Newsletter - Indonesian Petroleum Associationipa.or.id/assets/images/newsletter/IPA-Newsletter-5th... · 2017-02-04 · mendations that resulted from the forum in this newsletter

Newsletter

August 2012 5th Edition

Indonesia Stock Exchange Building, Tower II, 20th Floor (Suite 2001), Jl. Jend. Sudirman Kav. 52-53, Jakarta 12190, IndonesiaT. +62 21 515-5959, Fx. +62 21 5140-2545/6

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Highlights Features2 The 36th IPA Convention &

Exhibition

13 Ditjen Migas-IPA Exploration Forum

16 Company Profile

Shell Indonesia

18 CSR Total E&P Indonesie

21 News Flash

22 Professional Division Section

Foreword from the IPA Board

Dear IPA Members..

On this joyous occasion for all Moslems around the world and on behalf of the IPA Board of Directors, i would like to take this opportunity to wish all of our Moslem members a “Selamat Hari Raya Idul Fitri, Mohon Maaf Lahir dan Bathin.” May you have a very happy and peaceful Eid.

We will soon be entering the last quarter of this year and many activities have been conducted by the IPA since the beginning of this year which you can read about in this 5th edition of the IPA Newsletter.

The 36th IPA Convention and Exhibition 2012 was completed with great success. Thanks are due to all members of the Con-vention Committee who have worked very hard to make this event a success and also to all participants from the govern-ment and industry who have participated in the exhibition, technical programs and other activities of this convention. I would also like to convey my congratulations to all of the win-ners at this event: Best Booths, Best Oral Presentations, Best Poster Awards and Best Pictures in the 1st IPA Photography Competition. Congratulations on your great achievement!

The 36th IPA Convention and Exhibition achieved its objectives of holding an open and frank dialogue between all stakehold-ers and providing a platform for the government and industry to discuss the challenges to meet the country’s energy needs.

The industry is ready to invest billions of dollars to achieve the national production target and to increase oil and gas reserves but to enable this investment to be realized, a stable invest-ment and regulatory environment is needed which, in turn, will drive the economic growth of the country.

The message that the IPA wanted to convey at this convention was that to meet Indonesia’s growing energy needs, it is im-portant that there is increased collaboration between the gov-ernment and all stakeholders. It is the IPA’s continuous hope that in line with the spirit of Presidential Instruction No. 2 Year 2012, the government and industry can work together in con-sultation, cooperation and coordination in a spirit of true part-nership to develop Indonesia’s energy resources for the benefit of Indonesia and its people.

As Exploration is the future of the oil and gas industry in Indo-nesia, the IPA jointly organized an Exploration Forum with the Directorate General of Oil and Gas on July 10, 2012 to discuss how to increase exploration investment, activity and perfor-mance. You may read the summary of key points and recom-mendations that resulted from the forum in this newsletter. It is envisaged that follow up meetings will be convened for fur-ther discussion and drafting of proposals on key issues.

To continue with a tradition which was started last year, the IPA held a Buka Puasa with all stakeholders on August 7, 2012. On this auspicious occasion, the IPA took the opportunity to continue its “IPA Care Program” by giving support to “Sekolah Kami”, a school dedicated for scavenger and disadvantaged children located in the Bekasi area. A donation was symboli-cally handed over by the IPA to Ibu Irina Amongpradja, the principal of the school, to provide funds to renovate the school facilities.

Dear IPA Members, I wish you an informative and enjoyable reading of this newsletter and hope our industry will continue to prosper and grow for the benefit of Indonesia, its people and all stakeholders.

Jeff ShellebargerIPA Vice PresidentChevron Indonesia Co.

Minister EMR, Jero Wacik officially opened The 36th IPA Convex, accompanied by BPMigas Chairman, R. Priyono; DG MIGAS, Evita Legowo & IPA President, Elisabeth Proust.

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“The 36th IPA Annual Convention & Exhibition 2012”

The 36th Annual Convention and Exhibition of the Indo-nesian Petroleum Association (IPA) was held between May 23rd - 25th in Jakarta, Indonesia with the theme:

“Working Together to Meet Indonesia’s Energy Needs”

As the biggest annual regional event for the oil and gas industry, this year’s Convex attracted :

Opening address was provided by the Minister for Energy and Mineral Resources, Jero Wacik, who official-ly opened the Convention and raised several key points during his opening address;

• The Government of Indonesia is open to further talks with industry stakeholders to provide incentives to stimulate future growth in the petroleum sector.

• The government also recognizes the huge contribu-tion of the industry to the economy and encourages all stakeholders to think positively, develop trust and work together to achieve the targets set by the government.

In her opening remarks, IPA President, Elizabeth Proust said: “The IPA believes that, in order for the oil and gas industry to continue to supply energy to sup-port Indonesia’s economic growth, it is necessary for all stakeholders, from government institutions, cen-tral and local government representatives, NGOs and communities, as well as the industry itself, to focus on the 3 Cs - Consultation, Cooperation and Coordination”.

1. Plenary SessionFirst Plenary Session - “What Are Indonesia’s Current and Future Energy Needs ?”

• The National Energy Council forecast that energy demand in Indonesia will rise threefold by 2030 from the current annual consumption of 150 mil-lion tons of oil equivalent, including a large increase in electricity demand to power the growing popula-tion and economy. This energy challenge has been heightened by a geographical supply-demand mis-match, with energy consumption very heavily focused in densely-populated Java, but fossil fuel resources most strongly focused in Sumatra and Kalimantan.

• Panelists agreed that demand is increasing rapidly and that by expediting the offering of exploration and development acreage to willing and capable investors by MIGAS, together with improvements in the regula-tory environment, the country can respond to these challenges and generate the energy that is needed to support future growth.

• It was also agreed that the government needed to have clearer targets and incentives for energy infra-structure, to ensure the security of the country’s long term energy supplies.

HIGHLIGHTS• More than 8,000 visitors to the Convex, including over

2,300 registered participants• Exceptional industry participation with more than 150 ex-

hibiting companies• More than 135 technical papers and posters from profes-

sionals and students covering Geosciences, Engineering and Business/Commercial

• An exceptional media turnout with over 400 journalists registered from a range of national, international, local and specialist media outlets

• Opening Ceremony by H.E. the Minister of Energy and Natural Resources, Mr Jero Wacik

• An “Empowerment Center” with educational cinema pre-sentations on the process of oil and gas exploration and production, the PSC concept and CSR efforts by the oil and gas companies to support the environment and communi-ties where they operate.

Panelists:Mr Herman Agustiawan - National Energy CouncilMr Nur Pamudji - President Director, PLN Mr Suryo Bambang Sulisto - Chairman KADINMr Hendy Santoso – President Director PGN Moderator : Mr Muhamad Husen - IPA Board Member. Facilitator : Mr Kong Ming Tek - Boston Consulting Group.

Ibu Evita Legowo plays gamelan with IPA BODs to mark the closing of The 36th IPA Convex.

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Second Plenary Session - “How to Create An Environment to Meet the Demand?”

Keynote Speaker: Mr. R. Priyono - Chairman BPMIGAS

• The Boston Consulting Group noted that Indonesian exploration success and drilling activity have lagged behind their peers and that a collaborative approach is needed to develop a mix of resources to close the production-consumption gap. Attendees heard that 50 to 70 Billion US dollars of Capex investment needs to be approved over the next 3-4 years if Indonesia is to meet its ongoing energy needs.

• In his Keynote Speech, Mr. R.Priyono remarked that to support economic growth, adequate supplies of energy are needed and that although oil has played a major role in the past and despite Indonesia becomi–ng a net oil importer, oil’s share in the energy mix is still high. Renewables have great potential but if pro-duction cannot be increased rapidly, then fossil fuels need to feed the gap and Indonesia will come to rely more and more on gas.

• Panelists agreed that gas demand is growing – the country must develop and produce more, rather than rely on increasing imports of primary energy. The government should address its pricing policy, par-ticularly for natural gas and also encourage explora-tion, which is the key to future success. Attendees also heard from speakers from Malaysia and Norway who highlighted the innovative fiscal and technical in-centives that have been initiated by their respective

governments to encourage and accelerate investment and stimulate activity.

• In summary, broad based efforts by multiple stake-holders are required to raise investment and activity levels, requiring a stable and favorable investment environment to increase production of oil and gas, contribute to Indonesia’s energy security and provide essential revenues for the nation.

Third Plenary Session - “How Do We Work Together to Achieve Presidential Instruction No. 2 Year 2012?”Keynote Speaker:Mr Bambang Brodjonegoro - Head of Fiscal Policy Body (BKF), Ministry of Finance

Mrs. Evita Legowo - Director General MIGAS

• The need for a collaborative approach amongst all stakeholders to deal with the gap between sup-ply and demand was highlighted, along with the pressing need to increase production in order to meet the target stated in the decree.

• The industry requires swift resolution to issues relat-ing to regulations, licensing, security and land over-lapping concerns so that development plans can be implemented to increase production. The need to es-tablish a task force between government and industry under the coordination of the Coordinating Minister of the Economy was discussed.

• The Coordinating Minister of the Economy is due to report on the decree’s progress to the President by July 2012. The industry hopes that through increased collaboration and coordination, government and in-dustry can work together in partnership to achieve the production target detailed in the Presidential decree.

Panelists :Mr Sugiharto – President Commissioner PertaminaMr Soeprapto – Special Staff to Minister of ForestryMr Edy Hermantoro – Director Upstream Development MIGASModerator : Mr Sammy Hamzah – IPA Board Member Facilitator : Mr Philip Whittaker - Boston Consulting Group.

Panelists:Mr Hary Karyuliarto – Gas Director PertaminaMr Ramlan Malek – Vice President PMU (Petroleum Ma–nagement Unit) PetronasMr Tor Fjaeran – President Director StatoilMr Lukman Mahfoedz – President Director Medco Energi InternasionalMr Ahmad Yuniarto - Chairman SchlumbergerModerator : Mr Jeff Shellebarger – IPA Board MemberFacilitator : Mr Kong Ming Tek - Boston Consulting Group.

Second Plenary Session.

Keynote speakers and panelists at the Plenary Session 3.

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2. Special Session on Revisions to Oil and Gas Law No. 22 Year 2011

• The attendees were informed on the background of the Oil and Gas Law revisions, that the existing law had been relatively successful and that a major revi-sion now would only increase uncertainty for future investment.

• The DPR position was explained, including a summa-ry of the complex issues involved, the legal basis and the projected timeline for implementation of the new revision of the law. In summary, the DPR position is that strategic national assets must be protected and managed by the government of Indonesia as the hold-er of the mining rights.

• Attendees also heard that increased signature bo-nuses and participating interests are to be given to regional government, with Pertamina and local enter-prises to be given 1st right of refusal for relinquished fields.

• Other speakers reaffirmed the desire to have a big-ger participation of national companies in the oil and gas sector, noting that that this could still be achieved without amendments to the law, but rather through implementing regulations.

• Also that the oil and gas business should be Business to Business ventures in line with the 1945 Constitu-tion, prioriti–zing national interests but at the same time providing legal certainty and respect for existing contracts.

3. Media Talk Show with BPMIGAS

• The speakers highlighted the need for transparency from companies, government and agencies. The me-dia also needs better information on the industry in order to be objective and to better educate the public.

• It was also noted that there is a certain amount of mis-understanding on the oil and gas industry amongst the media.

• Perceptions exist that most oil and gas fields are owned by foreign companies, and that communities are not sufficiently benefiting from the production of oil and gas.

• The overall conclusion was on the need for greater communication to the media from the relevant Go–vernment Ministries and from the industry.

4. Lifetime Achievement AwardAt the Gala Dinner held on 25 May 2012, the IPA present-ed a “Lifetime Achievement Award” to Mr Baihaki Ha-kim, former President Director of PT Caltex Pacific In-donesia, President Director of Pertamina and President of the IPA (1999). The award was handed to Mr. Baihaki Hakim by Mr. R. Priyono.

Mr Pieter P. Gero - KompasMr Arif Budisusilo - Bisnis IndonesiaMr Wahyu Muryadi - Majalah TempoMr Primus Dorimulu - Suara Pembaruan Mr Gde Pradnyana - BPMIGASModerator : Mr Kornelius Purba - Jakarta Post

Mr Satya W. Yudha –Member of Commission VII, DPR;Ms. Evita Legowo – Director General MIGASMr Pri Agung Rakhmanto – Exec Director Reforminer Ins.Mr Anggito Abimanyu – UGM, JogjakartaModerator: Mr Suyitno Patmosukismo – IPA

Ibu Evita Legowo poses with IPA BODs and Convention Committee.

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“Technical Program Highlights”

One of the cornerstones related to the success of any convention of people is the exchange of ideas and knowl-edge. And that is especially true regarding the conven-tion of technical professionals. Once again the IPA was able to bring together professionals intent on sharing ideas and knowledge through oral and poster presenta-tions and those hoping to learn from the offerings during the 36th IPA Convention and Exhibition.

Overall there were 96 oral presentations, within 28 ses-sions, and 20 poster presentations given by professional level members and delegates. Geosciences related pre-sentations numbered 69; Engineering related numbered 34; Business/Commercial related numbered 6 and Oth-ers related numbered 7. In addition, there were 7 oral presentations, within 2 sessions, and 12 poster presen-tations given by geosciences and engineering students.

Pulling the 30 session program together could not have been possible without the dedicated effort of 27 Tech-nical Program Committee professional volunteers who had been working on the technical program since De-cember 2011; 42 manuscript editors; 48 convention ses-sion chairpersons and 90 oral presentation and poster judges. And of course, all of the effort was backed up by the excellent staff in the IPA Secretariat.

Best Oral Presentation and Best Poster Awards, Profes-sional and Student were as follows:

Professional Oral Presentation

Engineering & Formation Evaluation “Determination of Residual Gas Saturation and Relative Permeability in the Modeling of the Abadi Gas Field”, by Masahiko Nomura, INPEX Corporation

Geology“Developing a Large Carbonate Buildup Oil Field Banyu Urip, Cepu Block”, by Frank Musgrove,Mobil Cepu Limited

Geophysics“Advantages in Depth Imaging Technology: Rock Phys-ics Guided Migration of Seismic Data in 3D”, by Nader C. Dutta, Schlumberger

HSE, Community Development, Business & Commercial“Driving Business Excellence with Purposeful Collabo-ration Network Excellence at ConocoPhillips”, by Stein Wolden, ConocoPhillips

Professional Poster Presentation

“Geological Review To Identify Petroleum System In Pati Basin”, by Aveliansyah, Dini Andriani, Rizky Syawal, Per-tamina Hulu Energi, Patra Nusa Data, ETTI

Student Oral Presentation

“Jurassic Sandstone Characteristic of Bobong Forma-tion in Taliabu Island, Eastern Indonesia: Outcrop and Petrography Observation”, by Septriandi, University of Padjadjaran

Student Poster Presentation

“Thickness Estimation Using Gradient of Spectral Am-plitudes from Spectral Decomposition”, by Tri Wuri Asri Sulistyoati, Lita Novitasari, Sonny Winardhi, Institute of Technology Bandung

Best Overall Professional Oral Presentation

“Pressure Transient Analysis in Unconventional Re-sources”, by George Stewart, Weatherford International

The 36th IPA Convention and Exhibition Technical Pro-gram Committee wishes to thank all oral and poster presenters for their contribution towards making this year’s IPA Convention a resounding success. And we wish to thank members and delegates for their partici-pation in the exchange of ideas and knowledge through the insightful questions asked during the oral presenta-tions and poster presentations.

Stephen M. ScottChairman Technical Program Committee 2012

Ambiance at the technical oral presentation.

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“WINNERS OF THE BEST BOOTH CONTEST”

Every year, the IPA has a Best Booth Contest as part of the annual Convention and Exhibition. However this year, with the aim of always improving the judging cri-teria and selection process, we appointed 3 independent judges who worked from before the start of the exhibi-tion through to the closing hours of the Exhibition on 25 May to accumulate their scores and make their expert choices. The judges were experienced M.I.C.E. lecturers (Meetings, Incentives, Conventions & Exhibitions) from the University of Indonesia as follows:

1. Mrs. Aris Miyati Nasution2. Mrs. Maharani3. Mr. Didik Ardian

The criteria for the best booth judgment are:

1. Compliance with rules and regulations 15%

2. Safety measures 15%

3. Creativity, imagination and originality 15%

4. Contents including informative materials, promo-tion and booth programs when applicable 25%

5. Esthetics in façade, interior design and space utilization 10%

6. Booth staff’s aptitude, enthusiasm, friendlines and interaction with visitors 5%

7. Overall appearance and attractiveness 15%

TOTAL 100%

The categories for the booth contest are:

Category 1:Best Booth with large size of 50 sqm and aboveCategory 2:Best Booth with medium size between 18 and 50 sqmCategory 3:Best booth with small size of 9 sqm

Booths activities at The 36th IPA Exhibition

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Here are the nominees for each category.CATEGORY 1:

LARGE SIZE BOOTH:

The Top 11 nominees are (in random order) with two having the same score.

CHEVRON EXXONMOBIL

MEDCO CONOCOPHILLIPS

TOTAL PERTAMINA

VICO SCHLUMBERGER

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BP INDONESIA INPEX

STATOIL

THE TOP 5: l TOTAL l EXXONMOBIL l MEDCO l CONOCOPHILLIPS l CHEVRON

THE WINNER OF CATEGORY 1 :PT Medco Energi International Tbk.

Contractor: PT Kreatif Set Indonesia (SET Production)

Mr. Joang Laksanto Senior Manager of Relations accepting the award from Mr. Shunichiro Sugaya, IPA

BoD (Board of Directors) Member

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CATEGORY 2:MEDIUM SIZE BOOTH:

The Top 10 nominees are:

LUNDIN JX NIPPON

SANTOS HESS

ELNUSA SALAMANDER

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PGS PARADIGM

STAR ENERGY ROXAR FLOW

THE TOP 5: l LUNDIN l JX NIPPON l SANTOS l HESS l ELNUSA

THE WINNER OF CATEGORY 2 :Hess Indonesia

Contractor : TRIEKSIS

Mr. Artis Waluyono, Vice President - Government & Ex-ternal Affairs from Hess Indonesia, accepting the award

from Mr. Erec S. Isaacson, IPA BoD Member

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CATEGORY 3:SMALL SIZE BOOTH:

The Top 10 nominees are:

INOVA WELACO

PROWELL DAHANA

OPAC JGI

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CLG ARGOS TUGU PRATAMA INDONESIA

SDC GEOLOGIX PANALPINA

THE TOP 5: l INOVA l PROWELL l WELACO l DAHANA l OPAC

AND THE BEST BOOTH AWARD OF CATEGORY 3 GOES TOPT DAHANA (Persero)

with the contractor PT Kanya Prima Mandiri

Ms. Lies Kurniasih from IPA Committee acting on behalf of DAHANA, accepted the award from

Mr. Gary Ford, IPA BoD Member

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Ditjen Migas-IPA Exploration Forum

On Tuesday, July 10, 2012 at the Nusantara Ballroom, The Dharmawangsa Hotel, the Directorate General of Oil and Gas together with the IPA organized an exploration forum with the following objectives:

• To communicate the results of the IHS analysis of Regional Exploration trends (2001 to 2010) commis-sioned by the IPA in 2011 as an independent, objective third party assessment of trends and insights relating to Regional and Indonesian oil and gas exploration.

• To articulate and assess the implications of the above trends in relation to the role of exploration in meeting national oil and gas production targets.

• For Government and IPA to jointly brainstorm and dis-cuss issues and recommend actions to increase ex-ploration investment in Indonesia.

Attended by more than 40 participants from MIGAS, BP-MIGAS, the Geological Agency of ESDM, the Fiscal Policy Body (BKF) of the Minister of Finance and IPA, the forum provided the opportunity for participants to hear pre-sentations by speakers from the government and the in-dustry highlighting the internal and external challenges in accelerating and boosting exploration investment in Indonesia. It was intentionally planned as a small group discussion in order to have a fruitful and mutually ben-eficial discussion.

The Forum was opened by a welcoming address from Elisabeth Proust, IPA President who emphasized that one of the roles of the IPA is to offer opportunities to ex-change views between members and government insti-tutions on the major issues and challenges of the indus-try and that this occasion was dedicated to the subject of exploration.

She highlighted that exploration is the future of the oil and gas industry in Indonesia but also one of the key contributors to the welfare of Indonesia’s next genera-tion. Exploration in Indonesia is a technical challenge – as resources are becoming more difficult to find, being located in deep offshore and remote locations. Explora-tion is also an economic challenge as the companies are taking the risk of exploration by self-financing and in-vesting huge amount of money in an attempt to discover the resources and generate an opportunity to produce a profitable investment. In addition, to perform explora-tion in these frontier areas, companies need high levels of financial and technical capability.

Please find below summary of Key Points of each Pre-senter:

Title and Presenter Key Points

“IPA President’s Welcoming Address”

Ibu Elisabeth ProustIPA President

• Exploration is the future of the oil and gas industry in Indonesia

• Realizing the potential of exploration involves techni-cal, economic and political challenges

• Stakeholders understand the current situation of declin-ing production, reserves and investment.

• This forum to address what is missing

“Accelerating Exploration Investment”

Bapak Haposan NapitupuluDeputy PlanningBPMIGAS

• 293 active work areas of which 218 are in explora-tion stage and of these 50 are CBM PSC’s. 78 PSC’s in Exploitation stage

• Only 23% of PSC’s had satis-fied their firm commitments.

• Exploration WP&B drilling realization <50%

• After land access issues, the most common cause of fail-ure to satisfy commitments were contractor’s poor finan-cial, technical and operational capability.

• Situation was hindering block success ratio’s, drilling activ-ity and reserve additions and ultimately future production

• Facilitating and enabling the exploration farm out process was seen as an important step to ameliorate the situ-ation

“Roadmap Oil and Gas Explora-tion”

Bapak Yunus KusumabrataSecretary to Head of Badan Geologi KESDM

• Improve access to data and information by KESDM to en-able greater G&G evaluation and, integration to ultimately reduce industry risk.

• Focus on adding work areas in Eastern Indonesia through great data and information availability

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“ Multi-client Seismic Invest-ment To Boost Exploration Activity in Indonesia”

Ranjit PannuWesternGeco

• More data means more pros-pects, reduced risk and more drilling

• Multi-client seismic acquisi-tion activity levels in Indo-nesia well below Australia which significantly increased investment by extending exclusivity period from 10 to 15 years. Indonesia needs to follow.

• Introduce mechanism to al-low cost recovery of multiline data

• Extend lead time for bid sub-mission of regular tenders to 12-18 months to allow use of multi-client data.

“Norway Case History :Incentivizing Exploration and Reserves Growth in a Mature Areas”

Jeffrey J. Lobao Exploration Advisor(Fmr. GM SEAsia for Lundin)

• Norway similar to Indonesia with advanced exploration maturity and experiencing production and reserves decline.

• Easy and attractive to invest with stable fiscal terms, easy data access and no ring-fencing of licenses

• In 2004 Government incentiv-ized exploration risk taking by providing a 78% exploration drilling rebate, paid in cash if no tax offset available.

• Exploration drilling activity in-creased by 60% and reserves additions increased by 120%

• Government received an ap-proximately 400% return on its investment

• Promoting risk taking through the exploration cost – risk – reward equation and drilling commitment flexibility drove the success, not new technology.

“Promoting Exploration Invest-ment”

Ibu Evita H LegowoDirector General of Oil and Gas

• Significant resource potential remaining in explored and under explored basins.

• Oil & Gas still expected to comprise 50% of 2025 na-tional energy mix.

• Securing domestic fuel sup-ply a critical component of national security.

• Key initiatives include:1. oIncrease the number of

offered working areas and exploration activity.

2. oAccelerate field develop-ment.

3. oImprove development of unconventionals.

4. oImprove coordination with relevant agencies to resolve issues related to regulation, licensing, security and land overlap-ping.

5. oWillingness from the government to give special incentive for increasing exploration (fiscal & non-fiscal).

“Indonesian Fiscal Policies to Support Oil and Gas Sector”

Astera Primanto BhaktiDirector of Centre for State Revenue Policy, Fiscal Policy Office, MoF

• MoF provides support to increase oil and gas lifting’s with fiscal and non fiscal incentives based on economic analysis.

• Upstream Focus has been on VAT, Customs and import duties but it is acknowledged that Indonesia has limited tax facilities

• Proper governance of cost recovery is required to safe-guard state revenue.

• Sanctity of contract must be taken into account

• BPT disputes on old PSC will need to be resolved through contract renegotiation and not tax treaty renegotiation which is much too hard. PSC Investors should come and talk to us on the treaty issue.

• On the issue of VAT to be borne by the Government, we will try to find a solution for the future1.

• MoF invites IPA and all other petroleum stakehold-ers to work together towards improvement of the relevant laws and regulations; and the enhancement of mutual trust and good cooperation.

1 The IPA notes that the matter of such VAT is covered in our letter No.412/BOD/11 dated on 22nd December 2011 to the Minister of Finance, Bapak Agus Martowardojo concerning Minister of Finance Letter No. S-604/MK.017/1998 which regulates that tax on overhead, TSA and related charges coming from Home Office shall be borne by the Government of Indonesia.

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“Indonesian Upstream Perfor-mance 2001 - 2010A Review of Activity, Results & Investment Trends.

Chris NewtonAdvisor to IPA Board

• In 2011 IPA engaged IHS to provide credible and inde-pendent third party data and analysis on Indonesian explo-ration trends, performance and competitive position.

• Indonesia had increased its global share of block awards and seismic activity but lost market share within SE Asia.

• The increased global share of new blocks and seismic activity DID NOT TRANSLATE INTO AN INCREASED SHARE FOR INDONESIA IN GLOBAL EXPLORATION DRILLING. In-donesian exploration drilling declined in absolute terms and in global and regional share.

• Indonesia’s exploration effi-ciency (boe’s added / explora-tion well drilled) is a standout poor performer globally and regionally.

• Structural shift in upstream participation as the role of the majors was gradually replaced by local companies, INOC’s and small indepen-dents with generally lower exploration capability, risk appetite and exploration funding capacity.

• Indonesian government take from oil and gas is second highest quartile regionally while recent exploration per-formance is bottom quartile.

• Exploration investment will continue to decline until the fundamentals of exploration risk and reward are rebal-anced to the new realities of exploration maturity, gas propensity, reduced prospec-tivity and a more challenging operating environment.

“The Role of Exploration in Meeting Indonesia’s Future Oil and Gas Needs”

John BatesIPA Exploration Committee

• Exploration has contributed less than 20% to Indonesia’s proven reserves replacement ratio over the last 5 years.

• This low contribution from exploration was driven by declining wildcat explora-tion drilling activity and poor exploration efficiency (BOE’s added / NFW).

• With declining production and growing demand ex-ploration will have to play a much great role in satisfying future oil and gas supply in the national energy target.

• New field wildcat drilling levels will have to increase by at least 3X current levels by 2015 and 5X times by 2020 if conventional exploration is to satisfy only half the supply – demand gap.

• Oil and gas exploration investment in Indonesia is in crisis and radical measures are needed to enhance in-vestment and ensure future oil and gas supply for the nation’s energy needs.

IPA High Graded Recommenda-tions to increase exploration In-vestment and Reserves growth.

• Consideration to reduction of micro-management of PSC’s during exploration phase to speed up exploration operations cycle time and cut costs.

• Data access and manage-ment procedures could be thoroughly over-hauled and replaced by a system which promotes rather than deters investment.

• Consideration to elimination of all forms of taxation from exploration phase activities.

• Consideration to removal of requirement to utilize PTK-007 during Exploration Phase.

• Award of blocks in bid rounds should be made to bona fide companies having “financial ability, technical competence and professional skills necessary to carry out the Petroleum Operations…”

• Promote a business culture which encourages and favors bona fide exploration compa-nies rather than attempting to penalize the delinquent companies. Such practice significantly decreases exploration operational ef-ficiency and destroys value.

The forum concluded with a brainstorming session and capturing of ideas during which the IPA presented its recommendations solicited from member companies and consolidated into 4 categories respectively : Attrac–ting New Investors, Exploration Operational Efficiency, Data Access & Management and Fiscal Regime & Go–vernment.

It is envisaged that follow-up meetings will be convened for further discussion and drafting of proposals on key issues.

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“Shell sees Indonesia as a key growth country in Asia and important to the Shell’s long term global strategy. We look forward to partnering with the country to deliver benefits to the nation and develop energy to meet the country’s and world’s growing needs.” said Peter Voser, Royal Dutch Shell Chief Executive following his meeting with President Yudhoyono at the State Palace last June.This visit to Indonesia marks a milestone in cementing the more than a century-long partnership between Royal Dutch Shell and Indonesia. Over 120 years ago, following its first oil discovery in Pangkalan Brandan, North Sumatra, the embryo of what is today the number one company in the Global Fortune 500 list was born. “As an Indonesian, I am proud of this achievement because Shell and Indonesia share a rich history”, commented Darwin Silalahi, Shell Indonesia Country Chair and President Director.

Shell has a strong downstream presence in Indonesia. It was the first international petroleum retail brand in the country and is now a leading international oil company (IOC) with more than 62 operating sites in Greater Jakarta and Surabaya. In 2006, Shell started its commercial fuels, marines and bitumen businesses in Indonesia, providing oil products and related technical support to the industrial, transport and mining sectors. Shell is also recognised as a leading international company with the largest lubricant market share, after Pertamina, serving motorists and industrial customers.Shell brings in significant investment to build fuels supply chain infrastructure in Indonesia, in cooperation with its local partners. The fuel storage facilities in Gresik and Pulau Laut, the lubes warehouse facility in Bekasi, Surabaya and Balikpapan, and the bitumen

storage facility in Cirebon, are examples of successful joint ventures with leading Indonesian companies such as Astra International and Adaro Energy.Last year, Shell re-entered the upstream business in the country of its birthplace. It signed an agreement to be the strategic partner with Inpex who operates the Masela PSC which includes the Abadi gas field. Shell’s participation in the Abadi field underpins its growth strategy and recognizes its world leader position in both LNG and Floating LNG (FLNG) developments.

By joining the venture, Shell is bringing its worldwide experience and technological innovation. With over $1 billion invested in research and development (R&D) each year, Shell stands out as the biggest investor in R&D amongst its peers. One of the results of this investment is indeed the game-changing FLNG technology. Shell’s total investment stands at more than $30 billion per year.“We are very keen to work together with the capable company Inpex to materialise this very challenging project as fast as we can. We are contributing our global mega-project experience as well as our FLNG technology expertise, to further enable Indonesia to develop its natural gas resources in a sustainable manner. Natural gas is the cleanest burning fossil fuel – and the world, including Indonesia, needs every low-carbon source of energy it can find”, said Koert Vonkeman, Managing Director for Shell Upstream Indonesia.

SHELL INDONESIA

Company Profile

Shell has been working on FLNG technology for more than a decade, drawing on more than five decades of expertise in LNG technology, LNG shipping and operating offshore oil and gas installations.

Shell was the first to go ahead with an FLNG project – making FLNG a reality.

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small scale LNG technologies, where Shell can uniquely leverage its integrated upstream-downsteam strength.Shell is working actively to identify new upstream opportunities in Indonesia. In our business development effort we focus on areas where we can deploy our strong technical capabilities such as our extensive Deep Water experience, our LNG & FLNG capabilities and our experience in execution of major Projects.

Shell looks forward to deploying its cutting edge technology and apply its global experience in Indonesia, or as Peter Voser puts it, “As a leading global energy company, we intend to strengthen our presence in growth countries and we will forge strong partnerships with Indonesia.”

FLNG opens opportunities to develop offshore gas fields that before were not possible because of their remoteness. Shell believes that FLNG will enable the development of gas resources ranging from clusters of smaller more remote fields to potentially larger fields via multiple facilities where for a range of reasons an onshore development is not viable. This can mean faster, cheaper, more flexible development and deployment strategies for resources that were previously uneconomic, or constrained by technical or other challenges.

Leveraging on Shell’s almost 50 years experience in LNG technology, LNG shipping and offshore operations, Shell is the first company that took Final Investment Decision to build an FLNG facility – to develop the close by Prelude gas field in Australia.

In developing its FLNG technology, Shell adopts the approach that provides the opportunity and flexibility to customise in specific areas. It provides one basic design that can be tailored to specific environments and circumstances. Each subsequent Shell FLNG facility will benefit from repeatability gains, benefiting cost and schedule during construction and procurement – and lead to faster production of LNG and therefore revenue stream.

Shell believes that natural gas will become increasingly important to meet the rapidly rising energy demand in road and marine transportation as well as power and industrial sectors in the emerging markets. An archipelagic country such as Indonesia is also well positioned to embrace the innovative application of

Shell FLNG has a mature design basis – standardised where possible: our designs focus on safety, robustness and high availability to enable continuous, stable LNG production.

The length of the Shell FLNG facility will be more than the height of the Petronas Towers in Malaysia.

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For 43 years TEPI has sustained a strategy of concen-tration and cooperation with the communities located around its operating areas as well as with all stakehold-ers. These CSR programs have followed the evolution of the society and have moved gradually from donation based CSR programs to empowering the communities by creating jobs , improving their welfare and increas-ing economic capacity. To achieve success, the company has to answer not just to the expectations of the local communities but also to the expectations of the local and regional Authorities. The importance of CSR to TEPI is reflected in the organization structure today with a dedicated Division attached to the President Director & General Manager reflecting the great attention to these activities that are an integral part of the growth strategy of the company.

In the community development programs, as part of its Corporate Social Responsibility, TEPI is intensely involved in Education, Research and Capacity Building (ERC), Health and Nutrition (HN), Community Economic Empowerment (CEE), Environment and Alternative En-ergies (EAE) and has established a foundation called “Yayasan Bhakti TOTAL Bagi Indonesia Lestari” for Cul-tural Heritage Preservation. All of these programs and activities are in line with TOTAL’s commitment in re-sponding to the challenges of sustainable development.

Several highlights of the TEPI CSR program are among others:

Education and Research

TOTAL recognizes the importance of preparing pro-fessional and highly qualified personnel. This can be achieved through improved access to higher education within the country as well as overseas through various scholarship programs. In the last ten years, the TOTAL scholarship program has benefitted more than 4,300 students from various levels in Indonesia. There are several scholarship categories i.e. Abroad for Doctor-ate, Masters degree and dual degree Indonesia-France, In country for Masters degree and Off Campus Masters, Undergraduates, junior and senior high-schools.

Currently there are two Doctorate degree scholarships that have been given to a student of Universities Para-madina/ UIN and a staff of the Ministry of EMR. Both are

expecting to graduate by Sept 2012. For Masters degree scholarship program namely Total Group Scholarship (TGS), this year 7 students from various universities have already been selected and accepted in top universi-ties in France. Two sponsored students were enrolled in Dual Degree Indonesia-France in 2012 and 1 student for school year 2012. The first year will be conducted in Indo-nesia with additional French language course and then the second year will be done in France. The graduates will be granted two Master degrees from the University of Indonesia (UI) and the partner university in France. TEPI also supports the so called Off Campus Master pro-gram which involves Total sponsoring the logistics and transportation of the lecturers and the participant’s tu-ition fees and expenses. For the school year 2011/2012, in collaboration with ITB, TOTAL conducted Off Campus Masters in Petroleum Geology which was carried out ev-ery week-end in Balikpapan involving 20 students. For the school year 2012/2013, in collaboration with UI, 20 students will be enrolled on the Off-Campus Masters in Geophysics. Scholarships will also be given for junior and senior high school students, prioritizing army and police children with 90 students per year.

Through TPA (Total Professeurs Associés) based in Par-is, TEPI builds bridges between the oil industry and aca-demic circles by delegating professors or experts (Total senior or retired staff) to deliver technical or business-related presentations. In 2011, 9 TPA members were brought in to share their expertise to 8 universities or training institutions in East Kalimantan and Java while in 2012, 8 TPA members shared their expertise in 8 uni-versities, also in East Kalimantan and Java. On average, 40-50 students and teachers participated in each class of TPA with an examination at the end of the program to check the effectiveness of the teaching for future im-provement.

Similar activities are also conducted domestically through the EVP (Employee Volunteer Program) by del-

CSR

EQUIP - Presentation training for teachers.

Crafting the future with TOTAL E&P INDONESIE (TEPI)

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egating active and retired staff members to deliver tech-nical or business-related presentations to university students and teachers. In 2011/2012, 5 EVP programs have been implemented in Balikpapan, Jogya and Band-ung. TEPI also provided opportunities to share informa-tion about the O&G industry and HSE to 700 students and teachers of the University of Papua in Manokwari.

Two internal teams from TEPI have been prepared to give lectures on “Total Day on Deep Offshore” and “Total Day on Technical Expertise” at several universities in In-donesia, starting September 2012 and beyond.

Through EQUIP (Education Quality Improvement Pro-gram), TEPI in collaboration with the local government, supports education standard improvement programs for 5 high schools in 5 Sub-districts in surrounding opera-tions. This program is implemented by Putra Sampoerna Foundation-PSF. In collaboration with FGPS in associa-tion with SEAMEO QITEP, TEPI will implement sciences improvement program for elementary schools (math, physics and biology). TEPI also provides support to lo-cal education departments and the community groups in the rehabilitation of school buildings and its facilities i.e. class rooms, libraries, and toilets. This year three schools have been chosen as first priority.

Health and Nutrition Program

Every village in the Mahakam Delta has a health cen-ter with a minimum number of paramedics who provide public health services for local people. So far, Anggana community health center is the only place where people can get adequate basic health services. For more seri-ous services or operations, the patient must travel to Sa-marinda or Balikpapan, which takes at least two hours by boat via the Mahakam River. TEPI, working together with the local Health Department, has been implementing development programs to increase the capacity of medi-cal workers in the Mahakam Delta. Since 2007, many

training programs have been implemented for medical workers. Other training provided for medical workers, include care and treatment of premature infants, as well as education to the public on diseases such as dengue fever, drug abuse, campaign of nutrition program, and prevention of HIV / AIDS.

TEPI with support of SAMU training team for medical and emergency in collaboration with the health related institutions such as the Department of Health, SAR and PMI has conducted comprehensive training to prevent and handle various situations and emergencies. The program is known as the Community Based Emer-gency Preparedness Program. Some of the outcomes of these activities include: 118 ambulance services in Balikpapan, community preparedness during and post emergency situation, training of HSE (Health, Safety and Environment) for high school students and community leaders. The success of the 118 ambulance services in-troduced by SAMU has triggered the local government to expand its ambulance services to other cities i.e Sa-marinda, Tenggarong and surrounding areas.

Environmental Improvement Program

In the last 10 years, the Mahakam Delta has changed rapidly, with large increase in transportation activities on the river and with the intensification of shrimp ponds, fish and crabs along the coast. This affects a natural ecological balance in the region, especially with the deg-radation of the ecosystem support such as mangrove and nipa palm.

TEPI uses less than 4% of the Mahakam Delta, neverthe-less the company has established all around its instal-lations a large green belt and re-greening of the ROW. In addition, TOTAL is very concerned about the deterio-ration of the ecosystem of the Mahakam Delta and has

Oil spill training for community in Samboja Sub-District.

One million mangrove planting with communities at Muara Ulu Kecil.

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responded by enforcing the planting of one million man-groves per year. TOTAL has encouraged the communi-ties from Muara Jawa, Muara Pantuan and Tani Baru villages to participate actively in the replanting of man-groves and intensification of Sylpho-fishery, a shrimp/fish environmentally sound cultivation program.

Alternative Energy Development Program

Many communities living in the Mahakam Delta do not receive electricity service from PLN or other sources. Solar energy is an energy source that is abundant and suitable for Indonesia. Considering solar energy as a vi-able and suitable alternative, TEPI has introduced Solar Home System (SHS) through a micro financing mecha-nism to the community members in need. Currently 100 units of SHS have been installed in the Muara Pantuan and Tani Baru villages. To accelerate the process, an as-sessment has been conducted with several banks who are expected to manage the micro financing system.

Program for Community Economic Development and Capacity Building

TEPI has developed special training programs to en-courage entrepreneurship in relation with oil and gas services such as dredging, drilling, scaffolding and weld-ing. To increase the chance of success for these people to create their own business, TEPI also provides training in management and finance so that they become eligible to participate in the bidding process in TOTAL and in other companies. Out of more than 80 contractors who have been trained, 24 have been awarded a contract or sub-contracts from TOTAL. The rest still need to receive technical guidance and management and this effort will continue to be provided so they can get contracts and sub-contracts from TEPI and other industries.

Besides job creation through contractors, TEPI has also encouraged the establishment of small and medium

enterprises (SMEs). Until now, there have been more than 9,000 SMEs, both individually and incorporated in the range of cooperatives built by the local communities with TEPI support. The various support industries that have benefitted from TEPI support include dairy farms, cottage industries, crabs and shrimp farms, plantations and processing of coffee, rubber, etc..

So far, 11,429 members of the public have received fi-nancial support and micro credit, 3,410 participants have received technical skills training, 86 contractors / sub contractors have received training in management and financial administration, and 740 farmers trained in sylfofishery shrimp cultivation .

To accelerate local economic development, TEPI encour-ages the food and fruit industries to enter intothe supply chain. Various products such as fish crackers / amplang will be one of the food provided by a catering company contracted by TEPI to serve thousands of people every day.

Cultural Preservation and Development Program

The TOTAL Foundation (Yayasan Bakti Total bagi Indo-nesia Lestari) was established to assist the country in sustaining and conserving the diverse cultural heritage of Indonesia. The Yayasan is currently implementing large programs such as the preservation of the Dayak tribe crafts by providing training on specific culture and traditional know-how to recover the skills of their an-cestors, empowering the community by providing open access to markets. TEPI in collaboration with the local government is moving towards the establishment of a conservatory of handcrafts, revitalization of plait work/ fragile traditional heritage and facilitation of the estab-lishment of rattan/bamboo plantations as the raw mate-rials of their handcraft. TEPI also provide support for the Tari Jepen Festival, one of the old famous tradi-tional dances of the Kutai tribe in East Kalimantan. In collaboration with the Museum Wayang DKI Jakarta, The Senawangi Foundation, PEPADI (In-donesian Pupeteers As-sociation), TEPI supports the Festival Wayang 2011 and 2012. The festival has been attracted thousands of community members to enjoy the series of wayang performances.

Dayak handicraft training at TOTAL Foundation Booth on In-ternational Maritime Festival in Brest, France.

Life skill training of mangrove fruit processing for cakes and snacks in Tani Baru Village.

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News Flash

IPA Breaking of the Fast with Stakeholders 2012

As in the previous year, the IPA held a “Buka Puasa” (Breaking of the Fast) with all stakeholders on August 7, 2012 at the Dharmawangsa Hotel which was attended by IPA Board, Committees, Company members, government officials from Migas and BPMIGAS.

As Holy Month of Ramadhan is the time for us to share with others, the IPA took the opportunity to continue its “IPA Care Program” by giving support to “Sekolah Kami”, a school established in 2001 for around 150 scavengers and disadvantaged children located in the Bekasi area. A donation of 75 million rupiahs was symbolically handed over by Pak Sammy Hamzah, IPA Vice President to Ibu Irina Amongpradja, the principal of the school, to provide funds to renovate the school facilities (new school desks and chairs) and to fix the fish ponds (as a mean to teach the children about fish farming and as the fish could be a source of nutritious food for the children).

In this occasion, the children of “Sekolah Kami” presented a beautiful angklung orchestral performance (Indonesia’s traditional musical instrument made of bamboo) which was very entertaining to the audience.

Ibu Irina from “Sekolah Kami“ received donation from IPA which was presented by Pak Sammy Hamzah.

Children from “Sekolah Kami“ presented a beautiful angklung performance.

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PROFESSIONAL DIVISION

Editor’s Note

Stephen ScottEditorIPA Professional DivisionGenting Oil (Kasuri) Pte. Ltd.stephen.scott [at] gentingenergy.com

Having received positive feedback from several members regarding the “short stories” I penned for the last newsletter I will continue in the same vein for this newsletter. Hopefully, these notes serve to remind us of important aspects of working within both a professional environment and the industry we serve.

Story 1 (The Value of Data):

In late 1982 I had moved from cold Alaska to hot Houston, Texas to work offshore Gulf of Mexico (GOM) exploration. The first area wide lease sale was slated for 1983. This lease sale would be different in that instead of only nominated blocks being up for grabs all un-leased blocks would be available. This was a time of great excitement among oil and gas companies working the Gulf because there was the perceived promise of being able to “win” a block with little competition or fear of being the winner of the block from among many bidders and thereby suffering the dreaded “winner’s curse”. My geological partner and I had been assigned to offshore Ship Shoal, Louisiana. Among the several blocks we elevated to bid status was one in which the east side of the mapped structure and closure was at risk because we were missing one of the 2D seismic lines that was shown in the data base. But the other seismic data defining the prospect made the opportunity compelling and we risked the prospect appropriately so that the bid reflected the risk. As I recall the lease sale was to be on a Monday morning in Nau’lins (that’s New Orleans for those who have not studied Gulf Coast American English) so our management and evaluation/bid team headed out from Houston on Saturday. I was excited that we were going to bid on several blocks me and my geo-partner had worked, including this particular block. Still, there was some nagging doubt about the prospect due to the missing 2D seismic line which might anchor the east

side of the closure better. The doubt was enough that I decided to go in to the office on Sunday morning and keep combing the files looking for the missing seismic line (in those days they were all paper sections and films). In late morning I found the “mystery” seismic line misplaced several file cabinets away. I quickly brought it to my drafting table to interpret key horizons and incorporate the information into my map. When I did, the prospect died. The previous dashed line closure opened up to the east. I was embarrassed because I had “sold” the prospect and I was worried because I felt I might have been too optimistic. And I only had a little over 3 years of experience at that time. First I thought: will I be fired? Then I thought: what should I do? But I quickly came to the decision that the right thing to do was to call the management team in New Orleans and tell them what I had discovered and to tell them not to bid on the block. I did so late Sunday and they acknowledged a need to cancel the bid; but I sensed disappointment. After the lease sale, upon their return, I was worried that I would be reprimanded. Instead, I was praised for my tenacity and consideration to call them about my findings and prevent the company from wasting money on a bid. I went on to work for that company for 17 more years until they were bought out. I discovered that I should not let personal pride or fear prevent me from doing the right thing on behalf of the company.

Story 2 (Realistic Management Expectations):

During most of my career I have worked in technical rather than managerial positions rising as high as senior exploration advisor in one company. While position title means very little to me I do concede that it affords one “access to ears”. However, during two periods of time I did serve the company I worked for in positions where I managed staff and projects. Having been on both sides position wise, so to speak, I believe it fair to advise management herein, as I have done face to face in the past. Managers of technical staff, remember your own time doing technical work day to day and don’t forget how long it takes to interpret a fresh 2D seismic or 3D seismic data set or to correlate all those well logs or to construct maps or to build a geologic model. Please do not dictate unrealistic turnaround time on projects. And if you have

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never actually done the work that your staff is about to undertake please listen to their advice in regards to a reasonable timeline. I have found that attempts to compress interpretation timelines are especially prevalent regarding interpretation of new seismic data sets, especially if the data are 3D seismic. It can take more than a year to plan, tender and award a seismic project, several months to more than a year to acquire it and several more months to process it. But more often than one might imagine there is an expectation that the interpretation should only take weeks. Explorationists, have you been there? Once I took delivery of a 2500km2 marine 3D seismic survey that needed to be interpreted to highlight prospectivity and locate a commitment well. As I recall, the 3D seismic volume arrived on October 1 of that year and our group manager (also my friend I might add) told me we needed to have a location by end of November. I thought for a few minutes and replied it would not be possible to accomplish the interpretation in 2 months, but he insisted it needed to be done in two months. It is important to point out that our manager and my friend had never actually interpreted a 3D seismic volume. I replied to him that if the interpretation of the 2500 km2 3D seismic volume needed to be completed in 2 months he would need to find someone else to do it as I was not capable of doing a thorough job in that length of time. Days later when he asked how long it would take, I indicated at least 4 months, but possibly 6 months as this was an area initially impacted by extension tectonics and later by transpressional and compressional tectonics and the later overprinted the former. Our manager reluctantly accepted the proposed timeline. It actually took me and my geologic partner about 8 months to complete all the necessary work to decision the deepwater location of a well that was going to cost at least $50 million. The block had been picked up on a sparse 2D seismic data set and the geologic picture provided by that totally changed with the 3D seismic volume. What appeared to be the best prospect was drilled. The well cost more than doubled due to abnormally high pressure. The well was P&A’ed. Managers, think about a reasonable and realistic timeline in concert with your staff. Explorationists, don’t allow yourself to be trapped within a timeline you believe to be unrealistic.

Story 3 (Risk Analysis and Geologic Chance Factor):

Risk analysis is an important component of exploration, especially in regards to wildcat exploration. I’ve worked for a number of companies and all of them have had their own approach to risk analysis in regards to geologic chance factor (GCF). Many company’s methods are similar in a fundamental way but some get very elaborate, almost to the point of being too complicated for the average mind to understand. I remember one of the first times I actually thought about risk analysis and chance factor, although I was not using those expressions at the time. My first job, at age 13, was a dishwasher in a small Greek restaurant at the only “mall” in our town. Mr. Pete, the owner/entrepreneur, and his wife Mrs. Silvie had emigrated from Greece a few years earlier. Sometime Mr. Pete would ask me to also peel potatoes to be used to make potato salad when his wife Mrs. Silvie was too busy to do it. Mr. Pete was hardworking and enterprising and seems he was always looking for an opportunity to increase his fortune in life. I remember Mr. Pete proposed a potato peeling contest between me and Mrs. Silvie. If I won I would get 5 times my hourly pay, but if I lost he would keep 3 times my hourly pay. My pay was only $1/hr, but the thought of an extra $5 played on my mind and psychology. But so did Mrs. Sylvie’s potato peeling skills; I had watched her peel potatoes before. Finally, I decided the apparent reward of an extra $5 was not worth the risk of losing $3 of pay, since I only made $15-$18/week, so I declined Mr. Pete’s offer. I often wonder if Mr. Pete was trying to teach me a valuable lesson in life. As we age and grow older our personal risk tolerance usually changes (there’s a reason that most of the F1 and MotoGP drivers are between the ages of 18 and 30 and not 40-50). As we age we naturally become more risk averse in our personal lives (I’ve only driven my car over 180 kms/hr over a short stretch several times in the last several years). So what does this have to do with working in the petroleum industry? It is a bit ironic I think that as we grown in professional experience (as we age as well) there is a tendency to become more risk averse. Are we able to separate our natural risk aversion regarding our personal life from the need to appropriately consider risk in our profession, especially when it involves exploration? It seems to me that quite often professional experience versus risk tolerance becomes inversely related. As we gain more experience through exploration success and failure we should use what we learn to constrain risk and counter balance our natural tendency.

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Story 4 (Experience, Age and “Old” Geoscientists):

I know I am dating myself when I bring up the industry downsizing and staff purging that started in 1985. That was a time when most of my mentors were either given the opportunity to depart with an attractive severance package or they were ushered out due to forced ranking. As cliché as it sounds nowadays, the industry lost a lot of good petroleum geoscientists at that time. A lot of bright “30 Something” staff remained behind to try to fill in the gaps. And although there were still “20 Something” young geoscientists still entering the industry, university enrollments declined. Much has been written about this so I will not belabor the points herein. But I do believe that it took almost 10 years to recover from that and although I have not seen broad company statistics on the subject I would wager a bet that most companies did not have significant exploration success during the ensuing 10 year period. It took an additional 10 years for the geoscience staff in many companies to gain value adding experience and confidence in exploration. I believe broadly experienced, well read, dedicated geoscientists get better at their profession with experience and age and I’m not just saying that because I fit into the experience

and age categories. “Experience” also means being able to test ideas and that generally means being able to drill prospects developed by their team and approved within their organizations. Staff having broad experience which includes having been a principle or part of team bringing prospects to fruition and testing them via the drill bit (especially those who have had their share of “failures”) usually have the confidence to step out and recommend taking calculated risk. However, as noted in the earlier story I believe we have to guard ourselves against the natural tendency toward risk aversion in our personal lives and make sure that does not unreasonably impact our professional decisions. I remember interviewing with a mid-size US independent in Houston back in the late 1990’s. They gave me their most recent company newsletter magazine. This company had made substantial gas discoveries in Egypt and they had effectively dedicated this particular newsletter magazine to a geologist who they claimed was mostly responsible for the exploration concepts that opened the play and led to the gas discoveries in Egypt. The magazine included the story behind the geologist and the discoveries. I still remember one of the quotes the geologist made and that was (paraphrased), “Most of the significant oil or gas discoveries that have been attributed to me occurred after I was 55 years old”. We should all remain hopeful to have such a legacy.

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Professional Division Chairman’s Corner

Ron NobleChairmanIPA Professional DivisionNiko Resources Ltd.rnoble [at] nikoindonesia.com

Professional Division Members and Friends,

At the time of this writing, two important events are hap-pening. Firstly we are approaching the Lebaran holidays to celebrate the end of Ramadan fasting month. For those living in Jakarta, besides the religious significance, this also marks a change in the pattern of our daily lives – yes, the traffic. We are seeing the traffic reach a peak, as people are busy shopping for the holidays, and then a rapid decline as folks set off for out of town destinations. Discussing traffic with Jakartans is like talking about the weather to the British. It is on everyone’s mind, it affects how we feel, and everyone has an opinion.

Speaking of the British, the second big event is the Lon-don 2012 Olympics. It’s been fantastic to watch the ath-letes perform, in so many different sports. By virtue of the time difference, I must admit to watching non-prime time events that normally I would not pay attention to. The interesting aspect is not necessarily watching the sport itself, but carefully observing the athletes partici-pating in the sport. There is so much motivation, dedi-cation, training, and hard work on display that it feels totally inspirational to bystanders. Just imagine how many years are spent to make themselves the best at their event. As industry professionals, we can learn from these young people. If you work hard, apply yourself and focus on the goals, you will have a high chance of suc-cess in whatever you do. If you sit back and let others around you do the work, there will be no medals coming your way.

So on that note, I wish all our Muslim colleagues a happy and safe Idul Fitri. And for all of us non-Olympians, let’s gain inspiration from what can be achieved by hard work and dedication, and apply that to our daily lives in the petroleum industry.

1. Title : Fundamentals of Seismic Data Pro-cessing for Geologists and Geophysi-cists

Instructor : Prof. Dr. Suprayitno Munadi & Humbang Purba, Msi - PPPTMGB “LEMIGAS”

Dates : October 1 - 5, 2012

Venue : Sheraton Bandung Hotel & Towers, Indonesia

Cost : US$ 2,500 (IPA Member) US$ 2,600 (Non- IPA Member)

2. Title : Geological Application of Well Logs

Instructor : Jenny Garnham - Independent Consul-tants, UK

Dates : October 29 - November 2, 2012

Venue : Novotel Nusa Dua Bali - Indonesia


3. Title : 3-D Seismic Interpretation Techniques

Instructor : Alistair R. Brown - Consulting Reservoir Geophysicist, USA

Dates : November 26 - 30, 2012



4. Title : Carbonate Sedimentation, Sequence Stratigraphy & Reservoir Characte–rization

Instructor : Dr. Rick Sarg - Subsurface Consultants & Associates, LLC - USA

Dates : December 10 - 14, 2012


Cost : US$ 4,000 (IPA Member)US$ 4,100 (Non- IPA Member)

For registration and detail information, please contact:IPA SECRETARIATIndonesia Stock Exchange Building - Tower 2, 20th Floor (Suite 2001)Jln. Jendral Sudirman Kav. 52-53Jakarta 12190 - Indonesia

Telephone : (62-21) 515-5959Facsimile : (62-21) 5140-2545; 5140-2546E-mail : [email protected] or [email protected] or [email protected]

Professional Division Activities 2012

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activity. Pak Priyono gave an excellent summary of the activities and issues in the Indonesia O&G industry. We look forward to next year’s talk.

In April Jamie Higton, of Neftex, London gave a presentation on “Integrating Eustasy and Tectonics in SE Asia and Why it Matters” to an audience of over 60 at the Four Seasons Hotel. Jamie, who leads Neftex’s South East Asia sequence stratigraphic work, used case examples from northwest Borneo, southeast Vietnam and the Makassar Straits to illustrate how stratigraphic correlations from basin to basin makes it possible to evaluate petroleum systems elements both in terms of their relationship to global sequence systems tracts and to regional or local tectonic events. He demonstrated application to source rock facies distribution as well as deep water turbidite reservoirs and reminded us all over the importance of looking for and understanding local events in the basins where we work.

Finally, in July Graziano Capone of Eni Indonesia made a very relevant presentation titled “Experience of reservoir evaluation without conventional DST in deep water wells –learnings for Indonesia” to an audience of more than 50 at the Four Seasons Hotel. Graziano has a long experience in drilling deep water exploration wells and is operations geology team leader for Eni Indonesia and the author on several SPE and IPA papers. In deep water drilling, where expensive rigs and strong environmental constrains are required, DST’s are not always recommended, especially in exploratory and appraisal wells. Graziano discussed the pros and cons of using DST’s or alternative technologies for reservoir characterization. He presented two case histories in which the smart use of high technology tools and data interpretation modeling became the key to interpretation in anisotropic thin laminated reservoirs.

If you missed any of these talks then you missed out on discussions of current and relevant topics to the E&P industry. Come and enjoy excellent technical presentations, a great lunch and network with others working in the Indonesia O&G industry!

Luncheon Talks 2012

The first half of 2012 has seen four luncheon talks.

In February Samuel Gray of CGGVeritas, Calgary presented “A Brief History of Depth…and Time Seismic Imaging”. Samuel’s talk was held at Le Meridien Hotel with 60 people in attendance. With awards for best paper in GEOPHYSICS and The Leading Edge, best presentation at SEG and CSEG meetings, and also having served several times as an Associate Editor of GEOPHYSICS Samuel Gray was the perfect speaker to explain this subject. He took the audience through the developments in seismic imaging and explained the varying forms of data migration that are applied today providing a balanced review and also highlighting shortcomings and approximations in the technology. He concluded that while migration is a mature subject it not a finished one by any means with many areas requiring further development.

In March, Pak Priyono, Head of BPMIGAS, presented an eagerly awaited talk titled “Summary of 2011 E&P Activities in Indonesia and Outlook for 2012” and there were over 240 participants at the Ritz Carlton Hotel Pacific Place listening attentively to Pak Priyono’s words. The talk addressed six major items: oil and gas upstream performance in 2010, 2011 oil and gas targets, major issues affecting the industry, an evaluation of production in Indonesia, PSC commitment issues and finally BPMIGAS initiatives. Activity in Indonesia is at an all-time high with more PSCs than ever before and increasing investment year-on-year, especially in production related

Stephen J. HayStatoil

(021) 2758-8415stehay [at] statoil.com

February’s Luncheon Talk with Samuel Gray of CGGVeritas.

July’s Luncheon Talk with Graziano Capone of Eni Indonesia.

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Field Trip

Walter ZizaFieldtrip ChairmanIPA Professional DivisionTalisman (Asia) Ltd.wziza [at] talisman-energy.com

Field Trips 2012

In the first semester of 2012 the IPA organized a number of educational fieldtrips across the Indonesian archipelago for members and non-members of the Association. The colleagues of the petroleum and service companies working in the country have taken advantage of these field trips to enhance their knowledge of the geology of Indonesia. Three field trips have been conducted so far, covering some classic areas of interest for the oil and gas industry. Two other field trip are firmly planned in the next few months and IPA is actively promoting additional new initiatives.

Geological Trip to Cepu Area for Non-Geoscientists

The first trip of the year was the classic Geological Trip to Cepu Area for Non-Geoscientists, conducted by Yohannes Koesoemo, from 19th to 23rd February, in the Solo-Kuwu-Cepu-Porong-Suramadu area, with a total of 16 attendees.

This trip is intended as an introduction to the petroleum system of the northeast Java Basin, a very well known and historical hydrocarbon province of Indonesia. The main aspects of the exploration methods and associated

drilling activities, production operation, traditional and modern, are described in detail during the four days of this trip.

Modern and Ancient Mahakam Delta Sedimentology.

The second trip of the year was another classic technical trip dedicated to geoscientists: Modern and Ancient Mahakam Delta Sedimentology. It was run in March and conducted by Irfan Cibaj (Total) as leader, with a total of 15 attendees. We greatly appreciate the assistance of Total E&P Indonesie in making this trip possible.

The field trip was split into three phases: the first day was spent in the modern Mahakam delta, observing main sedimentary processes of a modern deltaic system. The following three days were dedicated to the outcrops around Samarinda to examine rocks equivalent of the subsurface formations: turbidites, carbonate rocks, shelf deposits and deltaic deposits with distributary channels and mouth bars. Finally half a day was spent into the lab to examine a number of cores made available by the industry.

Equatorial Carbonate Systems: Pulau Seribu – A Modern Analog for Miocene Carbonates of Indonesia.

As announced by the end of last year, the IPA field trip activities have been enriched by another new field trip. From 9th to 11th May Dr. Robert (Bob) Park conducted a new kind of educational trip in a equatorial carbonate environment, the Pulau Seribu archipelago.

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Photo group at Ledok Field.

Observing fluvial channel and month bar deposits, Prodelta, delta front, delta plain facies in one individual deltaic cycle in the Jalan Panjaitan Section.

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The main topic of the field trip to the Pulau Seribu (Thousand Islands) was the study of the modern carbonate depositional environments: Dr. Park, the trip leader, is a widely recognized geological expert of carbonate systems. In addition, Dr. Alit Ascaria (carbonate expert at Talisman Energy) attended as co-leader of the field trip.

The main activities and objectives of the trip were:• an introduction to a modern carbonate depositional

system and through this develop an awareness of the controls in play and concepts arising;

• the consideration of the role of diagenesis and ultimately the preservation potential of the various elements within the system;

• through these elements develop means of providing a rational basis for hydrocarbon exploration models and develop strategies.

The course triggered several discussions on:

• Sequence Stratigraphic concepts in Carbonates• Controls on Carbonate Sedimentation• Carbonate Reservoirs geophysical applications and

case histories • Carbonates through time (importance and relevance

of Pulau Seribu as an anlog to the Miocene of SE Asia)

• Temperate vs Tropical carbonate systems• Carbonate minerals in nature• Diagenesis – Karst and Dolomitization

IPA Field trips program H2 - 2012

Looking forward to the second semester of 2012, the field trips proposed are classic field trips in the East Java region.

“East Java: Exploration, Drilling and Production” from 18th to 22nd September dedicated to non-technical staff.

“Kerek Turbidite Sequence Stratigraphy, Clastic Ngrayong Sand Reservoir and Prupuh Carbonate Reservoir in the NE Java Basin” from 9th - 13th October for technical staff.

Both field trips will be lead by H.M. Yohannes P. Koesoemo (PT. Hankenina Petroleum Indonesia)

Our commitment is to improve the offer of geological trips and be able to satisfy the requirements coming from industry and academia: therefore we are open to consider, promote and support other suggestions for educational trips in Indonesia from the colleagues of oil and gas community.

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Drilling Highlights –What’s Since Last Update?

Mark HarrisDrilling Info112 Robinson RoadSingapore [email protected]: +65 6225 1153Mobile: +65 9620 7698

To respect confidentiality, details are minimized unless in the public domain. All information from Drilling Info WEB+ and associated data

listings.

It’s been a while since the last edition, and much has happened in the meantime, so this summary briefly covers the most significant exploration drilling activities from June 2011 up to July 2012.

SUMATERA

Activity resumed in the North Sumatra Basin with PT Pertamina EP drilling the onshore Garcinia 1 gas discovery in Parapat Formation sands to the west of the Pantai Pakam Timur gas field. Offshore, Zaratex commenced drilling in the Lhokseumawe PSC using the “Hercules 208” jack-up. Although hampered by mechanical and hole problems, results for Candralila 1ST and Ratnadewi 1 were encouraging with hydrocarbons encountered in both wells. Further drilling is planned to properly evaluate the objective complex of shallow water prospects.

In the onshore Central Sumatra Basin, Chevron has made a series of discoveries in the Rokan PSC, with Jorang Deep 1 (oil) in Pematang Formation sands, Kokoh 1 (oil and gas) and Lampu DT-1 (oil) both in Pematang and Menggala Formation sands.

The South Sumatra Basin remained the most active basin in terms of numbers of wells drilled. Medco has made minor oil discoveries at Lica 1 in the South Sumatra Extension PSC and Taba 1 (Telisa Formation) in the Rimau PSC, both since delineated. PT Pertamina discovered oil and gas in Talang Akar Formation sands at Barbosela 1, followed by a gas discovery in Batu Raja Formation carbonates at Lavatera 1 and an oil and gas discovery at Piretrium 1 (multiple objectives).

JAVA

PT Pertamina EP continued its successes of recent years in its onshore West Java acreage, commencing with an oil & gas discovery at Kayu Merah 1 (multiple objectives) and followed by further oil and gas discoveries at Pondok Berkah 1 (Talang Akar Formation) and Bambu Gunung 1 (multiple objectives) and a gas discovery at Jati Besar 1 (multiple objectives).

Offshore in the West Java Sea, CNOOC continued exploration drilling in the OSES PSC with an oil discovery in Talang Akar and Banuwati Formation sands at Nadia 1, drilled using COSL’s “Hai Yang Shi You 937” jack-up.

Onshore East Java, PT Pertamina EP successfully appraised the Tiung Biru oil and gas discovery and is now working with ExxonMobil towards the unitization of the Tiung Biru-Jambaran field.

In the East Java Sea, drilling resumed with Pertamina Hulu Energi drilling a series of successful wells to test Kujung Formation patch reefs to the south-east of the KE 38-1 oil and gas discovery for possible tie-in to the KE-38B field development. These were drilled using the “Harvey H Ward” jack-up. Elsewhere, Petronas Carigali discovered gas at Bukit Tua South 1ST in the Ketapang PSC using the “COSLBoss” jack-up . AWE then took the rig and drilled wildcat Atlas 1 in the Titan PSC, a non-commercial (high CO2) gas well. In the Madura Strait, Husky commenced its latest drilling programme also using the “COSLBoss,” with initial well MBJ-1 believed to have been dry.

NATUNA

In the East Natuna Sea Tuna PSC, Premier drilled wildcats Gajah Laut Utara 1 and Belut Laut 1 using the Diamond “Ocean General” semi-sub but with only oil and gas shows encountered. Premier then moved to the West Natuna Sea and drilled Biawak Besar 1 (dry) and WL-5 (Anoa Deep) (gas) in the Natuna Sea Block A PSC using the “West Callisto” jack-up.

ONSHORE KALIMANTAN

Onshore Tarakan, Medco drilled the successful South Sebuku 2 gas appraisal in the Bengara I PSC and is now moving towards field development. In the Kutei Basin, PT Kalimantan Kutei Energi made an oil discovery at Keruing 1 in the West Sangatta PSC, and PT Pertamina drilled the Salmon Biru 1 oil and gas discovery in Balikpapan Formation sands. Also in the Kutei, Salamander successfully drilled the Tutung Alpha 3 gas

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appraisal in the Bontang PSC, and SPC drilled wildcats Naga Utara 1ST and Naga Selatan 1, with the former pending further evaluation as a potentially commercial gas discovery.

MAKASSAR STRAIT

On the eastern side of the Strait, the “GSF Explorer” drillship was used by ConocoPhillips to drill wildcat Kaluku 1 (dry) in the Kuma PSC. The rig was then used by Talisman to drill Lempuk 1X (gas shows) in the Sageri PSC before being taken by Statoil to drill Anoman 1 and Gatotkaca 1 (both dry) in the Karama PSC.

On the western side of the strait, results were far more successful. Using the “Saipem 10000” drillship, Eni made a significant gas discovery with Jangkrik NE-1 in the Muara Bakau PSC, immediately being successfully delineated by Jangkrik NE-2 and, later, Jangkrik NE-3ST using the “Discoverer Seven Seas” drillship. Also in the Muara Bakau PSC, Eni discovered further gas with the Katak Biru 1ST wildcat using the “GSF Explorer.” Meanwhile, Total had discovered oil and gas at West Mandu 1 using the “Raniworo 201” jack-up in the Mahakam Offshore PSC.

SULAWESI

Onshore Sulawesi, Tately drilled wildcat KD-1ST (oil shows) in the Lariang Basin Budong-Budong PSC and Japex drilled wildcat Benteng 1, a non-commercial oil discovery, in the Buton PSC.

MALUKU & PAPUA

Onshore Seram, CITIC discovered minor gas at Nief Utara B-1 in the Seram PSC. Meanwhile, onshore Papua, Genting has drilled successful gas appraisal wells Asap 2XST and Asap 3X in the Kasuri PSC, confirming the multi-Tcf “KWA” gas discovery in Roabiba Formation sandstones. PetroChina has drilled several wells in the Kepala Burung PSC and discoveries were confirmed at North Klalin 1 (gas) in the pre-Kais and Walio Ext 1 (oil) in a Kais Formation reef.

Offshore, results were disappointing for the operators of several high profile wells. These comprised CNOOC wildcat Sindoro 1 (dry) in the South East Palung Aru PSC, drilled using the “Energy Searcher” drillship, Murphy wildcat Lengkuas 1 (dry) in the Semai II PSC, drilled using the Diamond “Ocean Rover” semi-sub, and Hess wildcats Andalan 1 and Andalan 2 (both dry) in the Semai V PSC, also drilled using the “Ocean Rover.”

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Global E&P Calendar

Simon CrellinDirector, Petroleum ServicesDeloitte LLP (UK)email: sicrellin [at] deloitte.com

2012Asia Pacific Conferences and Exhibitions

Sep 5-7Oil & Gas Thailand 2012 (& Petrochemical Asia 2012)BangkokExpoconsultwww.expoconsult.co.in

Sep 11-13Asia Pacific Petroleum Conference (APPEC) 2012SingaporeAce Conferences & Eventswww.ace-events.com.sg

Sep 16-19AAPG 2012 International Conference & Exhibition (ICE)SingaporeAAPGwww.aapg.org

Sep 19-203th Annual FPSO Congress 2012SingaporeIQPCwww.fpsoasia.com

Oct 21-24National Data Repository (NDR11)Kuala LumpurEnergisticswww.energistics.org

Oct 22-25Singapore International Energy WeekSingaporeEnergy Market Authority (EMA) Singaporewww.siew.sg/conferences

Oct 24-25Gas Asia SummitSingaporeDMG Eventswww.dmgevents.com

Oct 29-Nov 12nd Annual Vietnam Offshore Oil & GasHo Chi Minh CityIBC Asiawww.vietnamoffshoreoilgas.com

2012 Asia Pacific Training Courses and Workshops

Sep 3-7 Coring and Core Analysis Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Sep 3-7 Well Test Design and Analysis Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Sep 3-7 Production Technology for Other Disciplines Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Sep 3-7 Surface Facility Production Operations Yogyakarta NExT www.nexttraining.net

Sep 3-14 Production Operations I Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Sep 10-14 Basic Drilling, Completion and Workover Operations Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Sep 10-14 Seismic Interpretation Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Sep 10-14 Completions and Workovers Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Sep 10-14 Enhanced Oil Recovery Methods: Theory and Applications Bangkok NExT www.nexttraining.net

Sep 10-14 Gas Processing and Conditioning Bangkok NExT www.nexttraining.net

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Sep 10-14 Clastic Sedimentology for Exploration and Development Bali NExT www.nexttraining.net

Sep 10-14 Integrated Sequence Stratigraphy Kuala Lumpur PetroEDGE (Quote SEAPEX or IPA for 5% discount)www.petroedgeasia.net

Sep 17-19 Operating Company/Service Company Dynamics: How E&P Gets Done Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Sep 17-20 Primary Cementing-Cementing I Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Sep 17-21 Well Log Interpretation Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Sep 17-21 Petroleum Risk and Decision Analysis Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Sep 17-21 EPEX-World: The E&P Executive Business Simulation Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Sep 17-21 Carbonate Sequence Stratigraphy and Application to Petroleum Reservoirs Bali NExT www.nexttraining.net

Sep 17-28 Drilling Practices Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Sep 20-21 Vessels for Offshore Field Developments and Floating Production Systems Singapore IBC Asia www.ibc-asia.com/vessels

Sep 24-25 Petroleum Geology for Non-Geologists Kuala Lumpur PetroEDGE (Quote SEAPEX or IPA for 5% discount) www.petroedgeasia.net

Sep 24-26 Deepwater Oil & Gas Production Facilities, Installation and Opera-tions Singapore IBC Asia www.ibc-asia.com/deepwater

Sep 24-28 Production Geology for Other Disciplines Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Sep 24-28 Structural Styles in Petroleum Exploration Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Sep 24-28 Drilling Fluids Technology Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Sep 24-28 Shaly Sand PetroPhysics Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Sep 24-28 Advanced Seismic Interpretation Yogyakarta NExT www.nexttraining.net

Sep 24-28 Structural Geology and Seismic Interpretation for Petroleum Explora-tion and Production Singapore Nautilus www.nautilusworld.com

Sep 24-28 International Petroleum Contracts and Practice in Negotiations Kuala Lumpur PetroEDGE & Fugro Robertson www.petroedgeasia.net

Sep 26-28 Fundamentals of Seismic Interpretation for Non-Geophysicists Kuala Lumpur PetroEDGE (Quote SEAPEX or IPA for 5% discount) www.petroedgeasia.net

Sep 30-Oct 4 Oil and Gas Reserves Evaluation Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Sep 30-Oct 4 Oil and Gas Reserves Certification Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Oct 1-5 Analysis of Structural Traps in Extensional Settings Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Oct 1-5 Basic Drilling Technology Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Oct 1-5 Managing Wellsite Operations Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Oct 1-5 Advanced Formation Evaluation Yogyakarta NExT www.nexttraining.net

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Oct 1-5 Reservoir Optimization using Applied Oilfield Manager (OFM) Yogyakarta NExT www.nexttraining.net

Oct 1-5 Monitoring and Regulation of the Upstream Petroleum Sector Kuala Lumpur PetroEDGE (Quote SEAPEX or IPA for 5% discount) www.petroedgeasia.net

Oct 8-9 LNG Market Development and Training Singapore IBC Asia www.ibc-asia.com/lngmarket

Oct 8-19 Gas Conditioning and Processing Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Oct 8-12 Artificial Lift Systems Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Oct 8-12 Assuring Flow from Pore to Process Yokyakarta NExT www.nexttraining.net

Oct 8-12 Analysis of Production Performance Curves Yogyakarta NExT www.nexttraining.net

Oct 14-17Flow Assurance (workshop) Phuket SPE www.spe.org

Oct 15-17Gas & LNG Contracts Singapore CWC School for Energy www.thecwcgroup.com/training

Oct 15-19Foundations of Petrophysics Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Oct 15-19Wireline Formation Testing and Interpretation Kuala Lumpur PetroSkills/OGCI www.petroskills.com Oct 15-19 Petroleum Project Management: Principles and Practices Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Oct 15-19Shale Gas Evaluation - Finding Production Sweet Spots Yogyakarta NExT www.nexttraining.net

Oct 15-19 Basic Reservoir Engineering Kuala Lumpur Nautilus www.nautilusworld.com

Oct 18-19Offshore Oil & Gas Contracts Singapore IBC Asia www.ibc-asia.com/offshoreoilandgas

Oct 22-24 Capillarity in Rocks Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Oct 22-24 Basic & Advance Budgeting and Forecasting in Oil & Gas Kuala Lumpur PetroEDGE (Quote SEAPEX or IPA for 5% discount) www.petroedgeasia.net

Oct 29-Nov 2 Applied Seismic Anistropy for Fractured Reservoir Characterization Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Oct 29-Nov 2 Drill String Design and Optimization Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Oct 29-Nov 2 Basic Reservoir Engineering Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Oct 29-Nov 2 Well Stimulation: Practical and AppliedKuala Lumpur PetroSkillls/OGCI www.petroskills.com

Oct 29-Nov 2 Performance Analysis, Prediction and Optimization Using NODAL Analysis Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Oct 29-Nov 2 Subsurface Facies Analysis - Integrating Borehole Images & Well Logs with Rock Physics and Seismic Data to develop Geological Models Bali NExT www.nexttraining.net

Oct 29-Nov 2 Introduction to the Geological Interpretation of Seismic Profiles Bandung NExT www.nexttraining.net

Oct 29-Nov 2 Geological Application of Well Logs Bali IPA (J. Garnham) www.ipa.or.id

Nov 4-7 Brownfield Redevelopment (workshop) Penang SPE www.spe.org

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Nov 4-9 Deltaic to Deepwater Depositional Systems of NW Borneo - Concepts and Models for Reservoir Prediction (Field Trip) NW Borneo Nautilus www.nautilusworld.com

Nov 5-9 Formation Damage: Causes, Prevention and Remediation Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Nov 5-9 Hydraulic Fracturing Applications Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Nov 5-9 Shale Gas and Oil Production - Exploiting Production Sweet Spots Yogyakarta NExT www.nexttraining.net

Nov 5-9 Workovers and Completions Semarang NExT www.nexttraining.net

Nov 12-16 Crude Oil and Water Treatment Bangkok NExT www.nexttraining.net

Nov 18-21 Deepwater Well Intervention (workshop) Kota Kinabalu SPE www.spe.org

Nov 19-21 Coal Seam Gas Project Reality Singapore CWC School for Energy www.thecwcgroup.com/training

Nov 19-22 Petroleum Project Economics and Risk Analysis Bali IHRDC www.ihrdc.com

Nov 19-22 Introduction to Geophysics Kuala Lumpur NExT www.nexttraining.net

Nov 19-23 Operations Geology Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Nov 19-23 Operations Geology Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Nov 19-23 Dipmeter and Borehole Image Logging Bandung NExT www.nexttraining.net

Nov 26-28 Strategies for National Oil Companies Kuala Lumpur PetroEDGE (Quote SEAPEX or IPA for 5% discount) www.petroedgeasia.net

Nov 26-30 Evaluating and Developing Shale Resources Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Nov 26-30 Seismic Velocities and Depth Conversion Kuala Lumpur PetroSkills/OGCI www.petroskills.com Nov 26-30 Flow Assurance for Offshore Production Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Nov 26-30 Drilling Optimization Bali NExT www.nexttraining.net

Nov 26-30 Characterization, Evaluation and Enhanced Oil Recovery in Naturally Fractured Reservoirs Bali NExT www.nexttraining.net

Nov 26-30 3D Seismic Interpretation Techniques Bali IPA (A.R. Brown) www.ipa.or.id

Nov 26-Dec 7 Applied Reservoir Engineering Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Dec 3-5 Introduction to Petroleum Business Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Dec 3-5 LNG & Gas Contracts and Negotiations Singapore PetroEDGE (Quote SEAPEX or IPA for 5% discount)www.petroedgeasia.net

Dec 3-7 Basic Petroleum Technology Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Dec 3-7 Mapping Subsurface Structures Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Dec 3-7 Fundamentals of Pump and Compressor Systems Kuala Lumpur PetroSkills/OGCI www.petroskills.com

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Dec 3-7 Production Logging Solutions Workshop Lombok NExT www.nexttraining.net

Dec 4-6 Overview of Gas Processing Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Dec 4-7 Petroleum Exploration and Production Kuala Lumpur NExT www.nexttraining.net

Dec 10-14 Fundamentals of Casing Design Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Dec 10-14 Reservoir Engineering for Other Disciplines Kuala Lumpur PetroSkills/OGCI www.petroskills.com Dec 10-14 Streamlines: Applications to Reservoir Simulation, Characterization and Management Kuala Lumpur PetroSkills/OGCI www.petroskills.com

Dec 10-14 Carbonate Sedimentation, Sequence Stratigraphy & Reservoir Characterization Bali IPA (Dr.R.Sarg, SCA) www.ipa.or.id

Dec 10-14 Petroleum Geology of Deep-Water (Turbidite) Depositional Systems Bali IPA (Dr.R.Slatt) www.ipa.or.id

Dec 17-21 Well Integrity Bandung NExT www.nexttraining.net

*) For more complete list, please visit www.seapex.org.

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PROFESSIONAL DIVISION COMMITTEE MEMBERS

POSITION NAME COMPANY PHONE # FAX # MOBILE PHONE E-MAIL ADDRESS

Chairman Ron Noble NIKO RESOURCES 782-1001 782-2002 0811-800604 rnoble [at] nikoindonesia.com

1st Vice Chairman Dharmawan Samsu BP 7854-8094 7854-9140 0811-880253 dharmawan.samsu [at] se1.bp.com

2nd Vice Chairman Stephen Scott GENTING OIL 527-3828 527-3827 0811-9622901 stephen.scott [at] gentingenergy.com

Secretary Audrey Sahertian IPA 515-5959 5140-2545/6 0812-9296803 audrey.sahertian [at] ipa.or.id

Treasurer Roland Panjaitan HESS 2995-1000 2995-1001 0816-1606800 roland.panjaitan [at] hess.com

Continuing Education H.L. Ong GEOSERVICES 830-5555 831-1454 0811-817600 hlong [at] geoservices.co.id

Sigit Sukmono ITB (022) 250-9167 (022) 250-9167 0811-220756 sigit [at] bdg.centrin.net.id

Field Trips Walter Ziza TALISMAN 2995-7828 515-1571 0812-1085513 wziza [at] talisman-energy.com

Luncheon Talks Stephen Hay STATOIL 2758-8415 2758-8401 0813-17435027 [email protected]

Student Activities Liaison Redo Waworuntu CONOCOPHILLIPS 7854-2183 7854-2282 0811-197295 redo.d.waworuntu [at] conocophillips.com

Membership C.F. Sugembong STAR ENERGY 3002-1530 530-7928 0811-134095 sugembong.cf [at] starenergy.co.id

Newsletter Stephen Scott GENTING OIL 527-3828 527-3827 0811-9622901 stephen.scott [at] gentingenergy.com

Publications Andy Livsey HORIZON 7918-1559 7918-4895 0816-868525 arl [at] horizon.co.id

Balikpapan Chapter Patricius Andri Indhiarto CHEVRON (0542) 756-3347 (0542) 756-3714 0813-81133347 andri [at] chevron.com

Riau Chapter Timbul P. Panjaitan CHEVRON (0761) 933-319 (0761) 942-014 timpanj [at] chevron.com

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Newsletter

January 2012 4th Edition


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