline
Planned Dedicated Upstream Pipeline
Existing Distribution Pipeline
Ongoing Distribution Pipeline
Planned Distribution Pipeline
Existing Household Gas Network
Planned Household Gas Network
Gas Transmission & Distribution Network
Kementerian ESDM Republik Indonesia
TOTAL POWER: 13,432 MW
TOTAL GAS NEEDED: 1,100 MMSCFD
2,867 MW
267 MMSCFD
1,091 MW
86 MMSCFD
6,754 MW
423 MMSCFD
1,830 MW
147
MMSCFD
450 MW
38
MMSCFD
440 MW
48
MMSCFD
35,000 MW Electricity Project
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LNG Krueng Raya – Nias
Target: 2018
5. FSRU Belawan
Target: 2020
3*
2*
LNG Bangka Belitung – Pontianak
Target: 2020
6. FSRU Muara Tawar
Target: 20197. LNG Terminal Gresik
Target: 2021
8. FSRU Gorontalo
Target: 2019
4* LNG Maluku – Papua
Target: 2019
LNG Central Indonesia
Target: 2019
1*
PLN: Indonesia’s state owned national electricity company
*Scope of projects (1 – 4) include: LNG transport, storage & regasification facilities, jetty, and pipeline
LNG SUPPLY & INFRASTRUCTURE PROJECTS FOR POWER GENERATION PREPARED BY PLN
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NATURAL GAS UTILIZATION IN EASTERN INDONESIA USING VIRTUAL PIPELINE
Gas distribution
using Virtual
Pipeline Scheme
Realization: FSU Benoa,
Bali
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LNG TERMINAL BENOA
Bringing LNG from Borneo to Bali Island
INDONESIA’S 1ST MINI LNG FOR POWER PLANT
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- Jack Up Rig
- Jack Up Barge
- Self Elevating
Drilling Unit
Semi
Submersible Rig
Deepwater Drill
Ship
Facilities that are not readily available/very limited in the domestic market:
Floating Production
Storage and Offloading(domestic investment is still
limited)
CHALLENGES : OIL & GAS FACILITIES
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FLOATING POWER PLANTS
© Mitsubishi Heavy Industries
TECHNOLOGICAL CHALLENGES
INTEGRATED FLOATING MINI LNG
AND POWER
MINI LNG CARRIER
LNG MINI FLOATING STORAGE &
REGAS UNIT
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Strategic projects in Indonesia’s oil & gas industry which include:
• Upstream projects to boost reserves & production
• Midstream & downstream projects to make energy accessible
from West to East Indonesia
CLOSING REMARKS
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Require significant technology to solve related challenges,
accelerate development, and promote economic growth.
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To boost the role of gas as a driver for economic growth, Indonesia
needs aggressive infrastructure development, particularly for LNG
utilization for power generation in Eastern Indonesia.3
Kementerian ESDM Republik Indonesia
www.migas.esdm.go.id
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