INDONESIA’S OIL AND GAS INFRASTRUCTURE DEVELOPMENTtechno-forum.jogmec.go.jp/2017/_img/detail/ab_2_Ego.pdf · 28/11/2017 · ANDE ANDE LUMUT EAST NATUNA Production (Q1 2021): 25000

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


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

2


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

3

Kementerian ESDM Republik Indonesia4

UNCONVENTIONAL OIL & GAS

Resources

Coalbed Methane: 453.4 TCF

Shale Gas: 574.07 TCF

48 PSC CMB6 PSC Shale Gas


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

5


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

6


• 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?

1

2

3

4

1

2

3

4

5

OIL & GAS POLICY REFORMS

7


• 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?

1

2

3

4

1

2

3

4

8

5


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%)

9

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


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


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

10

JAMBARAN TIUNG BIRUGas reserves: 97 bscf

CO2 Content: 34%

Investment US $ 2.2 Billion



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

11


OIL REFINERY DEVELOPMENT

1

27

69

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


Complexity Index: 9

Planned Operation: 2023

DUMAICapacity: 300 MBCD


Complexity Index: 8

Planned Op: 2023

BALONGANCapacity: 280 MBCD


Complexity Index: 9

Planned Op: 2021

Grassroot Refinery

Refinery Upgrading

Private Refinery

8

SITUBUNDOPT Kilanindo Golden Star

Capacity: 300 MBCD

Planned Op: 2024

3

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

4

10

12


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

13


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 500 MT & jettyInvestment: US$ 15.2 million

14


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)

3

4

5

Supporting national security enhancement to preserve energy supply stability6

15


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

-

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

16


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)

17

Kementerian ESDM Republik Indonesia18

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


NATIONAL GAS INFRASTRUCTURE ROADMAP UNTIL 2030

19

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


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

20


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

21


NATURAL GAS UTILIZATION IN EASTERN INDONESIA USING VIRTUAL PIPELINE

Gas distribution

using Virtual

Pipeline Scheme

Realization: FSU Benoa,

Bali

22


LNG TERMINAL BENOA

Bringing LNG from Borneo to Bali Island

INDONESIA’S 1ST MINI LNG FOR POWER PLANT

23


- 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

24


FLOATING POWER PLANTS

© Mitsubishi Heavy Industries

TECHNOLOGICAL CHALLENGES

INTEGRATED FLOATING MINI LNG

AND POWER

MINI LNG CARRIER

LNG MINI FLOATING STORAGE &

REGAS UNIT

25


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

26

Require significant technology to solve related challenges,

accelerate development, and promote economic growth.

12

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


www.migas.esdm.go.id

27

Documents

INDONESIA’S OIL AND GAS INFRASTRUCTURE DEVELOPMENTtechno-forum.jogmec.go.jp/2017/_img/detail/ab_2_Ego.pdf · 28/11/2017 · ANDE ANDE LUMUT EAST NATUNA Production (Q1 2021): 25000