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1

INDONESIA’SINDONESIA’SNATURAL GAS RESERVES,NATURAL GAS RESERVES,

PRODUCTION ANDPRODUCTION ANDUTILIZATIONUTILIZATION

Prepared for the 3Prepared for the 3rdrd Workshop China Workshop China –– Western Western ––Depression Sichuan Basin Case StudyDepression Sichuan Basin Case Study

20 20 –– 24 June 2005, Beijing 24 June 2005, Beijing -- ChinaChina 2

CONTENTSCONTENTSEXPLORATION ACTIVITESEXPLORATION ACTIVITESGAS RESERVES AND PRODUCTIONGAS RESERVES AND PRODUCTIONGOVERNMENT POLICYGOVERNMENT POLICYGAS UTILIZATIONGAS UTILIZATION

3

EXPLORATION EXPLORATION ACTIVITIESACTIVITIES

4

SOUTH HALM

TIMOR

NORTH EAST JAVA

SOUTH JAVA

BARITO

SOUTH SERASERAM

MISOOL

LOMBOK BALI

TUKANG BESI

PALU

NG A

RU

PEMBUANG

WAROPENGORONTALO

MINAHASA

SIBOLGA

NORTH SUMATRA

CENTRAL SUMATRA

TARAKAN

EAST NATUNA

WEST NATUNA

NORTH EASTJAVA SEA

PATISUNDA

BONE

SOUTH SUMATRA

KUTAI

BENGKULU

BIAK

NORTH HALM

EAST HALMANORTH OBIMELAWI

LARIANGSALAWATISOUTH OBI

BANGGAI SULA

BINTUNI WAIPOGAASEM-ASEM

JAYAPURASOUTH SULASALA BANGK

BILITON

SOUTH MAKABURU

WEBER

AKIMEUGAHWEST WEBERBUTON

NORTH WESTSPERMONDE

SAHULTANIMBAR

FLORES

SAWU

KETUNGAU

5º S

BADAN PELAKSANA KEGIATANUSAHA HULU MINYAK DAN GAS BUMI

95º E 105º E 115º E 125º E 135º E

5º N

LEGEND :

PRODUCING BASIN ( 15 BASINS )

BASIN WITH DISCOVERIES, NON PRODUCING ( 9 BASINS )

DRILLED BASIN, NO DISCOVERY ( 14 BASINS )

UNDRILLED BASIN ( 22 BASINS )

GIS/Gamma/BPMIGAS/231003

INDONESIA TERTIARY SEDIMENTARY BASININDONESIA TERTIARY SEDIMENTARY BASIN

∗SCALE : 1 : 23,500,000

N

2

5

BPMIGASSUMMARY OF E&P 2005

130

ON OFF ON&OFF ON OFF ON&OFF ON OFF ON&OFF ON OFF ON&OFF

18 8 6 3 0 2 25 43 16 5 2 2

PRODUCING NON PRODUCING

PRODUCING

PSC JOB / JOA

9 93PSC JOB/JOA TOTAL (1)

32 5 37 84

2TOTAL

130

JOB/JOA TOTAL (2)PSC

TOTAL PETROLEUM WORKING AREA IN INDONESIA *

NON PRODUCING

PSC JOB / JOA

TOTAL (1 + 2)

PSC

116JOB

12JOA

(*) : Excluded TAC & EOR Contract6

Scale 1 : 21,360,000

BADAN PELAKSANA KEGIATANUSAHA HULU MINYAK DAN GAS BUMI

NORTH SUMATRA

CENTRAL SUMATRA

NATUNA

INDONESIA OIL & GAS RESOURCES IN PLACE DISTRIBUTIONINDONESIA OIL & GAS RESOURCES IN PLACE DISTRIBUTIONBASIN POTENTIALBASIN POTENTIAL

110º E 120º E 130º E 140º E

5º S

0

5º E

STATUS S/D JANUARI 2005STATUS S/D JANUARI 2005

KALIMANTAN

SULAWESI

PAPUA AND MALUKUSOUTH SUMATRA

WEST AND CENTRAL JAVA EAST JAVA

0,8

6,1

9,2

13,3

5,1

12,1

24,5

4,5

28,7

100º E

TOTAL OIL & CONDENSATE

TOTAL GAS

: 116 BBO

: 332 TCFG

41

11,2

52,4

16,8

3

82

68,3

12,837,8

127

UU

7

0

10,000

20,000

30,000

2D (Planning) Km 8,655 13,494 7,054 13,152

2D (Actual) Km 5,190 13,514 15,854 13,497

3D (Planning) Km² 9,298 1,840 18,373 2,825

3D (Actual) Km² 8,757 2,131 2,749 2,606

2001 2002 2003 2004

INDONESIA SEISMIC SURVEY ACTIVITYINDONESIA’sINDONESIA’s SEISMIC SURVEY ACTIVITYSEISMIC SURVEY ACTIVITY

8

0

20

40

60

80

Well

s

Actual Discovery Success Ratio (%)

Actual 60 47 56 51 47 39 45Discovery 17 17 25 16 21 16 22Success Ratio (%) 28 36 44 31 44 41 48

1998 1999 2000 2001 2002 2003 2004

INDONESIA’sINDONESIA’s WILDCAT DRILLING ACTIVITYWILDCAT DRILLING ACTIVITY

3

9

GAS RESERVES GAS RESERVES AND AND

PRODUCTIONPRODUCTION

10

Oil & Gas Reserves(Cut off date @ 1-Jan-2004)

OIL RESERVES *)OIL RESERVES *)(MMSCTB)(MMSCTB)

GAS RESERVESGAS RESERVES(BSCF)(BSCF)

ProvenProven PotentialPotential TotalTotal ProvenProven PotentialPotential TotalTotal

11 PSCPSC 3,2393,239 3,4123,412 6,6516,651 83,52983,529 82,33082,330 165,859165,859

22 JOBJOB--PSCPSC 118118 9292 210210 3,1883,188 2,4822,482 5,6705,670

33 PERTAMINAPERTAMINA 652652 224224 876876 7,2607,260 1,9911,991 9,2519,251

44 TACTAC 190190 232232 422422 678678 912912 1,5911,591

55 JOBJOB--EOREOR 101101 2828 129129 122122 1111 133133

Total IndonesiaTotal Indonesia 4,3014,301 3,9883,988 8,2898,289 94,77794,777 87,72687,726 182,503182,503

NO.NO. CONTRACTORCONTRACTOR

*) including condensate*) including condensate

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INDONESIAN GAS RESERVES (2P)INDONESIAN GAS RESERVES (2P)STATUS: JANUARY 2004STATUS: JANUARY 2004

3,7563,756

78078011,4411,44

44

5,8555,855

5,5295,529

3,7243,724

51,44751,447

35,81635,816

18,50718,507

AcehAceh

CentralCentralSumateraSumatera

PapuaPapua

GAS RESERVES (BSCF)GAS RESERVES (BSCF)

NatunaNatuna

East JavaEast Java

TOTAL INDONESIA2P : 140,751 BSCF

NorthNorthSumateraSumatera

SouthSouthSumateraSumatera

EastEastKalimantanKalimantan

West West JavaJava

3,8943,894

SulawesiSulawesi

/JIANBANG/DIAFATGAS/PETA/CADANGAN GAS INDONESIA 2004 (2P) PETA/ptr.

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PROVED & POTENTIAL GAS RESERVES (BSCF)

ONSHORE AND OFFSHORE RATIO1 JANUARY, 2005

60,138, 63%

34,988, 37%

Onshore Offshore

PROVED

47,468, 52%

43,001, 48%

Onshore Offshore

POTENTIAL

4

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PROVED GAS RESERVESPROVED GAS RESERVES( 1978 ( 1978 –– 2004 )2004 )

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004

YEARYEAR

RES

ERVE

S O

F G

AS,

BSC

F

OTHERS

EXXON MOBIL

TOTAL IND.

V I C O

EXSPAN+Ex.PTSI

UNOCAL

CNOOC

BP.

CPI+BOB CPP

PERTAMINA

14

GAS PRODUCTIONGAS PRODUCTION( 1978 ( 1978 –– 2003 )2003 )

0

300

600

900

1200

1500

1800

2100

2400

2700

3000

1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

YEAR

GA

S P

RO

DU

CTI

ON

, BS

CF/

YE

AR

GA

S P

RO

DU

CTI

ON

, BS

CF/

YE

AR

OTHERS

EXXON MOBIL

TOTAL IND.

V I C O

EXSPAN+Ex. PTSI

UNOCAL

CNOOC

BP

CPI+BOB CPP

PERTAMINA

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GOVERNMENT GOVERNMENT POLICYPOLICY

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Article 8, Paragraph (1) :Government gives priority to the utilization of natural gas for domestic needs and has a duty to provide strategic reserves of Natural Oil to support the supply of the domesticOil Fuel that shall be further regulated by Government Regulation

Article 8, Paragraph (3) :The conduct of natural gas transportation activities through pipe lines that concern public interest, shall be regulated to the extent that it is open for all users.

INDONESIA GAS BUSINESS and CONTROL INDONESIA GAS BUSINESS and CONTROL BASED ON OIL & GAS LAW No.22/2001BASED ON OIL & GAS LAW No.22/2001

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Article 23, Paragraph (1) :Business licenses required for Oil activities and/or Natural Gas activities as referred to in paragraph (1) shall be distinguished as follows :

- Processing business licenses- Transporting business licenses- Storage business licenses- Trading business licenses

Article 27, Paragraph (1, 2, and 3) :1. The Ministery shall stipulate a master plant for national network for the

transmission and distribution on Natural Gas2. A Business Entity holding a Business License for Natural Gas

Transportation through the pipeline shall only be given a certain Transportation segment.

3. A Business Entity holding a Business License for Natural Gas Trading through the pipeline shall only be given a certain Trading area.

INDONESIA GAS BUSINESS and CONTROL INDONESIA GAS BUSINESS and CONTROL BASED ON OIL & GAS LAW No.22/2001BASED ON OIL & GAS LAW No.22/2001

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Article 28, Paragraph (2) :Price for oil fuels and natural gas shall be left to the mechanism of healthy and fair business competition.

Article 46, Paragraph (1) point d, e, and f :The duty of the Regulatory Body as referred to in paragraph (1) shall cover the regulation and stipulation concerning :d. The tariff of natural gas transportation through the pipe line,e. The price of natural gas for households and small scale

costumers,f. The natural gas transmission and distribution business,

GAS PRICE BASED ON OIL & GAS GAS PRICE BASED ON OIL & GAS LAW No.22/2001LAW No.22/2001

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GAS GAS UTILIZATIONUTILIZATION

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INDONESIAINDONESIA’’ss GAS UTILIZATIONGAS UTILIZATION+ PERTAMINA+ PERTAMINA

Status per 31 December 2004 (MMSCFD)Status per 31 December 2004 (MMSCFD)

Gross prod.

utilization

Flare

Own Use

Ind. Gas Utilization Des 2004/ptr.Ind. Gas Utilization Des 2004/ptr.

Aceh

1394 1329

65 0

Natuna

598 449

119 29

South Sumatera

574 444

98 32

Papua

26 8

10 7

INDONESIA + PERTAMINA

8407 7148

817 442

North Sumatera

5 5

0.2 0.2

Central Sumatera

310 121

130 60

West Java

434 225

165 43

East Java

217 194

6 17

South Sulawesi

24 24

0.2 0.1

PERTAMINA

1049 769

58 222

East Kalimantan

3776 3579

166 31

6

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INDONESIAINDONESIA’’ss GAS UTILIZATIONGAS UTILIZATIONMINUS PERTAMINAMINUS PERTAMINA

Status per 31 December 2004 (MMSCFD)Status per 31 December 2004 (MMSCFD)

Gross prod.

Utilization

Flare

Own Use

Ind. Gas Utilization Des 2004/ptr.Ind. Gas Utilization Des 2004/ptr.

Aceh

1394 1329

65 0

Natuna

598 449

119 29

South Sumatera

574 444

98 32

Papua

26 8

10 7

INDONESIA

7357 6378

759 220

North Sumatera

5 5

0.2 0.2

Central Sumatera

310 121

130 60

West Java

434 225

165 43

East Java

217 194

6 17

South Sulawesi

24 24

0.2 0.1

East Kalimantan

3776 3579

166 31

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GAS P/L5.9%

Own Use9.7%

Own Processing0.9%

Flare5.3%

Others Industry 9.6%

Electrical3.4%

Petrochemicals 1.9%

PGN6.3%

Refinery0.5%

Fertilizers4.1%

LNG52.5%

Realization Total Gas Utilization By Customers 2004 3.07 TSCF

Fertilizers : PIM, AAF, KFP, PUSRIPetrochemicals : KMI, KPI, PKG, KMBOthers Industry : KKA, KPA, KLI, PertaminaGas P/L : WNTS, Duyong, Sing. PowerOwn Use : Bahan Bakar, Inj., Gas LiftOwn Processing : LPG, Condensate

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DOMESTIC GAS UTILIZATION INDONESIA2003 & 2004

4.4 4.1

0.5

5.26.3

1.9 1.9

4.1

6.7

0.5

3.4

9.6

0.0

2 .0

4 .0

6 .0

8 .0

10.0

12.0

Prod. Gross 2 0 0 3 = 8 ,52 5.3 3 M M SCFD Prod. Gross 2 0 0 4 = 8 ,4 0 6 .6 1 M M SCFD

Fertilizers Refinery PGN Petrochemicals Electrical Others Industry Fer t i l i zer s : PIM, AAF, KFP, PUSRI

Petr ochemi cal s : KMI, KPI, PKG, KMB

Other s Industr y : KKA, KPA, KLI, Per tami na

Gas P/ L : WNTS, Duyong, Si ng. Power

Own Use : Bahan Bakar , Inj . , Gas Li f t

Own Pr ocessi ng : LPG, Condensate 24

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

MM

SCF

D

2003 2004 2005 2006 2007 2008TAHUN

PERKIRAAN PRODUKSI & PEMANFAATAN GAS BUMI INDONESIATAHUN 2003 - 2008

PRODUKSI PEMANFAATANPRODUCTION UTILIZATION

NATIONAL GAS PRODUCTION AND UTILIZATION FORECAST

2003 - 2008