policy goals for unconventional gas and investment needs · pdf filejurrasic plays 1998-2008...
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Jakarta, 6 February, 2012
MINISTRY OF ENERGY AND MINERAL RESOURCESDIRECTORATE GENERAL OF OIL & GAS
by:Evita H Legowo
DIRECTOR GENERAL OF OIL AND GAS
Policy Goals for Unconventional Gasand Investment Needs
Presented at:2nd United States-Indonesia Energy Investment Roundtable: “Unconventional Gas”
Under the auspices of theUnited States-Indonesia Energy Policy Dialogue
© DJMIGAS 030212
MINISTRY OFMINISTRY OF
E&MRE&MR
AGENDASHIFTING PARADIGM WITHIN OIL AND GAS INDUSTRY
POTENTIAL OF GAS DEVELOPMENT IN INDONESIA
DEVELOPMENT OF GAS INFRASTRUCTURE IN INDONESIA
UNCONVENTIONAL OIL AND GAS IN INDONESIA
© DJMIGAS 030212
MINISTRY OFMINISTRY OF
E&MRE&MR
SHIFTING PARADIGM WITHIN OIL AND GAS INDUSTRY
SHIFTING PARADIGM WITHIN OIL AND GAS INDUSTRY
3
© DJMIGAS 030212
MINISTRY OFMINISTRY OF
E&MRE&MR FROM OIL TFROM OIL TOO GAS GAS
4
bare
l oil
equi
vale
nt
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MINISTRY OFMINISTRY OF
E&MRE&MR FROM WEST TO EAST
5
More reserves found and exploration activities occureed in the eastern part of Indonesia mainly deepwater projectdeepwater project
Deep Water Area
Western part Eastern part
Mostly TertieryDiscoveries in Jurrasic Plays 1998-2008
2 23
0 0
9 9
5
0
2
4
6
8
10
2003 2004 2005 2006 2007 2008 2009 2010
EASTERN INDONESIA CONTRACT SIGNED
EASTERN INDONESIA CONTRACT SIGNED
Most of bidding acreage located in eastern side of Indonesia
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MINISTRY OFMINISTRY OF
E&MRE&MR
POTENTIAL OF GAS DEVELOPMENT IN INDONESIA
POTENTIAL OF GAS DEVELOPMENT IN INDONESIA
6
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MINISTRY OFMINISTRY OF
E&MRE&MR
GAS RESOURCES = 334.5 TSCF
4.23
8.56
3.70
51.46
24.32
NATUNA5.74
NORTH SUMATRA
15.22
17.90
CENTRAL SUMATRA
ACEH (NAD)
SOUTH SUMATRA
WEST JAVA
6.40
EAST JAVA
EAST BORNEO
CELEBES
MOLUCCAS
PAPUA
(Advance Resources Interational, Inc., 2003 processed)
PROVEN = 104.71 TSCFPOTENTIAL = 48.18 TSCFTOTAL = 152.89 TSCF
CBM RESOURCES = 453.30 TCFGAS RESERVES
NATURAL GAS RESOURCES – RESERVES& CBM RESOURCES, SHALE GAS POTENTIAL
(As of January 1st 2011)
(As of December 31st 2010)Total CBM Basin = 11(Advance Resources Interational, Inc., 2003)
Signed Contracts up to Desember 2011 : 42 CBM PSCs
SHALE GAS POTENTIAL
1.28
18.33
Currently, the Government has beendoing initial study shale gas potential in Indonesia
Some rock samples have been taken from several regions for laboratorium analysis 7
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MINISTRY OFMINISTRY OF
E&MRE&MR FUTURE GAS DEVELOPMENT
CEPU
MA
SE
LA
IDD
D‐ALPH
A
UTM-111 ; WGS- 84
JAMBARAN
S UKOW AT I
CENDANAKEDUNG TUBAN
BANYU URIP
KEDUNG KE RIS
AL AS T UA
ALAS TUA E.
GIANTI
P ILANG
NAMPAK
RANDU BL ATUNG
KALIS ARI
3-D Seismic Area
UTM-111 ; WGS- 84
JAMBARAN
S UKOW AT IS UKOW AT I
CENDANAKEDUNG TUBANKEDUNG TUBAN
BANYU URIPBANYU URIP
KEDUNG KE RISKEDUNG KE RIS
AL AS T UAAL AS T UA
ALAS TUA E.ALAS TUA E.
GIANTI
P ILANGP ILANG
NAMPAKNAMPAK
RANDU BL ATUNG
KALIS ARIKALIS ARI
3-D Seismic Area
Gresik
Cepu Block Pasurua
n
146 km
60 km 110
km140 km
Tang
guh
Trai
n 3M
uara Bakau
AMPANA
PELENG
Tiaka-3Tiaka-1
Tiaka-4
Tiaka-2
SULAWESI
LUWUK
MINAHAKI
U
SUKAMAJU
MALEO RAJA
RANGKONG A-1
MALEO BESAR-1
MALEO-1
MATINDOK
Dry exploration well
Onshore field for LNG
DONGGI
Onshore field for IPPMA
TIN
DO
KJ
8
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MINISTRY OFMINISTRY OF
E&MRE&MR
‐
2,000
4,000
6,000
8,000
10,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
MMSCFD
Supply: Potential (FSRU) Supply: Potential (CBM)
Supply: (Existing, Project, & Potential) Demand
High conventional oil & gas demandRising oil prices and other energy commodity pricesConsideration to develop unconventional oil & gasSurplus in 2016 (FSRU on stream, new gas field development)Shortage in 2022 (alternative supply from unconventional gas)
Shortage, altenative supply from
unconventional gas
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INDONESIA GAS BALANCE (2011-2025)
FSRU onstream, new gas field development
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MINISTRY OFMINISTRY OF
E&MRE&MR
DEVELOPMENT OF GAS INFRASTRUCTURE IN INDONESIA
DEVELOPMENT OF GAS INFRASTRUCTURE IN INDONESIA
10
© DJMIGAS 030212
MINISTRY OFMINISTRY OF
E&MRE&MR INCREASED OF DOMESTIC GAS ALLOCATIONBASED ON CONTRACTS/ GSA
EXPORT6,11 TCF
24%
DOMESTIC19,52 TCF
76%
11
Comparison of Accumulation Volume ContractDomestic vs. Exports During 2001 – Nov 2011
‐
5
10
15
20
25
30
2003 2004 2005 2006 2007 2008 2009 2010 2011
TCF
domestik ekspor
Comparison of Accumulation Volume Contract Domestic vs. Exports
status Nov 2011
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MINISTRY OFMINISTRY OF
E&MRE&MR
National Gas Pipeline (transmision & distribution)
Gas for Transportation:Buses in the City (short distance) CNGTaxi / Private Car LGVInter-Provincial Buses (long distance) LNG
City Gas (Gas for Household)Households that close to the gas sources or gas transmissions pipelineGoI began a preliminary study of city gas in 2008 and builds Gas DistributionNetworks for Household:
2009: Surabaya & Palembang2010: Tarakan, Depok, Bekasi, & Sidoarjo2011: Bontang, Sengkang, flats in Jabodetabek, Sidoarjo II, and Bekasi II2012: Prabumulih, Kab. Bogor, Jambi, Sidoarjo III, and Cirebon
Floating Storage Regassification Unit (FRSU)LNG Receiving Terminal will be built in 3 location: West Java, North Sumatra, and Central/Eastern Java
Small scale LNG receiving terminalDevelopment mini LNG Plant 1st stage: Samarinda, Balikpapan, Bali & Southeast Sulawesi
DEVELOPMENT OF GAS INFRASTRUCTURE IN INDONESIA
12
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MINISTRY OFMINISTRY OF
E&MRE&MR
UNCONVENTIONAL OIL AND GASIN INDONESIA
UNCONVENTIONAL OIL AND GASIN INDONESIA
13
© DJMIGAS 030212
MINISTRY OFMINISTRY OF
E&MRE&MR
Developing unconventional oil & gas in Indonesia
Coal Bed Methane (C B M)Pilot Project was done by Lemigas at Rambutan Field in 2004Since 2008 until 2011, have signed 42 CBM PSC’s all around Sumatera and KalimantanCBM for electricity in surrounding CBM areas started in 2011
Shale GasIdentification of potential shale gas in indonesia: Sumatra: 3 basins (baong shale, telisa shale, & gumai shale); Java: 2 basins; Borneo: 2 basins; Papua (klasafet formation)
Oil Sand, Tight Gas, Biogenic GasR&D studies is ongoing
Coal Development for Oil & Gas substitute
COAL
Liquid
Gas
Ethanol
Dimethyl Ether (D M E)
Diesel Oil
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UNCONVENTIONAL OIL & GAS
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MINISTRY OFMINISTRY OF
E&MRE&MR
Demand for conventional oil and gas is progressively increase;
Abundance of unconventional oil & gas resources associated with conventional oil and gas;
To meet the high demand of gas both domestically;
Massive potential resources of CBM (453 TCF) and high-ranked indications of shale gas (Baong Shale, Telisa Shale, Gumai Shale and Klasafet Formation)
WHY DEVELOP UNCONVENTIONAL OIL & GASIN INDONESIA
15
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MINISTRY OFMINISTRY OF
E&MRE&MR INDONESIA COALBED METHANE CONTRACT AREAstatus: January 2012
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MINISTRY OFMINISTRY OF
E&MRE&MR
CONTRACTOR ECONOMICAL IMPROVINGWITH MORE ATTRACTIVE TERMS & CONDITIONS
CONTRACTOR ECONOMICAL IMPROVINGWITH MORE ATTRACTIVE TERMS & CONDITIONS
Remarks
Depend on field condition
90% (ceiling cost)
Not to be sold
30 Years
Remarks
Depend on field condition
100% (no cost ceiling)
Can be sold, with the distribution of results according to the split in the Contract but the cost can not be recovered
30 Years
BEFORE REVISED(2008 – 2009)
AFTER REVISED(2009 – Now)
Remarks
Depend on field condition
100% (no cost ceiling)
Can be sold, with the distribution of results according to the split in the Contract but the cost can not be recovered
Given legal certainty for investment returns that are tailored to the ability of field (may > 30 years)
EXPECTED CONDITION
Terms & Conditions
Split
Cost Recovery
Handling Production before Commerciality
Contract Duration
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