MINISTRY OFMINISTRY OF

E&MRE&MR

© DJMIGAS 310709 11Jakarta, April 29th, 2010

MINISTRY OF ENERGY AND MINERAL RESOURCESDIRECTORATE GENERAL OF OIL & GAS

by :A. Edy Hermantoro

DIRECTOR OF UPSTREAM BUSINESS DEVELOPMETN

POLICY AND OPPORTUNITIESIN INDONESIA OIL & GAS INDUSTRY

MINISTRY OFMINISTRY OF

E&MRE&MR

© DJMIGAS 070410 2

OUTLINE OIL & GAS POLICY AND TARGETS

IN 2025

OIL & GAS CONDITION IN INDONESIA

DEVELOPMENT PLAN ON INFRASTRUCTURE IN THE YEAR 2010-2014

BUSINESS OPPORTUNITIES

MINISTRY OFMINISTRY OF

E&MRE&MR

© DJMIGAS 070410 33

OIL & GAS POLICY ANDTARGETS IN 2025

OIL & GAS POLICY ANDTARGETS IN 2025

MINISTRY OFMINISTRY OF

E&MRE&MR

© DJMIGAS 070410 44

TARGETS FOR 2025TARGETS FOR 2025 Maintain oil production level of

1 Million BOPD

50% national operatorship

Security of domestic fuel supply and industrial feedstock

91% local content (goods and services)

99% skilled national workforce

Achieving oil and gas safety, zero accidents, zero failure, and achievement of zero flares, and zero waste

PETROLEUM POLICYPETROLEUM POLICY Oil and Gas Supply Security

Oil And Gas Utilization

Oil and Gas Pricing Policy

Unconventional Oil and Gas Business

Conservation Of Oil and Gas Production

Increasing National Capacity In Oil And Gas Industry

FUEL POLICYFUEL POLICY Feedstock & Fuel Supply Security Fuel Categorization Pricing Policy Fuel Diversification Fuel Standard and Quality Fuel Efficiency

POLICY POLICY ANDAND TARGETSTARGETSOF INDONESIA OIL & GAS MANAGEMENTOF INDONESIA OIL & GAS MANAGEMENT

MINISTRY OFMINISTRY OF

E&MRE&MR

© DJMIGAS 070410 55

OIL & GAS CONDITIONOIL & GAS CONDITIONIN INDONESIAIN INDONESIA

MINISTRY OFMINISTRY OF

E&MRE&MR

© DJMIGAS 070410

NAD

6.30

1.26

2.68

10.57

3.68

52.14

21.78

23.71

5.30

PAPUA

GAS RESERVES (TSCF)

NATUNA5.55

CENTRAL SUMATERA

SOUTH SUMATERA

NORTH SUMATERA

EAST JAVA

EAST KALIMANTAN

WEST JAVA

SULAWESIMALUKU

15.22

17.74

ACEH (NAD)

PROVEN = 107.34 TSCFPOTENTIAL = 52.29 TSCFTOTAL = 159.63 TSCF

GAS RESERVEGAS RESERVE(AS OF JANUARY 1st 2009)

MINISTRY OFMINISTRY OF

E&MRE&MR

© DJMIGAS 070410 7

INDONESIAN CBM BASININDONESIAN CBM BASIN

Total CBM Basin = 11(Advance Resources International, Inc., 2003)

Signed contract up to the end of 2009: 20 CBM Signed contract up to the end of 2009: 20 CBM PSCsPSCs

MINISTRY OFMINISTRY OF

E&MRE&MR

© DJMIGAS 070410 88

INFRASTRUCTURE INFRASTRUCTURE DEVELOPMENT PLANDEVELOPMENT PLAN

MINISTRY OFMINISTRY OF

E&MRE&MR

© DJMIGAS 070410 9

NEW OIL REFINERIES DEVELOPMENT DEMANDNEW OIL REFINERIES DEVELOPMENT DEMAND

RECENT CONDITIONTotal Domestic RefineriesCapacity : 1.156 MBSD;Fuels Production Year 2008 : 740 MBSD;Fuels Demand Year 2008 : 1.100 MBSD;Fuels Deficit Year 2008 : 360 MBSD (33%).

OIL REFINERIES DEVELOPMENT DEMANDNeeds to build 2 new oil refineries, with eachcapacity around 200 MBSD.

Year Total2010 2011 2012 2013 2014Oil Refineries BOPD 800 - - 200.000 150.000 350.800

Investasi(Juta US$)

20 - - 2.500 4.000 6.520

INFRASTRUCTURE DEVELOPMENT PLAN ON OIL REFINERIES IN THE YEAR 2010 - 2014

0

200

400

600

800

1000

1200

1400

M B

SD

Domestic Capacity Production

Demand Deficit

MINISTRY OFMINISTRY OF

E&MRE&MR

© DJMIGAS 070410 10

Num Explanation Year Total2010 2011 2012 2013 2014

1. Gas Production Facility (upstream)

MMSCFD 1.020 1.375 1.900 13.456 2.510 20.261Investment

(Million US$ Dollar)2.415 2.415 3.220 3.220 4.830 16.100

2. Coal Bed Methane (CBM) Production Facility

MMSCFD 1 8 12 25 40 85Investment

(Million US$ Dollar)5 50 100 150 200 505

3. LNG Refinery MMSCFD - - - 250 - 250Investment

(Million US$ Dollar)- - - 2.200 - 2.200

4. LNG Receiving Terminal

MMSCFD - 400 - 500 - 900Investment

(Million US$ Dollar)- 500 - 400 - 900

5. City gas pipe network*)

House connection 16.000 16.000 16.000 16.000 16.000 80.000Investment

(Million US$ Dollar)20 20 20 20 20 100

6. Transmission network Km 200 420 230 275 250 975

Investment(Million US$ Dollar)

- 220 230 275 250 975

INFRASTRUCTURE DEVELOPMENT PLAN ON NATURAL GAS IN THE YEAR 2010 - 2014

*) Funding from State Budget of Revenues and Expenditures (APBN)

MINISTRY OFMINISTRY OF

E&MRE&MR

© DJMIGAS 070410

Merauke

Grissik

Semarang

Pacific Ocean

AUSTRALIA

Indian Ocean

Bangkok

Phnom Penh

Ban Mabtapud

Ho Chi Minh City

CAMBODIA

VIETNAM

THAILAND LAOS

Khanon

Songkhla

Erawan

Bangkot

LawitJerneh

WESTMALAYSIA

Penang

Kerteh

Kuala Lumpur

Manila

PhilipinesSouth

China

Sea

Sin

gapo

re

Gas

Tr

unkl

ine

Natuna AlphaKota KinibaluBRUNEI

Bandara Seri Begawan

Bintulu

EASTMALAYSIA

Kuching

Banda Aceh

Lhokseumawe

Medan

Duri

Padang

S U M A T R A Jambi

BintanSINGAPORE

SamarindaBalikpapan

Bontang LNG Plant& Export Terminal Attaka

TunuBekapai

KALIMANTAN

Banjarmasin

Manado

SULAWESI

UjungPandang

BURU SERAM

Ternate HALMAHERA

Sorong

IRIAN JAYA

JakartaJ A V A Surabaya

Bangkalan

BALI

SUMBAWA

Pagerungan

LOMBOKFLORES

SUMBATIMOR

I N D O N E S I A

Duyong

Port DicksonPort Klang

Mogpu

Dumai

Batam

Guntong

ArdjunaFields

MADURA

Jayapura

Maluku Selatan

West Natuna

Palembang

Cirebon

4.960

28.490

4.405

18.508

3.202

4.6605.819

Existing Pipeline

Planned Pipeline

LNG Receiving Terminal

CNG Plant

LNG Plant

Reserves P1 + P2 +P3(TSCF)

NAD

5.30

1.26

2.6810.57

3.68

52.14

21.7823.71

PAPUA

NATUNA

5.55

CENTRAL SUMETERA

NORTH SUMATERA

EAST JAWA

EAST KALIMANTAN

WEST JAVA

SULAWESI

15.22

17.74

ACEH (NAD)

SOUTH SUMATERA

MALUKU

GAS RESERVE LOCATION AND INFRASTRUCTURE

MINISTRY OFMINISTRY OF

E&MRE&MR

© DJMIGAS 070410

INDONESIA LNG PLANT AND TERMINAL REGASIFICATIONINDONESIA LNG PLANT AND TERMINAL REGASIFICATION

Start up : 1973, 1983, 1986Gas Producer : ExxonMobilCapacity : 6.8 mtpa (6 trains)

Arun(LNG Plant)

Start up : 1977, 83, 89, 93, 97, 99Gas Producer : Total, VICO, UnocalCapacity : 22.59 mtpa (8 trains)

Bontang A-H(LNG Plant)

Start up : 2009Operator : BP IndonesiaGas Producer : CNOOC BP Nippon

MI Berau BV KGCapacity : 7.6 mtpa (2 trains)

Tangguh(LNG plant)

Start up : 2011Gas Producer : Medco and PertaminaCapacity : 2 mtpa (1 train)

DonggiSenoro(LNG Plant-planned)

Start up : 2016Gas Producer : InpexCapacity : 4 mtpa

Masela (LNG Plant-planned)

Future LNG Terminal RegasificationCapacity = 400 MMSCFD Future LNG Terminal Regasification

Capacity = 300 MMSCFD

Future LNG Terminal Regasification

Capacity = 150 MMSCFD

LNG PlantLNG Plant

LNG TerminalLNG Terminal

MINISTRY OFMINISTRY OF

E&MRE&MR

© DJMIGAS 07041013

LPGLPG REFINERIES IN INDONESIAREFINERIES IN INDONESIASOUTH CHINA SEA

PASIFIC OCEANPT. MARUTA BUMI PRIMALANGKATCAPACITY : 17 MTPA

PT. PERTAMINA (PERSERO)UP II DUMAICAPACITY : 140 MTPA

PETROCHINATJ. JABUNGCAPACITY : 500 MTPA

PT. MEDCO LPG KAJIKAJICAPACITY : 72 MTPA

PT. TITS SAMPURNAPRABUMULIHCAPACITY : 72 MTPA

PT. SURYA ESA PERKASALEMBAKCAPACITY : 45 MTPA

PT. PERTAMINA (PERSERO)UP VI BALONGAN DAN MUNDUCAPACITY : 396 MTPA + 35 MTPA

PT. SUMBER DAYA KELOLATUGU BARATCAPACITY : 7 MTPA

PT. ODIRA ENERGY PERSADATAMBUNCAPACITY : 54 MTPA

CHEVRONTJ. SANTANCAPACITY : 90 MMTPA

PT. PERTAMINA (PERSERO)UP VII BALIKPAPANCAPACITY : 204 MTPA

PT. PERTAMINA (PERSERO)UP IV CILACAPCAPACITY : 277 MTPA

PETROCHINAARARCAPACITY : 14 MTPA

LPG PLANT (TOTAL CAPACITY: 2,40 MMTPA)

PT. PERTAMINA (PERSERO)UP III MUSICAPACITY : 55 MTPA

CONOCO PHILLIPSBELANAKCAPACITY : 420 MTPA

MINISTRY OFMINISTRY OF

E&MRE&MR

© DJMIGAS 070410 1414

BUSINESS OPPORTUNITIESBUSINESS OPPORTUNITIES

MINISTRY OFMINISTRY OF

E&MRE&MR

© DJMIGAS 070410

OIL AND GAS INVESTMENTOIL AND GAS INVESTMENT(TARGET Vs REALIZATION)(TARGET Vs REALIZATION)

2006 2007 2008 2009 2010TARGET 9.746,23 10.798,01 14.786,50 13.778,21  13.784,82 

UPSTREAM 8.983,70 10.228,68 13.572,87 13.166,21  12.374,82 DOWNSTREAM 762,53 569,33 1.285,55 612,00  1.410,00

REALIZATION 9.662,56 11.179,66 13.524,97  12.184,82  0UPSTREAM 8.523,90 10.737 12.096,00 10.874,39 0DOWNSTREAM 1.138,66 442,66 1.428,97 1310,43 0

MINISTRY OFMINISTRY OF

E&MRE&MR

© DJMIGAS 07041016

TENTATIVE INDONESIA PETROLEUM BIDDING ROUND YEAR 2010

MINISTRY OFMINISTRY OF

E&MRE&MR

© DJMIGAS 070410

MINISTRY OFMINISTRY OF

E&MRE&MR

© DJMIGAS 070410

OIL RESERVEOIL RESERVE(AS OF JANUARY 1st 2009)

902.42

570.66

346.42

745.11

89.64

987.01

PAPUA

OIL RESERVES (MM STB)

NATUNA

MOLUCCAS

PROVEN = 4,303.10 MM STBPOTENTIAL = 3,695.39 MM STBTOTAL = 7,998.49 MM STB

= 7.9985 B STB

43.11

51.95

121.01NAD

NORTH SUMATERA

CENTRAL SUMATERA

SOUTH SUMATERA

EAST JAVA

WEST JAVA

CELEBES

BORNEO4,028.67

112.49

MM STB : Million Stock-Tank-BarrelB STB : Billion Stock-Tank-Barrel

MINISTRY OFMINISTRY OF

E&MRE&MR

© DJMIGAS 070410 1919

Upstream– Exploration and exploitation in oil and gas fields;– EOR and marginal field developments;– LNG receiving terminal;– LNG processing plants;– Development of unconventional oil & gas.

Downstream– Refineries;– LNG processing plants;– LPG plants & storage;– Oil and gas pipelines;– Oil storage and transit terminals;– Infrastructure for gas businesses;– Biofuel development.

BUSINESS OPPORTUNITIESBUSINESS OPPORTUNITIES

MINISTRY OFMINISTRY OF

E&MRE&MR

© DJMIGAS 070410 2020

www.migas.esdm.go.idwww.migas.esdm.go.id