MINISTRY OF ENERGY AND MINERAL RESOURCESDIRECTORATE GENERAL OF OIL AND GASDIRECTORATE GENERAL OF OIL AND GAS

DEEP-WATER EXPLORATION

& DEVELOPMENT IN INDONESIA& DEVELOPMENT IN INDONESIA

by:Yunan Muzaffar

HEAD OF EXPLORATION DIVISION

Subsea ConferenceOctober 3rd, 2012

AGENDAAGENDA

SHIFTINGSHIFTING PARADIGMPARADIGM WITHINWITHIN OILOIL &&GASGAS SECTORSECTORGASGAS SECTORSECTOR

DEEPDEEP WATERWATER BLOCKSBLOCKS ININ INDONESIAINDONESIA

INDONESIAINDONESIA DEEPDEEP WATERWATEREXPLORATIONEXPLORATION && DEVELOPMENTDEVELOPMENT

CHALLENGESCHALLENGES ANDAND OPPORTUNITIESOPPORTUNITIESCHALLENGESCHALLENGES ANDAND OPPORTUNITIESOPPORTUNITIES

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SHIFTING PARADIGM WITHIN OIL & SHIFTING PARADIGM WITHIN OIL & GAS SECTORGAS SECTOR

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FROM REVENUE TOFROM REVENUE TOECONOMIC GROWTH MACHINE (FEEDSTOCKECONOMIC GROWTH MACHINE (FEEDSTOCK--FUELFUEL))

ROLE OF OIL AND GAS INDUSTRIESROLE OF OIL AND GAS INDUSTRIES

OIL AND GAS OIL AND GAS INDUSTRYINDUSTRY

OIL AND GAS OIL AND GAS INDUSTRYINDUSTRY INDUSTRIAL

DOMESTIC

FEEDSTOCK

High RiskHigh Risk SUSTAINABLE

NATIONAL

DOMESTIC FUEL

SOURCE OF High High CostCost DEVELOPMENT

SOURCE OF STATE

REVENUE

High TechnologyHigh Technology MULTYPLIEREFFECTS

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FROM WEST TO FROM WEST TO EASTEASTM f d d l ti ti iti dMore reserves found and exploration activities occureed

in the eastern part of Indonesia mainly deepwater projectdeepwater project

Mostly TertieryDiscoveries in Jurrasic Plays 1998-2008

Western part Eastern part

Deep Water Area

Eastern part

9 98

10

EASTERN INDONESIA CONTRACT SIGNED

Deep Water Area

2 23

0 0

5

0

2

4

6

8

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02003 2004 2005 2006 2007 2008 2009 2010

EASTERN INDONESIA CONTRACT SIGNED

Most of bidding acreage located in eastern side of Indonesia

FROM OIL TFROM OIL TOO GAS GAS en

t qu

ival

e o

il eq

bare

l

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INCREASED OF DOMESTIC GAS ALLOCATIONINCREASED OF DOMESTIC GAS ALLOCATIONBASED ON CONTRACTS/ GSA BASED ON CONTRACTS/ GSA

Comparison of Accumulation Volume Contract Domestic vs. Exports

status Nov 2011

EXPORT6,11 TCF

24%Comparison of Accumulation Volume ContractDomestic vs. Exports During 2001 – Nov 2011

TCF

DOMESTIC 20

25 

30 TCF

DOMESTIC19,52 TCF

76% 10 

15 

20 

‐

5 

2003 2004 2005 2006 2007 2008 2009 2010 2011

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domestik ekspor

DEEP WATER BLOCKSDEEP WATER BLOCKSIN INDONESIAIN INDONESIA

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DEEP WATER SPECULATIVE SURVEY OF INDONESIADEEP WATER SPECULATIVE SURVEY OF INDONESIA

The distance between seismic line relatively far 20-50 km ideally for O&G bidding 5 km

© DJMIGAS 03102012

The distance between seismic line relatively far 20-50 km ideally for O&G bidding 5 km

PRESENT DEEP WATER BLOCKS OF INDONESIAPRESENT DEEP WATER BLOCKS OF INDONESIA

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INDONESIA DEEEPWATERINDONESIA DEEEPWATEREXPLORATION & DEVELOPMENTEXPLORATION & DEVELOPMENT

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DRILLING ACTIVITIES INDRILLING ACTIVITIES IN DEEP WATER BLOCKS OF DEEP WATER BLOCKS OF INDONESIAINDONESIA

No. Block Drilling Rig

1 Lhokseumawe Plan to Drill 1 well on 2012 Ocean Monarch

• Almost Seismic Commitment Fulfilled at whole deep Water Area

2 Surumana Block Drilled 1 well (Rangkong-1) West Aquarius

3 South East Ganal I Plan to Drill 1 well (2013) Ocean Monarch

Area

• Worldwide Deep Water Drilling Rig Availability is Limited

4 Pasangkayu Drilled 4 Well (Bravo-1, Romeo-1, Romeo-B1, Romeo-C1)

GSF Explorer

5 Kuma Drilled 1 well (Kaluku-1) GSF Explorer

6 Karama Drilled 2 Well ( Gatotkaca 1 & Anoman 1) GSF Explorer

g y

• Regional Autonomy should support & be partner in maintaining the investment for6 Karama Drilled 2 Well ( Gatotkaca-1 & Anoman-1) GSF Explorer

7 Mandar Drilled 3 well (Sultan-1,Kris-1 & Kris-1 St) West Aquarius

8 West Sageri Plan to Drill 1 well (2013) Ocean Monarch

maintaining the investment for regional area of Indonesia

• More Petroleum system Studies

9 Sageri Drilled 1 well (Lempuk-1) GSF Explorer

10 Kofiau Plan to Drill 1 well (2013) Ocean Monarch

in deep water are needed to determine potential estimates

• Successful exploration will11 West Papua IV Plan to Drill 1 well (2013) Ocean Monarch

• Successful exploration will require additional rig time to appraise discoveries

© DJMIGAS 03102012

MAKASSAR STRAITMAKASSAR STRAIT DEEP WATER DRILLING PROGRAM DEEP WATER DRILLING PROGRAM

D t Ri

Business Opportunity The downside to all

Deepwater Rigs(GSF Esplorer)

The 7 companies have a combined 12deepwater well commitments in the Makassar Straits

Total drilling investment of over US$700MM

of this interest

g $Barrier:

Rig availability, contract length and day rates

Solution:7 companies working together with one rigtogether, with one rig

© DJMIGAS 03102012

JAMBU AYE UTARA FIELD KRUENG MANE BLOCK

DISCOVERIES IN DEEP WATER AREAS DISCOVERIES IN DEEP WATER AREAS OF INDONESIAOF INDONESIA

JAMBU AYE UTARA FIELD, KRUENG MANE BLOCK

POD I : 2012Water Depth : 600 – 650 MGas Rate : 100 MMSCFD,

plateau 3 yearsOn Stream : 2014

POD I : 2008

GENDALO & GEHEM FIELDS, UNITIZATION OF GANAL & RAPAK BLOCKS

Water Depth : 1000 - 2000 M

Gas Rate : 120 - 600 MMSCFD

On Stream : 2013

UPCOMING DEEEP WATER PROJECT (ABADI FIELD, MASELA BLOCK)

POD I : 2010Water Depth : 300 – 1000 MGas Rate : first stage 2.5 MTPA

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gequal to 130 MMSCFD

On Stream : 2018

EXISTING DEEP WATER DEVELOPMENT IN INDONESIAEXISTING DEEP WATER DEVELOPMENT IN INDONESIA

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ONGOING INDONESIA ONGOING INDONESIA DEEP WATER DEVELOPMENT DEEP WATER DEVELOPMENT

G 16 ”

Kapasitas 150 mmscfdCurrent prod ’n 60-70 mmscfd

Pada 2013 app. 20 mmscfdG 16 ”

Capacity 150 mmscfdCurrent prod’ n 60-70 mmscfd

2013 app. 20 mmscfd

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120 mmscfd

Gas 20 ”Cond ’t 8”

Gas 16 ”Cond ’t 8”

pp79 Km

85 Km60 Km

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120 mmscfd

Gas 20 ”Cond ’t 8”

Gas 16 ”Cond ’t 8”

pp79 Km

85 Km60 Km

RANGGAS(~ 5,200 ’ WD)

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700 mmscfd

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420 mmscfd30,000 bcpd

110 Km

RANGGAS(~ 5,200 ’ WD)RANGGAS

(~ 5,200 ’ WD)The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.

700 mmscfd

The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.

420 mmscfd30,000 bcpd

110 Km

Bangka Field (tie in Existing West Seno FPU)00 sc d25,000 bcpd00 sc d

25,000 bcpdg ( g )

To delivery 150 mmscfd and 2,880 bcpd.Facility built consist of Subsea wellhead and Umbilical Risser and Flow Lines (SURF) tie in to West Seno FPU

Gehem HubTo delivery 420 mmscfd and 27,000 bcpd.Facility built consist of Subsea wellhead and Umbilical Risser and Flow Lines (SURF) and Floating Production Unit (FPU), Export P/L

Gendalo, Gadang, Maha Field (Gendalo Hub)To delivery 700 mmscfd and 20,000 bcpd.Facility built consist of Subsea wellhead and Umbilical Risser and Flow

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Facility built consist of Subsea wellhead and Umbilical Risser and Flow Lines (SURF) and Floating Production Unit (FPU), Export P/L

INDONESIA DEEPWATER DEVELOPMENTINDONESIA DEEPWATER DEVELOPMENTSUMMARY OVERVIEWSUMMARY OVERVIEW

At 6 000 water depth in the Gehem Field IDD has the deepest

Ganal PSC : Contract Signed February 24 th, 1998Rapak PSC : Contract Signed Desember 4th 1997

At 6,000 water depth in the Gehem Field, IDD has the deepestShip-shaped floating structureSubsea production treesSuction pile installationFlowline installationFlowline installationExport pipeline and SCR

Largest offshore natural gas processing facility (700 mmcf/d)Largest single subsea umbilical orderLongest mooring lines - 2 4 mi (3 9 km)Longest mooring lines 2.4 mi (3.9 km)Heaviest SCR load on a deepwater floating facility at 650 tons (590 metric tons)

Front End Engineering and Design (FEED)– Contract for Floating Production Unit to PT Technip IndonesiaContract for Floating Production Unit to PT Technip Indonesia– Contract for subsea and flowline system to PT Worley Parsons Indonesia– Contract for export pipelines to PT Worley Parsons Indonesia– Contract for onshore receiving facility to PT. Singgar Mulia

Engineering, Procurement, Construction, and Istalation (EPCI)After FEED, project team is still doing some scope and cost optimizations to address EPCI costescalation – potential for unfavorable market conditions

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Final Investment Decision (FID) : Juni 2013

CHALLENGES AND CHALLENGES AND OPPORTUNITIES OPPORTUNITIES

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CHALLENGES INOFFSHORE & DEEPWATER ACTIVITIES

Technical aspects: (water depth, slope rugosity, high pressure,( p p g y g ppeculiar geological conditions)

Commercial aspects: more time from discovery to first commercialCommercial aspects: more time from discovery to first commercialproduction (8-10 years)

Worldwide Deep Water Drilling Rig Availability is Limited (serviceWorldwide Deep Water Drilling Rig Availability is Limited (serviceavailability)

Regional Autonomy should support & be partner in maintaining theRegional Autonomy should support & be partner in maintaining theinvestment for regional area of Indonesia

M P l S di i d d dMore Petroleum system Studies in deep water are needed todetermine potential estimates

© DJMIGAS 03102012

OPPORTUNITIES INOFFSHORE & DEEPWATER ACTIVITIES

BIG BIG UPSIDE POTENTIALSUPSIDE POTENTIALS

STRONG GOVERNMENT SUPPORTSTRONG GOVERNMENT SUPPORTSTRONG GOVERNMENT SUPPORTSTRONG GOVERNMENT SUPPORT

better PSC split for high risk block 65/35 (oil) and 60/40 (gas)better PSC split for high risk block 65/35 (oil) and 60/40 (gas)

no exploration well in the firm commitmentno exploration well in the firm commitment

exemption of import dutyexemption of import duty

LESS COMPETITIONLESS COMPETITION

© DJMIGAS 03102012

www.migas.esdm.go.id

© DJMIGAS 03102012

www.migas.esdm.go.id