1
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
5th Seminar of the PPM Project
The petroleum policy and management projectThe petroleum policy and management projectof the Indonesia case study of the Indonesia case study
Bangkok, 26Bangkok, 26--29 July 200629 July 2006
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
Presentation outline
Introduction and the implementation of the Indonesia PPM Case Study
Geology of the Kutai Basin and Hydrocarbon Resource Assessment
Economic Analysis, Licensing, and Fiscal Condition
Results and Recommendations
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
The mature The mature KutaiKutai Basin, East KalimantanBasin, East Kalimantan
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
National Coordinator
National Project Coordinator Commitee
MIGAS BP MIGAS PUSDIKLAT MIGAS PERTAMINA Oil Coy’s
Project Coordinator
PROJECT ORGANIZATION OF THE CASE STUDYPROJECT ORGANIZATION OF THE CASE STUDY
CCOP / TS
PR of Indonesia to CCOP
PPPTMGB “LEMIGAS”
2
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
National CoordinatorsNational Coordinators:Sasongko HadipandoyoSasongko Hadipandoyo LEMIGASLEMIGASBambang WicaksonoBambang Wicaksono LEMIGASLEMIGAS
Core Members: Core Members: 1.1. BarlianBarlian YulihantoYulihanto LEMIGASLEMIGAS2.2. AgusAgus GunturGuntur LEMIGASLEMIGAS3.3. SilambiSilambi PalambaPalamba LEMIGASLEMIGAS4.4. Jonathan Jonathan SetyokoSetyoko LEMIGASLEMIGAS5.5. AchmadAchmad NurdjajadiNurdjajadi LEMIGASLEMIGAS6.6. SuprijantoSuprijanto LEMIGASLEMIGAS7.7. DoddyDoddy PribadiPribadi DG DG MigasMigas8.8. BayuBayu WahyudionoWahyudiono DG DG MigasMigas9.9. Abdullah Abdullah SodikSodik BPMIGASBPMIGAS10.10. DjokoDjoko SumalyoSumalyo BPMIGASBPMIGAS11.11. SutoyoSutoyo PusdiklatPusdiklat MigasMigas12.12. YohannesYohannes P. P. KoesoemoKoesoemo PusdiklatPusdiklat MigasMigas
CASE STUDY TEAM (CORE TEAM)CASE STUDY TEAM (CORE TEAM)
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
Supporting Members: Supporting Members:
1.1. RidaRida MulyanaMulyana LEMIGASLEMIGAS2.2. TunggalTunggal LEMIGASLEMIGAS3.3. Yusep C. KartiwaYusep C. Kartiwa LEMIGASLEMIGAS4.4. Andi RuswandiAndi Ruswandi LEMIGASLEMIGAS5.5. SundoroSundoro LEMIGASLEMIGAS6.6. SuprayitnoSuprayitno MunadiMunadi LEMIGASLEMIGAS7.7. Bambang Bambang WiyantoWiyanto LEMIGASLEMIGAS8.8. Sri Sri WijayaWijaya LEMIGASLEMIGAS9.9. IsnawatiIsnawati LEMIGASLEMIGAS10.10. AnjarAnjar SumarsonoSumarsono LEMIGASLEMIGAS11.11. FinaFina RiandraRiandra LEMIGASLEMIGAS12.12. Bambang Bambang WidarsonoWidarsono LEMIGASLEMIGAS13.13. SugihardjoSugihardjo LEMIGASLEMIGAS14.14. LettyLetty BriolettyBrioletty LEMIGASLEMIGAS15.15. NurkameliaNurkamelia LEMIGASLEMIGAS
CASE STUDY TEAM (Supporting team)CASE STUDY TEAM (Supporting team)
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
16.16. SigitSigit PudiartoPudiarto LEMIGASLEMIGAS17.17. SupriyatnoSupriyatno LEMIGASLEMIGAS18.18. SeptiSepti AnggraeniAnggraeni LEMIGASLEMIGAS19.19. SupriadiSupriadi LEMIGASLEMIGAS20.20. Diana Diana DwiyanartiDwiyanarti LEMIGASLEMIGAS21.21. HermansyahHermansyah LEMIGASLEMIGAS22.22. LaodeLaode SulaimanSulaiman LEMIGASLEMIGAS23.23. Bob YulianBob Yulian BPMIGASBPMIGAS24.24. SulistyaSulistya HastutiHastuti BPMIGASBPMIGAS25.25. Eddy Eddy HermantoHermanto BPMIGASBPMIGAS26.26. Eddy M. Eddy M. SuharyadiSuharyadi BPH MIGASBPH MIGAS27.27. Sri Sri WahyuWahyu PurwantoPurwanto BPH MIGASBPH MIGAS28.28. HazuardiHazuardi PusdiklatPusdiklat MigasMigas29.29. AsyikAsyik KurniawanKurniawan PusdiklatPusdiklat MigasMigas30.30. Teguh Teguh WibowoWibowo PERTAMINAPERTAMINA
CASE STUDY TEAM (Supporting team)CASE STUDY TEAM (Supporting team)
Supporting Members: Supporting Members:
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
Participations to other Case StudiesParticipations to other Case Studies
INSTITUTION CAM CHN PHI PPM TOTAL
LEMIGAS 4 7 4 3 18
3
6
3
5
TOTAL 12 10 5 8 35
DG MIGAS - 1 2
BPMIGAS 1 3 - 2
BPH MIGAS 3 - - -
PUSDIKLATMIGAS 4 - - 1
3
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
Participants of the Indonesia PPM eventsParticipants of the Indonesia PPM events
WS-1 WS-2 WS-3 WS-4 EV-1 EV-2 TotalRESOURCE PERSON 8 7 7 7 1 1 31
101393117210
THAILAND 2 2 2 2 - 1 97142323069
CAMBODIA 2 2 2 2 1 1CHINA 3 3 3 2 1 1INDONESIA 13 14 22 19 15 10KOREA 1 5 2 2 - 1MALAYSIA - 2 2 2 - 1PNG 1 1 - - - -PHILIPPINES 2 2 2 2 1 1
VIETNAM - 2 2 2 - 1CCOP/TS 3 3 2 2 2 2ORGANIZER 3 4 8 3 2 3TOTAL 38 47 54 45 23 23TOTAL Member Countries 11 19 15 14 3 7
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
Project activitiesProject activities
PPM-CCOP SEMINARS
EXPERT VISITS
WORKSHOPS
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
Visit Venue Date Topic
Expert Visit I Jakarta 6-9 Dec 2004 • Short Course on Economic Modeliny for Oil and Gas Fields and Prospects
Expert Visit II Carita 13-14 Dec 2005 • Short Course on Deepwater Technology
Implementation of the Expert VisitsImplementation of the Expert Visits
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
Course on Economic Modeling for Oil and Course on Economic Modeling for Oil and Gas Fields and ProspectsGas Fields and Prospects
Expert Visit 1Expert Visit 1
Aim of the CourseAim of the CourseFurther understanding on the economic modeling of Further understanding on the economic modeling of petroleum projects, both prospects and developed oil petroleum projects, both prospects and developed oil fields.fields.
More practice on the use of More practice on the use of GeoXGeoX software, in the software, in the FullCycleFullCycle analysis, and applying the Fiscal System.analysis, and applying the Fiscal System.
Number of ParticipantsNumber of Participants :: 18 persons18 personsVenueVenue :: LEMIGAS Office, JakartaLEMIGAS Office, JakartaDateDate : : 66--9 December 20049 December 2004
4
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
Expert Visit 2Expert Visit 2
Aim of the CourseAim of the Course
Number of ParticipantsNumber of Participants :: 18 persons18 personsVenueVenue :: CaritaCarita Beach, West JavaBeach, West JavaDateDate : : 1313--14 December 200514 December 2005
Introducing the history and trends of the deepwater Introducing the history and trends of the deepwater development and the key of deepwater technology issues.development and the key of deepwater technology issues.Get an overview about Get an overview about SubseaSubsea Production Systems and Production Systems and the the PlatformlessPlatformless Developments, Offshore Drilling, Developments, Offshore Drilling, Deepwater Drilling and CompletionDeepwater Drilling and CompletionAnother overview about the Deepwater Industry Structure, Another overview about the Deepwater Industry Structure, and the Authority and Management issues.and the Authority and Management issues.
Short Course on Deepwater TechnologyShort Course on Deepwater Technology
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
5
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
Workshop Venue Date Topic
Workshop I Yogyakarta - Cepu
21-26 Jul 2003 • General overview of the Kutai Basin Case Study
• Petroleum activities in the Kutai Basin
Workshop II Bandung 8-13 Mar 2004 • POD, part 1• Fiscal System• Economical Analysis
using GeoX softwareWorkshop III Surabaya 18-22 Jul 2005 • POD, part 2
• Marginal Field
Workshop IV Jakarta 13-17 Jun 2006 • IOR/EOR• The Role of Govt to
Attract New Investment
Implementation of the WorkshopsImplementation of the Workshops
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
General overview of the General overview of the KutaiKutai Basin Case Study and Basin Case Study and Petroleum activities in the Petroleum activities in the KutaiKutai BasinBasin
Workshop IWorkshop I
Workshop ContentsWorkshop Contents
Number of ParticipantsNumber of Participants :: 38 persons38 personsVenueVenue :: Yogyakarta Yogyakarta -- CepuCepuDateDate : : 2121--26 July 200326 July 2003
Introduction to local basin geology and petroleum historyIndustry presentations on field developmentsResource assesment, prospect and play analysisCCOP guidelines on Resource Classification and RiskingGeoX training and group excersises
6
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
7
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
POD, Fiscal System, and Economical Analysis using POD, Fiscal System, and Economical Analysis using GeoXGeoX
Workshop IIWorkshop II
Number of ParticipantsNumber of Participants :: 47 persons47 personsVenueVenue :: BandungBandungDateDate : : 88--13 13 MaretMaret 20042004
Field developmentsFiscal SystemPetroleum economicsEconomical analysis using GeoX/gFullCycle on real data
Workshop ContentsWorkshop Contents
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
8
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
POD (part 2)POD (part 2)Marginal FieldMarginal Field
Workshop IIIWorkshop III
Number of ParticipantsNumber of Participants :: 54 persons54 personsVenueVenue :: SurabayaSurabayaDateDate : : 1818--22 July 200522 July 2005
POD (2): Aspect of the Government PolicyMarginal Field:
Is Indonesia running out of oil?Tools to manage the challengesIncentives
Field developments and Technical solutions
Workshop ContentsWorkshop Contents
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
9
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
Workshop IVWorkshop IV
Number of ParticipantsNumber of Participants :: 45 persons45 personsVenueVenue :: JakartaJakartaDateDate : : 1313--17 June 200617 June 2006
IOR/EOR Technologies:Challenges to increase productionTechnologies: LEMIGAS – VSIT – Chevron –MC - Norway
The Government Role to attract new investment in a mature basins : Migas – MC - Norway
Workshop ContentsWorkshop Contents
IOR/EOR Technology and The Role of Government to IOR/EOR Technology and The Role of Government to Attract New Investment in a Mature BasinAttract New Investment in a Mature Basin
10
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
11
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
Geology of the Geology of the KutaiKutai Basin and Basin and Hydrocarbon Resource AssessmentHydrocarbon Resource Assessment
12
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
Geology of the Geology of the KutaiKutai BasinBasinandand
Hydrocarbon Resource AssessmentHydrocarbon Resource Assessment
LEMIGAS
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
• INTRODUCTION
• GEOLOGY OF KUTEI BASIN
• PETROLEUM SYSTEM
• RESOURCES ASSESMENT
• SUMMARY
OUTLINESLEMIGAS
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
KUTAI BASINKUTAI BASIN
Sediment thickness up to 14 Sediment thickness up to 14 km in the deepest partkm in the deepest part
The largest and the deepest The largest and the deepest Tertiary basin in western Tertiary basin in western Indonesia. Known as one of Indonesia. Known as one of prolific oil & gas bearing basin in prolific oil & gas bearing basin in IndonesiaIndonesia
Exploration history began in Exploration history began in the late 19the late 19thth century, followed century, followed by discovery of by discovery of SangaSanga--SangaSanga in in 1897, Balikpapan in 1898, 1897, Balikpapan in 1898, SemberahSemberah--PelarangPelarang in 1906, in 1906, and and SambojaSamboja in 1908. The latest in 1908. The latest discovery is West Seno in 2001discovery is West Seno in 2001
Occupies 165,000 sq. km in Occupies 165,000 sq. km in the offshore and onshore the offshore and onshore area of East Kalimantanarea of East Kalimantan
INTRODUCTIONLEMIGAS
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
TECTONIC SETTINGTECTONIC SETTING
The main structural geology The main structural geology feature is feature is SamarindaSamarindaanticlinoriumanticlinorium
The Northern part of the basin The Northern part of the basin are bounded by NWare bounded by NW--SE trending SE trending MangkaliatMangkaliat Fault Zone and Fault Zone and AdangAdang--PaternosferPaternosfer fault in the southern fault in the southern partpart
GEOLOGY OF KUTAI BASINLEMIGAS
13
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
STRATIGRAPHYSTRATIGRAPHY
General General StratigraphicStratigraphic Column of Column of KutaiKutai BasinBasin
The oldest sedimentary The oldest sedimentary rocks is rocks is TanjungTanjung Group Group that deposited during that deposited during Middle to Late Middle to Late EosenEosen in in non marine to shallow non marine to shallow marine environmentsmarine environments
Most of the sediment Most of the sediment were deposited in were deposited in deltaic deltaic enviromentenviroment, , especially in the late especially in the late Tertiary TimeTertiary Time
GEOLOGY OF KUTAI BASINLEMIGAS
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
SOURCE ROCK POTENTIALParalic/delta/restricted shallow marine carbonaceous shales of the Tanjung, Pamaluan, and Balikpapan Formations.
SOURCE ROCK POTENTIALParalic/delta/restricted shallow marine carbonaceous shales of the Tanjung, Pamaluan, and Balikpapan FormationsFormations.
RESERVOAR POTENTIALEocene Tanjung FormationCarbonate facies of the Berai Formation Equiv. and Bebulu FormationMiocene deltaic sediments of Balikpapan and Kampung Baru Formation
RESERVOAR POTENTIALEocene Tanjung FormationCarbonate facies of the Berai Formation Equiv. and Bebulu FormationMiocene deltaic sediments of Balikpapan and Kampung Baru Formation
SEAL POTENTIALOligocene shalesIntraformational seal within deltaic sediments of Late Tertiary Sediments
SEAL POTENTIALOligocene shalesIntraformational seal within deltaic sediments of Late Tertiary Sediments
PETROLEUM SYSTEMLEMIGAS
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
TRAP POTENTIAL
Structural trapStratigraphic/structural trap (Carbonate buildup)Clastic stratigraphic traps
TRAP POTENTIAL
Structural trapStratigraphic/structural trap (Carbonate buildup)Clastic stratigraphic traps
HYDROCARBON GENERATION & MIGRATION
First Hydrocarbon generation was inferred at Early Miosen Time Migration began around Middle Miocene time until present dayMigration pathway through up-dip and vertical faults
HYDROCARBON GENERATION & MIGRATION
First Hydrocarbon generation was inferred at Early Miosen Time Migration began around Middle Miocene time until present dayMigration pathway through up-dip and vertical faults
PETROLEUM SYSTEMLEMIGAS
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case StudyGeneral Petroleum System Chart of Kutai Basin
PETROLEUM SYSTEMLEMIGAS
14
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
Oil Companies in the Kutai BasinNo. Company Block StatP-16 PERTAMINA Sangata Prod
ExpExpProd
33 Total Donggala ExpProdExpProdProdExpExpProdExpProdExpExpExpExp
01 Amerada Tanjung Aru15 ENI Muara Bakau21 Inpex Attaka
34 Total Mahakam35 Total Saliki36 Total Tengah37 Unocal E. Kalimantan38 Unocal Ganal39 Unocal Rapak41 Unocal Makassar Str42 Unocal Sesulu43 Vico E. Kalimantan44 Zodan NV Popodi45 Zudavi NV Papalang46 Eksindo Bontang47 Elnusa Bangkanai
LEMIGASRESOURCE ASSESSMENT
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
5 blocks of the oil companies 5 blocks of the oil companies have mapped plays and lead have mapped plays and lead in the area during 2003in the area during 2003--20042004
Bangkanai Block
Rapak Deep Water Block
Sangasanga Block
Mahakam Block
Ganal Deep Water Block
BangkanaiBangkanai BlockBlock
RapakRapak Deep Water Deep Water BlockBlock
SangasangaSangasanga BlockBlock
Mahakam BlockMahakam Block
GanalGanal Deep Water BlockDeep Water Block
Others are in the exploration stageOthers are in the exploration Others are in the exploration stagestage
LEMIGASRESOURCE ASSESSMENT
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
IN PLACE
OIL GAS(MMSTB) (BSCF)
HYPOTHETICAL (Mapped) 8,281 55,065
SPECULATIVE (Unmapped)SPECULATIVE (Unmapped) 15,20015,200 30,91630,916
TOTAL 23,481 85,981
UNDISCOVERED RESOURCES
RESOURCE
The hypothetical inThe hypothetical in--place resource was resulted from 93 P/L, place resource was resulted from 93 P/L, coming from 13 Block that operated by 6 Companies. coming from 13 Block that operated by 6 Companies.
The speculative inThe speculative in--place resources from the Play Analysis and place resources from the Play Analysis and calculation by using calculation by using GeoXGeoX verver. 5.2 are 15,200 MMSTB Oil and . 5.2 are 15,200 MMSTB Oil and 30,916 BSCF Gas30,916 BSCF Gas
The total InThe total In--Place Resources of Place Resources of KutaiKutai Basin are 23,481 MMSTB Oil Basin are 23,481 MMSTB Oil and 85,981 BSCF Gasand 85,981 BSCF Gas
RESOURCE ASSESSMENTLEMIGAS
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
Kutai Basin is the largest and the deepest Tertiary Basin in Western Indonesia. It is a mature prolific oil and gas bearing basin.
Hydrocarbon play in the Kutai basin can be divided into Middle – Upper Eocene play, Oligocene play, and Middle Miocene – Pliocene Play. Most of oil and gas accumulation comes from Middle Miocene – Pliocene Play
The total In-Place Resources of Kutai Basin are 23,481 MMSTB Oil and 85,981 BSCF Gas
Kutai Basin is the largest and the deepest Tertiary Basin in Western Indonesia. It is a mature prolific oil and gas bearing basin.
Hydrocarbon play in the Kutai basin can be divided into Middle – Upper Eocene play, Oligocene play, and Middle Miocene – Pliocene Play. Most of oil and gas accumulation comes from Middle Miocene – Pliocene Play
The total In-Place Resources of Kutai Basin are 23,481 MMSTB Oil and 85,981 BSCF Gas
SUMMARYLEMIGAS
15
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
THANK YOU
Orang Utan from Mahakam River
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
LICENSING STRATEGYLICENSING STRATEGY
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
DevelopmentMEMR / MIGAS
MEMR / MIGASand
Other Ministries
Executing BodyBP MIGAS
MEMR / MIGASand
Other Ministries
Regulatory BodyBPH MIGAS
Oil and Gas Business ActivityConducted by Permanent Establishment / Business Entity
MEMR : Ministry of Energy and Mineral ResourcesMIGAS : Directorate General of Oil and Gas
UPSTREAM DOWNTREAM
SUPERVISION
Oil and Gas ReservesControlled by the State
Oil and Gas Business ActivityControlled by the Government
MANAGEMENT STRUCTURE OF OIL AND GAS BUSINESS ACTIVITYMANAGEMENT STRUCTURE OF OIL AND GAS BUSINESS ACTIVITY
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
PROMOTION FOR PETROLEUM EXPLORATIONPROMOTION FOR PETROLEUM EXPLORATION
Based on the Oil and Gas Law No. 22/2001, hydrocarbon resources be made available for domestic use in an effective and efficientmannerGOI has the authority to mine, promote and assign contract areas, determine contractors to explore and develop the resources within the area in accordance with a cooperation contractTo benefit both parties, the GOI sets the type and terms of the cooperation contract and they will dependent on the resource potential of each contract areaBPMIGAS has been authorized to sign the cooperation contract andto manage of the petroleum operations
16
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
MAIN POINTS OF COOPERATION CONTRACTMAIN POINTS OF COOPERATION CONTRACT
Contractor provides all funds, technological expertise and has to have the ability the necessary abilities, and take all risks in the exploration.
The period of exploration is six (6) years and maybe extended for another final four (4) years. If commercial production is found, the contract could be for thirty (30) years.
Contractor is obliged and required to relinquish the area in stages.
Contractor is required to make firm written commitments for the first three (3) years of the exploration period; and during which time the contractor has to keep and maintain its majority interest in the contract area.
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
PROCEDURE TO ACQUIRE A BLOCKPROCEDURE TO ACQUIRE A BLOCK
REGULAR TENDERREGULAR TENDER
DIRECT OFFERDIRECT OFFER
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
PROCEDURE TO ACQUIRE A BLOCK PROCEDURE TO ACQUIRE A BLOCK IN REGULAR TENDERIN REGULAR TENDER
The time schedule to be tendered through an The time schedule to be tendered through an announcement by the Governmentannouncement by the Government
At least once in a year with the window for evaluation At least once in a year with the window for evaluation period for the contractor within 5period for the contractor within 5--6 months6 months
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
Block is offered by Government based on MIGAS study, 10-15 blocks every yearOpen to allCommonly High risk, no commercial discoveryOnshore or offshore, Conventional area or frontier areaNeed exploration commitment (drilling well in the first 3 year commitment)In June 2005 : 14 blocks offered by MIGAS, the award announcement has not been madeCost :
• Bid info : $ 5000• Data Package : min $ 20,000• Signature bonus : min $ 1,000,000
REGULAR TENDER REGULAR TENDER
Min $ 1,025,000
17
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
PROCEDURE TO ACQUIRE A BLOCK PROCEDURE TO ACQUIRE A BLOCK IN DIRECT OFFER TENDERIN DIRECT OFFER TENDER
AVAILABLE BLOCKSAVAILABLE BLOCKS
Remaining and available unsold blocks from previous Remaining and available unsold blocks from previous bidding round. bidding round.
PROPOSED BY INTERESTED INVESTORPROPOSED BY INTERESTED INVESTOR
Block is prepared and proposed by interested company. Block is prepared and proposed by interested company. MIGAS will evaluate the proposal and prepare the terms and MIGAS will evaluate the proposal and prepare the terms and conditions.conditions.
JOINT STUDY BY INTERESTED INVESTORJOINT STUDY BY INTERESTED INVESTOR
Block is prepared and designed based on the result of the Block is prepared and designed based on the result of the joint study between MIGAS and interested companyjoint study between MIGAS and interested company
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
Two types :Proposed Unsold block 16 remaining blocks for 2006Proposed by interested company:
with Joint Study First Right Refusalwithout Joint Study
All Companies applying for the block shall propose and conduct presentation to Migas, covering technical assessment of the block potential and company profile. Low risk to High risk, no commercial discovery (sometimes there is)Onshore or offshore, Conventional area or frontier area, need exploration commitment (drilling well in the first 3 year commitment)In June 2005 : 13 blocks offered by MIGAS, Evaluation period from announcement date to bid submission is one (1) month, the awardshave signed contract in October 2005Cost : - Bid info : $ 5000
- Joint study : $ 50,000-$100,000- Signature bonus : min $ 1,000,000
DIRECT OFFER TENDER DIRECT OFFER TENDER
Min $ 1,105,000
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
Sulaw esi3% Timor
1%South Sumatra
20%
Natuna Sea5%
North Sumatra9%
Central Sumatra7%
Irian Jaya14%
Java21%
Kalimantan20%
ACTIVE BLOCKS BY REGION ACTIVE BLOCKS BY REGION TOTAL = 194 BLOCKTOTAL = 194 BLOCK
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
ACREAGE TO BE OFFERED YEAR 2005ACREAGE TO BE OFFERED YEAR 2005--20062006
18
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
Cakalang
Lampung I & II
East Bawean I & II
Damplas
Balaisang
SurumanaPasangkayu
Kamrau
Buton I
Buton II
BaronangKrapu
Open Tender 2005 (14 Blocks, 4 Blocks Awarded)2 June 2006
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
Indonesian Unsold Block 2006Indonesian Unsold Block 2006
Tigau
Mentana
Segaf
BigaTaritip
Janggerau
EnrekangPolewali
Offshore Rote IOffshore Rote II
Onshore/Offshore SelaruOffshore Babar
Amborip BlockI II III
IVVVIOffshore NE_Madura V
East KangeanNorth Bali IIUjungkulon Block
Onshore/Offshore Lhokseumawe
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
FISCAL REGIMEFISCAL REGIME
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
GENERAL CONDITIONSGENERAL CONDITIONS
All existing mineral oil and gas within the statutory mining territory of Indonesia are national richest controlled by the State.
The government holds ‘exclusive authority to mine’.
The government established the ‘Executive Agency for Upstream Oil & Gas Business Activities’ (BPMIGAS).
Business entities conduct oil and gas business based on cooperation contracts with BPMIGAS, mostly in the form of Production Sharing Contract (PSC).
The PSC contracting parties are ‘Contractor’ and ‘BPMIGAS’.
The PSC shall prevent the government from any liabilityarising from the oil & gas business.
19
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
PRODUCTION 100%
INVESTMENT CREDIT
MAX COSTRECOVERY : 100%
FTP 10%
EQUITY TO BE SPLIT
INDONESIA SHARE
CONTRACTOR TAKE
TAX 44%
DMO
INDONESIA TAKE
TAXABLE INCOME
CONTRACTOR SHARE
(+)
(-)
(+)(+)
(-)
(+)
(-)
(-)
(-)
(-)
(+)
(+)
(+)DMO FEE
INDONESIA PSCINDONESIA PSC
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
FISCAL TERMFISCAL TERM
1. First Trance Petroleum
2. Tax Structure
3. Sharing Split
4. Investment Credit
5. Domestic Market Obligation
6. Cost Recovery
(Capital & Non-Capital Expenditures)
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
Sharing Split
Basic Concept Basic Concept –– Sharing of ProductionSharing of Production
100%
100%
Sharing Split
Sharing Split Sharing Split
( subject to Indonesian income tax)( subject to Indonesian income tax)
BPMIGAS Share
Contractor Share
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
FIRST TRANCHE PETROLEUMFirst Tranche Petroleum of 20% deducted before the recovery of Investment Credit and Operating CostsFTP shared between BPMIGAS and CONTRACTORDesigned to ensure the minimum income for the State
TAX STRUCTUREContractor pays the income taxExcluded other taxes and levies
45%20%
35%20%
30%20%
Corporate Tax (CT)Dividend Tax (DT)
Taxable Income 100%Corporate Tax Dividend Tax: DT(100%-CT)
Effective Tax Rate
INCOME TAX STRUCTURE
45%11%56%
35%13%48%
30%14%44%
Prior to198419841994
45%20%
35%20%
30%20%
Corporate Tax (CT)Dividend Tax (DT)
Taxable Income 100%Corporate Tax Dividend Tax: DT(100%-CT)
Effective Tax Rate
INCOME TAX STRUCTURE
45%11%56%
35%13%48%
30%14%44%
Prior to198419841994
FISCAL TERMS FISCAL TERMS -- 11
20
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
SPLIT
Sharing Splits include tax component (split before tax, gross split)Applicable to FTP, and Domestic Market Obligation (DMO) Standard Sharing Splits as follows:
INVESTMENT CREDITinvestment credit: 17% of the capital investment costs required for production facilities commencing in the earliest production Year
30/(100 - 56) = 68.1818%30/(100 - 48) = 57.6923%30/(100 - 44) = 53.5714%
15/(100 - 56) = 34.0909%15/(100 - 48) = 28.8462%15/(100 - 44) = 26.7867%
Contractor Split(before tax)
31.8282%42.3077%46.4286%
56%48%44%
70/30
65.0909%71.1538%73.2133%
56%48%44%
85/15
BPMIGAS Split(before tax)
Tax Rate
After Tax Split
30/(100 - 56) = 68.1818%30/(100 - 48) = 57.6923%30/(100 - 44) = 53.5714%
15/(100 - 56) = 34.0909%15/(100 - 48) = 28.8462%15/(100 - 44) = 26.7867%
Contractor Split(before tax)
31.8282%42.3077%46.4286%
56%48%44%
70/30
65.0909%71.1538%73.2133%
56%48%44%
85/15
BPMIGAS Split(before tax)
Tax Rate
After Tax Split
FISCAL TERMS FISCAL TERMS -- 22
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
Fiscal TermsFiscal Terms--33DOMESTIC MARKET OBLIGATION (DMO)
Contractor is to sell and deliver a portion of the share
DMO = 25% x Sharing Split x Production DMO Price: US$/bbl, or % of FOB as stated in the contractrelieved when operating cost is unrecovered
COST RECOVERY consist of :
• current Year non-capital costs,
•current Year’s depreciation for Capital Costs, and
• unrecovered Operating Costs of previous year
EXPENDITURES.
Capital expenditure: tangible drilling, and development costs (Utilities/ Auxiliaries, Housing/Welfare; Production Facilities; Movables)
Non Capital expenditure : IDC, exploration, and production operation cost
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
EXPENDITURES :EXPENDITURES :
Variable-3 Cost Recovery - Put TogetherVariableVariable--3 3 Cost Recovery Cost Recovery -- Put TogetherPut Together
LIFTING/PRODUCTION
LIFTING/PRODUCTION
EXPLORATION &DEVELOPMENT
- Seismic- G&G Studies- Drilling/Facilities- Administration
EXPLORATION &DEVELOPMENT
- Seismic- G&G Studies- Drilling/Facilities- Administration
PRODUCTION- Oil Well Operations- Sec. Recovery Opr.- Storage, Handling,
Transport, Delivery- Supervision- Maintenance- Electricity Services- Transportation- Administration
PRODUCTION- Oil Well Operations- Sec. Recovery Opr.- Storage, Handling,
Transport, Delivery- Supervision- Maintenance- Electricity Services- Transportation- Administration
GENERAL & ADMINISTRATION
- Finance & Admin.- Safety & Security- Transportation- Training- Accommodation- Personal Expenses- Public Relation- Office Rents- Gen.Office Expenses- Home Office O/H
GENERAL & ADMINISTRATION
- Finance & Admin.- Safety & Security- Transportation- Training- Accommodation- Personal Expenses- Public Relation- Office Rents- Gen.Office Expenses- Home Office O/H
CAPITALCOST
CAPITALCOST
COSTRECOVERY
COSTRECOVERYGROSS REVENUEGROSS REVENUE
PRICEPRICE EQUITYTO BE SPLIT
EQUITYTO BE SPLIT
DEPRECIATION
PRIOR YEARSUNREC. COSTS UNREC. COSTSUNREC. COSTS
NON CAPITALCOST
NON CAPITALCOST
OPERATING COSTS :
aabb
cc
1122
33
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
MATURE BASIN DEVELOPMENT POLICYMATURE BASIN DEVELOPMENT POLICY
21
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
Mahakam Delta Creaming Curve
0.02.04.06.08.0
10.012.014.016.0
1970 1975 1980 1985 1990 1995 2000 2005
Discovery Year
Cum
ulat
ive
EUR
(BB
OE)
Handil
Tunu
Peciko
Deep Water
Creaming Curve West Natuna
0.000.250.500.751.001.251.501.752.00
1970 1975 1980 1985 1990 1995 2000 2005
Discovery Year
Cum
ulat
ive
EU
R (B
BOE)
Belut/Belanak
North Belut
Belida
Kerisi
OIL AND GAS FIELDS > 50 MMBOE
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
121,5
4,270.8
950.8
685.9
869.7
400.1
816.5
145.3
Papua
TOTAL OIL (MMBOE)TOTAL OIL (MMBOE)
Natuna
Maluku
PROVEN = 4,187.47 MMSTBPOTENTIAL = 4,439.48 MMSTBTOTAL = 8,626.96 MMSTB
99
15,3
120.1NAD
62.8
69.1
North Sumatera
Central Sumatera
South Sumatera
East Java West Java
South Sulawesi
East Kalimantan
South Kalimantan
INDONESIA OIL RESERVESINDONESIA OIL RESERVESStatus update Status update januarijanuari 2006)2006)
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
1.27
7.75
24.63
6.04
10.41
53.61
48.80
4.13
24.24South
Sumatera
South Sulawesi
Papua
NATURAL GAS RESERVE (TSCF)(P1 + P2 + P3)
NATURAL GAS RESERVE (TSCF)(P1 + P2 + P3)
Natuna
East Java
EastKalimantanNorth
Sumatera
West Java
PROVEN = 97.26 TSCFPOTENTIAL = 88.54 TSCFTOTAL = 185.80 TSCF
4.49
N A D
CentralSumatera
0.43
CentralSulawesi
INDONESIA GAS RESERVESINDONESIA GAS RESERVESStatus update Status update januarijanuari 2006)2006)
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
0100200300400500600700800900
100011001200130014001500160017001800
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
PRO
DU
CTI
ON
(MB
OPD
)
0100200300400500600700800900100011001200130014001500160017001800
No Effort Operation Profile Maintenance Optimization On-Going Dev. Projects Marginal Fields (Projects)
Brown Fields (Projects) Expected New Field Dev. Block Cepu New Potential Dev.
Historical OutputHistorical Output Projection to 2015Projection to 2015
Marginal FieldsMarginal FieldsBrown FieldsBrown Fields
New Potential DevelopmentNew Potential Development
Oil Production Profile: 1994 Oil Production Profile: 1994 -- 20152015Efforts to increase future outputsEfforts to increase future outputs
22
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
BROWNFIELDBROWNFIELD
DEFINITIONS:DEFINITIONS:
BROWNFIELD (Brownfield KKKS Team)an existing producing field, producing field in decline, or previously developed field. uneconomic under the current terms & conditionsrequire incentives to stimulate new or additional investment in order to enhance production and/or add reserves.
BROWNFIELD (Schlumberger)A mature field in a state of declining production or reaching the end of their productive life.
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
INCENTIVE FOR BROWNFIELDSINCENTIVE FOR BROWNFIELDS
Incentive for EORIncentive for EOR
Secondary RecoverySecondary Recovery17% Investment Credit17% Investment CreditDMO Holiday 60 monthsDMO Holiday 60 months
Tertiary RecoveryTertiary RecoveryChanging Equity Split (Standard in PSC)Changing Equity Split (Standard in PSC)
Incentive for NonIncentive for Non--EOR: EOR: Still in the finalization processStill in the finalization process
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
Incentive AlternativeIncentive Alternative
DMO DMO HoliddayHolidday 60 months60 months
Cost Recovery UpliftCost Recovery Uplift
Interest Cost Recovery (ICR)Interest Cost Recovery (ICR)
INCENTIVE FOR BROWNFIELDSINCENTIVE FOR BROWNFIELDS
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
WaterWater--flood flood :: Minas, Minas, KotabatakKotabatak, , BekasapBekasap and and WiduriWiduri fields.fields.
SteamSteam--flood flood :: DuriDuri field; (field; (BatangBatang, , KulinKulin and and RantauRantau BaisBais fields fields candidates)candidates)..
Gas lean injectionGas lean injection :: HandilHandil field (field (KutaiKutai Basin)Basin)Chemical Flooding Chemical Flooding :: Minas (pilot project in progress).Minas (pilot project in progress).
Applied IOR/EOR TechnologiesApplied IOR/EOR Technologiesin Indonesiain Indonesia
23
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
EOR Success Story : The Past and The FutureEOR Success Story : The Past and The Future
0
50
100
150
200
250
300
350
1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020
Duri_NDDDSFDuri_Base
Impact of New Technology on Increasing Oil RecoveryImpact of New Technology on Increasing Oil RecoveryMBOPDMBOPD
DuriDuri basebase
DuriDuri Steam FloodSteam Flood
North North DuriDuri Dev.Dev.
RF= 8-11%RF= 8RF= 8--11%11%RF= 50-80%RF= 50RF= 50--80%80%
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
0
20.000
40.000
60.000
80.000
100.000
120.000
140.000
160.000
180.000
200.000
J-74
J-75
J-76
J-77
J-78
J-79
J-80
J-81
J-82
J-83
J-84
J-85
J-86
J-87
J-88
J-89
J-90
J-91
J-92
J-93
J-94
J-95
J-96
J-97
J-98
J-99
J-00
J-01
J-02
J-03
DateO
il ra
te (b
opd)
2nd IOR1st IORWIprimary
START WATER INJECTION
START 1st IOR
START 2nd IOR
HandilHandil Production HistoryProduction History
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
MARGINAL FIELDMARGINAL FIELD
PROBLEMATIC DEFINITIONS:PROBLEMATIC DEFINITIONS:
The standard definition in the PSC is not flexible enoughA modified dynamic definition and new criteria is required if significant additional capacity of future oil supply is expectedIt should also cover most of small fields & some larger fields that become uneconomic at current psc term and condition at various maturity stageNeeds strong effort and political will
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
ECONOMIC PARAMETERECONOMIC PARAMETER
The recoverable reserves and production
Current economic conditions : oil price assumption, productive life, marr
Operating methods : Good reservoir management, innovative optimum development scenario, fit for purpose technology, infrastructure, minimum facilities concept design, joint facilities & infrastructure concept
government regulations : psc terms & conditions “win-win" incentives
MARGINAL FIELDMARGINAL FIELD
24
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
Most of oil fields and many larger gas fields are already mature. The exploration & development prospects (particularly for oil) are getting smaller and harder to find
Numerous smaller discoveries, leads and prospects, as well as depleted fields, may contribute significant future additional capacity of supply that can be commercialized
Major challenges for MF developments and program are related to:Redefinition of a better MF terminologyNegotiation of an acceptable MARRAcceptable incentives adoption and implementationSimplification of procedures and processesBuilding up commitments & political will to realize the programs
Challenges in the development Challenges in the development of marginal fields of marginal fields
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
NEW DEFINITIONNEW DEFINITION
New Incentives for marginal field developmentNew Incentives for marginal field development(Decree of MEMR No. 0008/2005)(Decree of MEMR No. 0008/2005)
A Marginal Field is an oil field located within a producing block that, under the current PSC terms and conditions, is not economics to be developed
CONDITIONS FOR MARGINAL FIELDCONDITIONS FOR MARGINAL FIELD
20% Operating Cost *) Recovery Uplift
Other incentive packages that maybe applied for that field in accordance with the prevailing PSC, Laws and Regulation
*) Under PSC condition, the Operation Cost consists of current year’s Non Capital Cost and current year’s Depreciation for Capital Cost
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
NOT ECONOMICNOT ECONOMIC
NOT ECONOMICNOT ECONOMIC
THE CREATION OF A JOINT TASK FORCE(BPMIGAS + PSCS + SERVICES COMPANIES)
TO RE-EVALUATE THE ECONOMICS OF MMFS?
TO DEFINE THE METHOD TO IMPROVE MMFS ECONOMICS
TO DEFINE WHAT INCENTIVES REQUIRED
MATURE and MARGINAL FIELDMATURE and MARGINAL FIELDEfforts and ChallengesEfforts and Challenges
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
EFFORTS TO BE NEEDEDFOR NEW POLICY BREAKTHROUH AS THE ROLE OF BPMIGAS & GOI
EFFORTS TO BE NEEDEDEFFORTS TO BE NEEDEDFOR NEW POLICY BREAKTHROUH FOR NEW POLICY BREAKTHROUH AS THE ROLE OF BPMIGAS & GOI AS THE ROLE OF BPMIGAS & GOI
Production Sharing ContractsProduction Sharing Contracts (if necessary).(if necessary).-- Incentives (for Exploration in New Frontier)Incentives (for Exploration in New Frontier)-- Incentives (Marginal & Brown fields and New EOR)Incentives (Marginal & Brown fields and New EOR)
Efficient Process for POD, WP&B, and AFE ApprovalEfficient Process for POD, WP&B, and AFE Approval-- Reorganization of BPMIGAS to provide a Reorganization of BPMIGAS to provide a ““Proper VehicleProper Vehicle””-- Legal support for Legal support for ““Fast Track Development PolicyFast Track Development Policy””
Better Fiscal RegimesBetter Fiscal Regimes
25
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
CONCLUSIONSCONCLUSIONS
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
The Indonesia PPM Case Study was strongly supported by 2 main governmental agencies, ie. Directorate General Migas and BPMIGAS, which was expected to bridge a joint cooperation among the agencies concerned
The Indonesia team members are coming from multi-governmental agencies, could not make the team compact and solid, created a little problem in the implementation of the PPM activities.
Difficult to invite the members from those agencies due their tight schedule of their official jobs, prefer to attend a workshop held by another case study countries.
PPM Team MembershipPPM Team Membership
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
Not easy to get the real data
There is no the so-called ‘data manager’ either in BPMIGAS or in the Directorate General of Oil and Gas, the data is still kept by the oil companies.
Data can be obtained from BPMIGAS after having an approval from DG of Oil and Gas, and it takes time to approach the data availability.
D A T AD A T A
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
The most useful tool and was used by all case study countries during the project. However, it is very difficult to convince the government, either DG of Oil and Gas or BPMIGAS, that the software is helpful in considering the policy in the petroleum sector.
The modul of GeoX/gFullCycle is also very beneficial in the economical analysis of a petroleum project. However, in the reality it is very complicated and need more practices.
The software can not accommodate all elements of the Indonesia fiscal regime, e.g. First Tranche Petroleum (FTP) which is not similar to Royalty. In the home country, the oil companies have their own software to do the same thing.
GeoX license is issued for a particular computer
GeoXGeoX SoftwareSoftware
26
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
There are many things in the oil sector in Indonesia which are not touched by PPM, and most are internal aspects; such as the production sharing due to the district autonomy, get the benefit of being oil and gas producer, the community development.
The workshops, in general, were a forum to present experiences in solving the CCOP MC’s petroleum problems in their own country, depend on the topic of the workshops
The petroleum business in Indonesia is worked out by many oil companies with their own technologies as well as their own h/wand s/w.
The Indonesia PPM case study contents are in line with the target and strategic planning of the upstream oil and gas sub-sector as stated in the work programme of MEMR 2004 -2009
PPM in PracticePPM in Practice
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
National petroleum management and policy are determined by government, as approved by the House of Representative
The revision and improvement of the petroleum management and policy arrangements due to changes in political, economic and market conditions, have to be approved by the House of Representative
The capacity and capability in petroleum resource management are to be improved
Achievement of the PPM goalsAchievement of the PPM goals
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
Target :To To encreaseencrease exploration and to achieve additional reserves and exploration and to achieve additional reserves and production of oil and gas. production of oil and gas. To increase investment in oil and gas sector.
Strategic programme:To prepare and to promote blocks or working areas.To prepare and to promote blocks or working areas.To do exploration and to discover new oil and gas reserves.To do exploration and to discover new oil and gas reserves.To assess reserves potential in order to increase oil productionTo assess reserves potential in order to increase oil production. . To increase exploration, reserves and production of oil and gas.To increase exploration, reserves and production of oil and gas.To revise investment climate for exploration and production of oTo revise investment climate for exploration and production of oil and il and gas activities.gas activities.Reviewing on Local govt. rules that potentially impact on confliReviewing on Local govt. rules that potentially impact on conflicting cting between central and local govts. between central and local govts. Reviewing and applying technology to increase production. Reviewing and applying technology to increase production.
TARGET AND STRATEGIC PROGRAMME OF MEMR IN TARGET AND STRATEGIC PROGRAMME OF MEMR IN UPSTREAM OIL AND GAS SUBUPSTREAM OIL AND GAS SUB--SECTOR (FOR THE SECTOR (FOR THE
PERIOD OF 1 PERIOD OF 1 –– 5 YEARS)5 YEARS)
PPM Project of the Indonesia Case StudyPPM Project of the Indonesia Case Study
THANK YOUTHANK YOU
Top Related