MINISTRY OF ENERGY AND MINERAL RESOURCES

DIRECTORATE GENERAL OF OIL AND GAS

DEEP-WATER EXPLORATION
& DEVELOPMENT IN INDONESIA

by:
Yunan Muzaffar
HEAD OF EXPLORATION DIVISION

Subsea Conference
October 3rd, 2012
 AGENDA

ƒ SHIFTING PARADIGM WITHIN OIL &

GAS SECTOR

ƒ DEEP WATER BLOCKS IN INDONESIA

ƒ INDONESIA DEEP WATER

EXPLORATION & DEVELOPMENT

ƒ CHALLENGES AND OPPORTUNITIES

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 SHIFTING PARADIGM WITHIN OIL &
GAS SECTOR

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 FROM REVENUE TO
ECONOMIC GROWTH MACHINE (FEEDSTOCK-
(FEEDSTOCK-FUEL)
FUEL)

ROLE OF OIL AND GAS INDUSTRIES

OIL AND GAS
INDUSTRY INDUSTRIAL
FEEDSTOCK

DOMESTIC
High Risk SUSTAINABLE
FUEL
NATIONAL
SOURCE OF
High Cost STATE DEVELOPMENT
REVENUE

High Technology MULTYPLIER

EFFECTS

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 FROM WEST TO EAST
More reserves found
M f d and
d exploration
l ti activities
ti iti occureed
d
in the eastern part of Indonesia mainly deepwater project

Discoveries in
Mostly Tertiery Jurrasic Plays
1998-2008

Western part
Eastern part
EASTERN INDONESIA CONTRACT SIGNED
10 9 9
8
Deep Water Area
6 5
4 3
2 2
2
0 0
0
2003 2004 2005 2006 2007 2008 2009 2010 Most of bidding acreage located
EASTERN INDONESIA CONTRACT SIGNED in eastern side of Indonesia
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 ent
quivale
barel oil eq FROM OIL TO
TO GAS

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 INCREASED OF DOMESTIC GAS ALLOCATION
BASED ON CONTRACTS/ GSA

Comparison of Accumulation Volume

Contract Domestic vs. Exports
status Nov 2011

EXPORT
6,11 TCF
24%
Comparison of Accumulation Volume Contract
Domestic vs. Exports During 2001 – Nov 2011

TCF
30 

25 

DOMESTIC 20
20 

19,52 TCF 15 

76% 10 

5 

‐
2003 2004 2005 2006 2007 2008 2009 2010 2011

domestik ekspor

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 DEEP WATER BLOCKS
IN INDONESIA

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 DEEP WATER SPECULATIVE SURVEY OF INDONESIA

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

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 PRESENT DEEP WATER BLOCKS OF INDONESIA

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 INDONESIA DEEEPWATER
EXPLORATION & DEVELOPMENT

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 DRILLING ACTIVITIES IN DEEP WATER BLOCKS OF
INDONESIA

No. Block Drilling Rig

• Almost Seismic Commitment
1 Lhokseumawe Plan to Drill 1 well on 2012 Ocean Monarch Fulfilled at whole deep Water
Area
2 Surumana Block Drilled 1 well (Rangkong-1) West Aquarius

3 South East Ganal I Plan to Drill 1 well (2013) Ocean Monarch • Worldwide Deep Water Drilling
Rig
g Availability
y is Limited
4 Pasangkayu Drilled 4 Well (Bravo-1, Romeo-1, GSF Explorer
Romeo-B1, Romeo-C1)
5 Kuma Drilled 1 well (Kaluku-1) GSF Explorer
• Regional Autonomy should
support & be partner in
6 Karama Drilled 2 Well ( Gatotkaca
Gatotkaca-1
1 & Anoman
Anoman-1)
1) GSF Explorer maintaining the investment for
regional area of Indonesia
7 Mandar Drilled 3 well (Sultan-1,Kris-1 & Kris-1 St) West Aquarius

8 West Sageri Plan to Drill 1 well (2013) Ocean Monarch • More Petroleum system Studies
in deep water are needed to
9 Sageri Drilled 1 well (Lempuk-1) GSF Explorer
determine potential estimates
10 Kofiau Plan to Drill 1 well (2013) Ocean Monarch
• Successful exploration will
11 West Papua IV Plan to Drill 1 well (2013) Ocean Monarch
require additional rig time to
appraise discoveries

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 MAKASSAR STRAIT DEEP WATER DRILLING PROGRAM

D
Deepwater
t Rigs
Ri
(GSF Esplorer)

Business Opportunity
The downside to all
¾ The 7 companies have a combined 12 of this interest
deepwater well commitments in the
Makassar Straits

¾ Total drilling
g investment of over US$700MM
$
Barrier:
Rig availability, contract
length and day rates

Solution:
7 companies working
together with one rig
together,

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 DISCOVERIES IN DEEP WATER AREAS
OF INDONESIA
JAMBU AYE UTARA FIELD,
FIELD KRUENG MANE BLOCK

POD I : 2012
Water Depth : 600 – 650 M
Gas Rate : 100 MMSCFD,
plateau 3 years
On Stream : 2014

GENDALO & GEHEM FIELDS, UNITIZATION OF GANAL & RAPAK BLOCKS

POD I : 2008
Water Depth : 1000 - 2000 M
Gas Rate : 120 - 600 MMSCFD
On Stream : 2013

UPCOMING DEEEP WATER PROJECT (ABADI FIELD, MASELA BLOCK)

POD I : 2010
Water Depth : 300 – 1000 M
Gas Rate : first stage
g 2.5 MTPA
equal to 130 MMSCFD
On Stream : 2018
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 EXISTING DEEP WATER DEVELOPMENT IN INDONESIA

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 ONGOING INDONESIA DEEP WATER DEVELOPMENT

Kapasitas
Capacity 150 150 mmscfd
mmscfd
Current
Current prod
prod’’nn 60-70
60-70 mmscfd
mmscfd
Pada 2013 pp
2013app.pp2020 mmscfd
app. mmscfd
G 16 ”
Gas
Gas 20 ” 79 Km
Cond ’t 8”
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again.

120 mmscfd

85 Km
60 Km

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again.

110 Km 420 mmscfd

30,000 bcpd
RANGGAS
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again.

(~ 5,200 ’ WD)
700
00 mmscfd
sc d Bangka
g Field (tie ( in Existing g West Seno FPU))
25,000 bcpd Gehem Hub To delivery 150 mmscfd and 2,880 bcpd.
To delivery 420 mmscfd and 27,000 bcpd. Facility built consist of Subsea wellhead and
Facility built consist of Subsea wellhead and Umbilical Risser and Flow Lines (SURF) tie in to
Umbilical Risser and Flow Lines (SURF) and West Seno FPU
Floating Production Unit (FPU), Export P/L

Gendalo, Gadang, Maha Field (Gendalo Hub)

To delivery 700 mmscfd and 20,000 bcpd.
Facility built consist of Subsea wellhead and Umbilical Risser and Flow
Lines (SURF) and Floating Production Unit (FPU), Export P/L

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 INDONESIA DEEPWATER DEVELOPMENT
SUMMARY OVERVIEW

Ganal PSC : Contract Signed February 24 th, 1998

Rapak PSC : Contract Signed Desember 4th 1997

‰ At 6,000
6 000 water depth in the Gehem Field,
Field IDD has the deepest
ƒ Ship-shaped floating structure
ƒ Subsea production trees
ƒ Suction pile installation
ƒ Flowline installation
ƒ Export pipeline and SCR
‰ Largest offshore natural gas processing facility (700 mmcf/d)
‰ Largest single subsea umbilical order
‰ Longest mooring lines - 2.4
2 4 mi (3.9
(3 9 km)
‰ Heaviest SCR load on a deepwater floating facility at 650 tons (590 metric tons)

‰ Front End Engineering and Design (FEED)

– Contract for Floating Production Unit to PT Technip Indonesia
– Contract for subsea and flowline system to PT Worley Parsons Indonesia
– Contract for export pipelines to PT Worley Parsons Indonesia
– Contract for onshore receiving facility to PT. Singgar Mulia

‰ Engineering, Procurement, Construction, and Istalation (EPCI)

After FEED, project team is still doing some scope and cost optimizations to address EPCI cost
escalation – potential for unfavorable market conditions

‰ Final Investment Decision (FID) : Juni 2013

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 CHALLENGES AND
OPPORTUNITIES

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 CHALLENGES IN
OFFSHORE & DEEPWATER ACTIVITIES

‰ Technical aspects: ((water depth,

p slope
p rugosity,
g y high
g ppressure,
peculiar geological conditions)

‰ Commercial aspects: more time from discovery to first commercial

production (8-10 years)

‰ Worldwide Deep Water Drilling Rig Availability is Limited (service

availability)

‰ Regional Autonomy should support & be partner in maintaining the

investment for regional area of Indonesia

‰ More Petroleum
M P l system Studies
S di i deep
in d water are needed
d d to
determine potential estimates

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 OPPORTUNITIES IN
OFFSHORE & DEEPWATER ACTIVITIES

‰ BIG UPSIDE POTENTIALS

‰ STRONG GOVERNMENT SUPPORT

ƒ better PSC split for high risk block 65/35 (oil) and 60/40 (gas)
ƒ no exploration well in the firm commitment
ƒ exemption of import duty

‰ LESS COMPETITION

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 www.migas.esdm.go.id
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