INDONESIA S OIL AND GAS INFRASTRUCTURE DEVELOPMENT

Transcription

1 DIRECTORATE GENERAL OF OIL AND GAS MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA INDONESIA S OIL AND GAS INFRASTRUCTURE DEVELOPMENT Presented at JOGMEC Techno Forum 2017 TOKYO, JAPAN, 28 NOVEMBER 2017

2 THE ROLE OF OIL AND GAS IN INDONESIA S ENERGY MIX 2 Referring to Indonesia s General Plan of National Energy (RUEN) Target in the National Energy Policy (KEN) Role of Energy 46% 26% MTOE Driver of economic growth Portion of Gas in Energy Mix 22% 24% Energy Supply > 400 MTOE > MTOE Power Generation > 115 GW > 430 GW Energy Elasticity < 1 < 1 Power/capita/year kwh kwh Electrification Ratio 100% 100% % 23% 22% 30% MTOE 23% 25% TARGET IN % 24% MTOE 20% 31% Renewable Energy Oil Gas Coal TARGET IN 2050

3 Indonesia Oil & Gas Reserves OIL & GAS RESERVES NAD NORTH SUMATERA NATUNA OIL (Thousand MMSTB) GAS (TCF) MID SUMATERA 2, KALIMANTAN PAPUA SOUTH SUMATERA 1, WEST JAVA 1, , EAST JAVA SULAWESI MALUKU OIL RESERVES GAS RESERVES WORKING ACREAGE : 280 PSCs OIL Production as of Mar 26 th 2017 Kementerian ESDM Republik Indonesia Proven : 3.3 Billion STB Potential : 3.9 Billion STB Total : 7.3 Billion STB Production: 816 Thousand BOPD (oil + condensates) GAS Proven : TSCF Potential : 42.8 TSCF Total : 144 TSCF Production: 7.7 MMSCFD Exploration Exploitation : 195 PSCs : 85 PSCs 3

4 UNCONVENTIONAL OIL & GAS 48 PSC CMB 6 PSC Shale Gas Resources Coalbed Methane: TCF Shale Gas: TCF Kementerian ESDM Republik Indonesia 4

5 ENERGY POLICY 5 The availability of energy aimed to meet domestic demand Energy Regulations in Indonesia Aiming to strengthen the national energy resilient and sovereignty, our energy policy are focus in 5 main pillars: Increasing of electrification ratio, Managing Energy sustainably in order to support the continuity of national economic development Accessible Energy to users in all regions Fair distribution on equality & affordability, Sustainability, (Integrated resource plan, priorities local energy resources) Cultivating the price of energy affordably for all segments of end users Conducive investment & economic growth, and Good governance & streamlining bureaucracy and licensing.

6 6 NATIONAL ENERGY POLICY TARGET (Article 9, Government Regulation 79/2014 on National Energy Policy) 01 NEW PARADIGM Establishment of a new paradigm of energy sources as capital of the national development 02 ENERGY ELASTISITY Energy elasticity achievement shall be less than 1 (one) in 2025 that comply with the economic growth 04 ELECTRIFICATION RASIO Achievement of Electrification Ratio of 85% (eighty five percent) in 2015 and close on 100% (one hundred percent) in HOUSEHOLD GAS UTILIZATION RASIO Achievement of the household gas utilization ratio of 85% (eighty five percent) in ENERGY INTENSITY 06 ENERGY MIX Reduction in final energy intensity of 1% (one percent) per year up to 2025 Achievement of optimal primary energy mix

7 OIL & GAS POLICY REFORMS 7 What has been done? 1 Improvement of Cost Recovery System & Taxation (GR 27/2017 as a revision of GR 79/2010) 2 Improvement of PSC System by Introducing the new Gross Split Scheme (Ministerial Regulation 52/2017) 3 Improvement of recovery mechanism for sunk cost of the latest investment (MR 26/2017) 4 Participating Interest 10% (MR 37/2016) What s next? Asset management for contract termination during exploration phase (revision of GR 35/2004) Performance based commitment (reform of firm commitment) Concept of stabilization clause to accommodate assumed and discharge principle Profit tax regulation in PSC Gross Split Regulation for eligible cost for tax calculation in PSC Gross Split

8 GAS & LNG POLICY REFORMS 8 What has been done? 1 Improvement of gas allocation, pricing, & utilization policy (Ministerial Regulation 06/2016) 2 Gas prices for industries: petrochemical, fertilizer, steel (Ministerial Regulation 40/2016) 3 Acceleration of utilization of gas for transportation (Ministerial Regulation 25/2017) 4 Utilization and pricing of flare gas in upstream oil and gas (Ministerial Regulation No. 32/2017) 5 Improvement of natural gas for power generation (Ministerial Regulation 45/2017) What s next? 1 Downstream gas pricing mechanism 2 Pipeline gas policy reform (revision of Ministerial Regulation 19/2009) 3 LNG import policy 4 Gas governance

9 Net Gross Cost Recovery PSC Oil Production (100%) Equity to be Split (54%) CONTRACTOR S COST EFFICIENCY Cost Recovery 1 (46%) Gross Split PSC Oil Production (100%) Split excluded tax Government (40%) Contractor (14%) Government (57%) Contractor (including cost) (43%) Government (46%) 1 2 years average 2 Tax 40% (40% x 23% = 9%) Kementerian ESDM Republik Indonesia Tax (6%) Contractor (8%) Total Contractor (54%) GROSS SPLIT PSC BENEFIT : Procurement system will be more simple and efficient Contractor can manage their cost independently More incentive for more risky block Flexible and sensitive to oil price and cumulative production 9

10 ON GOING & UPCOMING UPSTREAM OIL & GAS PROJECTS Kementerian ESDM Republik Indonesia 10 ANDE ANDE LUMUT EAST NATUNA Production (Q1 2021): bopd Gas Reserves: 46 TCF CO2 Content: 72% BLOCK A ACEH Gas Reserves: 563 bscf Investment: US$ 1.3 Billion Production: Q IDD BANGKA Gas Reserves bscf Investment: US $ 8 Billion Production: 110 MMSCFD (onstream) JANGKRIK COMPLEX PROJECT Gas Reserves: 2.27 TCF Investment: US$ 4.1 Billion Production (Q3 2017): 450 MMSCFD TANGGUH TRAIN 3 Gas reserves 5.7 TCF Investment: US $ 8 Billion Production (Q2 2020): 700 MMSCFD JAMBARAN TIUNG BIRU Gas reserves: 97 bscf CO 2 Content: 34% Investment US $ 2.2 Billion Production (Q4 2019): 330 MMSCFD MADURA Production (Q1 2017): 110 MMSCFD Investment: US$642Million WASAMBO Production (Q1 2017): 70 MMSCFD Investment: US $ 55.2 million MASELA Gas Reserves: TCF Investment: US $ Billion

11 National Fuel Oil Supply Demand OIL REFINERY DEVELOPMENT Oil Refinery Development Plan in the Next 10 Years Regulations Kementerian ESDM Republik Indonesia Presidential Regulation 146/2015: Refinery Development Ministerial Regulation 25/2016: Privately Funded Oil Refineries Target refinery capacity in 2025: 2 million BPD No Refinery Project Investment (billion US$) 1 GRR Tuban GRR Bontang RDMP Balikpapan RDMP Balongan RDMP Cilacap RDMP Dumai 4.2 RDMP RDMP Balikpapan RDMP Balongan Stage 1 Balikpapan Stage 2 RDMP (existing refinery upgrade) RDMP Cilacap RDMP Dumai GRR Tuban GRR Bontang GRR (new refinery) 11

12 OIL REFINERY DEVELOPMENT PADANG LAWAS PT Indo Kilang Prima Capacity: 6 MBCD Planned Op: 2018 PALEMBANG PT PGRC Capacity: 300 MBCD Planned Op: 2020 PALEMBANG PT DEX Capacity: 10 MBCD Planned Op: 2019 BALONGAN Capacity: 280 MBCD (Existing: 125 MBCD) Complexity Index: 9 Planned Op: 2021 Kementerian ESDM Republik Indonesia DUMAI Capacity: 300 MBCD (Existing: 140 MBCD) Complexity Index: 8 Planned Op: BALIKPAPAN Capacity: 360 MBCD (Existing: 260 MBCD) Complexity Index: 9 Planned Op: CILACAP Capacity: 370 MBCD (Existing: 348 MBCD) Complexity Index: 9 Planned Operation: TUBAN Capacity: 300 MBCD Funding Scheme: Gov t Assignment Investor: Pertamina-Rosneft Planned Operation: 2024 BONTANG Capacity: 300 MBCD Funding Scheme: Gov t Assignment Investor: Tender Awardee Planned Op: 2024 Grassroot Refinery Refinery Upgrading Private Refinery SITUBUNDO PT Kilanindo Golden Star Capacity: 300 MBCD Planned Op:

13 MINI OIL REFINERY DEVELOPMENT MARGINAL OIL FIELDS FOR MINI OIL REFINERY CLUSTERING MoEMR Regulation 22/2016 on Small Scale Oil Refineries PROD (BOPD) CLUSTER I II III IV V VI VII VIII ,191 2,731 1,252 1,653 1,152 3,239 7,002 4, ,253 4,419 4,079 5,728 2, , Cluster I Sumatera Utara 2. Cluster II Selat Panjang Malaka 3. Cluster III Riau 4. Cluster IV Jambi Kementerian ESDM Republik Indonesia 5. Cluster V Sumatera Selatan 6. Cluster VI Kalimantan Selatan 7. Cluster VII Kalimantan Utara 8. Cluster VIII Maluku 13

14 LPG STORAGE FACILITIES IN EASTERN INDONESIA Total Capacity: 5,000 MT Investment Needed: 64.7 million USD Capacity: 2 x 500 MT & jetty Investment: US$ 15.2 million BIMA TOLI - TOLI PARIGI DONGGALA POSO MOUTONG PARE - PARE KOLAKA PALOPO MAKASSAR AMPANA KOLONDALE KENDARI TAHUNA GORONTALO LUWUK BANGGAI BAU -BAU RAHA BITUNG SANANA NAMLEA TERNATE LABUHA WAYAME WAYAME TOBELO HALMAHERA MASOHI RU VII. KASIM BULA Capacity: 2 x 1,000 MT & jetty Investment: US$ 18.4 million SORONG MANOKWARI FAK - FAK TUAL KAIMANA DOBO BIAK NABIRE SERUI Capacity: 2 x 1,000 MT & jetty Investment: US$ 15.2 million TIMIKA JAYAPURA JAYAPURA MANGGIS BADAS MAUMERE KALABAHI REO L. TUKA SAUMLAKI DILI MERAUKE AMPENAN ENDE WAINGAPU ATAPUPU KUPANG TENAU Capacity: 2 x 1,000 MT & jetty Investment: US$ 15.9 million LPG Storage Tank Kementerian ESDM Republik Indonesia 14

15 THE IMPORTANCE OF ENERGY BUFFER RESERVES Kementerian ESDM Republik Indonesia 15 1 crude import dependency (about 39%) and product (fuel 42% and LPG 63%) is increasing 2 IMPORT route prone is influences by geopolitic of exporting countries 3 Enhancing domestic oil / fuel reserves security (there is only operational reserves in the form of fuel for days owned by Pertamina) 4 Ensuring energy security as the last resort in coping with energy supply gas in the case of energy crisis 5 Increasing bargaining position regionally and globally (such as in trading oil/ product with other countries) 6 Supporting national security enhancement to preserve energy supply stability

16 BBTUD Kementerian ESDM Republik Indonesia UTILIZATION OF GAS 16 Average growth of domestic gas demand ( ): 9% Portion of domestic gas demand in 2017 : 58% Status: as of June Ekspor Export Domestik Domestic Utilization of Gas in Indonesia (2017) Domestic LNG 5,53% LNG Export 28,49% CNG for Vehicles 0,08% Pipeline Gas Export 12,62% Domestic LPG 2,11% Power Generation 13,67% Fertilizer 11,15% Industry 23,53% Oil City Gas Lifting 0,05% 2,77%

17 GAS SUPPLY DEMAND PER REGION ( ) 17 There is an oversupply of gas in East Indonesia & Kalimantan The largest gas demand exists in West Indonesia (Java & Sumatera) REGION I , ,8 Supply Demand REGION II , REGION V 495, REGION VI , REGION III ,2 133, REGION IV 545, Region I : Aceh & North Sumatera Region II : Sumatera (South & Central), Riau Islands, West Java Region III : Central Java Region IV : East Java & Bali Region V : East Kalimantan Region VI : Sulawesi, Maluku, Papua

18 EXISTING GAS INFRASTRUCTURE Description Non Pipeline Gas Infrastructure Facilities Existing FSRU Ongoing FSRU Planned FSRU Existing LNG Plant Planned LNG Plant Existing LPG Plant Planned LPG Plant Existing CNG Filling Station Planned CNG Filling Station Existing Receiving Terminal Regasification Terminal Existing CNG Station Gas Transmission & Distribution Network Existing Open Access Pipeline Ongoing Open Access Pipeline Planned Open Access Pipeline Existing Own Use Pipeline Planned Own Use Pipeline Existing Dedicated Upstream Pipeline Planned Dedicated Upstream Pipeline Existing Distribution Pipeline Ongoing Distribution Pipeline Planned Distribution Pipeline Existing Household Gas Network Planned Household Gas Network Kementerian ESDM Republik Indonesia 18

19 NATIONAL GAS INFRASTRUCTURE ROADMAP UNTIL 2030 Aggressive infrastructure development in eastern part of Indonesia Description Non Pipeline Gas Infrastructure Facilities Existing FSRU Ongoing FSRU Planned FSRU Existing LNG Plant Planned LNG Plant Existing LPG Plant Planned LPG Plant Kementerian ESDM Republik Indonesia Existing CNG Filling Station Planned CNG Filling Station Existing Receiving Terminal Regasification Terminal Existing CNG Station Gas Transmission & Distribution Network Existing Open Access Pipeline Ongoing Open Access Pipeline Planned Open Access Pipeline Existing Own Use Pipeline Planned Own Use Pipeline Existing Dedicated Upstream Pipeline Planned Dedicated Upstream Pipeline Existing Distribution Pipeline Ongoing Distribution Pipeline Planned Distribution Pipeline Existing Household Gas Network Planned Household Gas Network 19

20 35,000 MW Electricity Project 20 2,867 MW 267 MMSCFD 1,091 MW 86 MMSCFD 1,830 MW 147 MMSCFD 440 MW 48 MMSCFD 6,754 MW 423 MMSCFD 450 MW 38 MMSCFD TOTAL GAS NEEDED: 1,100 MMSCFD TOTAL POWER: 13,432 MW

21 21 LNG SUPPLY & INFRASTRUCTURE PROJECTS FOR POWER GENERATION PREPARED BY PLN PLN: Indonesia s state owned national electricity company 3* LNG Krueng Raya Nias Target: FSRU Belawan Target: * 8. FSRU Gorontalo Target: * LNG Maluku Papua Target: 2019 LNG Bangka Belitung Pontianak Target: * LNG Central Indonesia Target: FSRU Muara Tawar Target: LNG Terminal Gresik Target: 2021 *Scope of projects (1 4) include: LNG transport, storage & regasification facilities, jetty, and pipeline

22 NATURAL GAS UTILIZATION IN EASTERN INDONESIA USING VIRTUAL PIPELINE Kementerian ESDM Republik Indonesia 22 Gas distribution using Virtual Pipeline Scheme Realization: FSU Benoa, Bali

23 INDONESIA S 1 ST MINI LNG FOR POWER PLANT 23 Bringing LNG from Borneo to Bali Island LNG TERMINAL BENOA

24 CHALLENGES : OIL & GAS FACILITIES 24 Facilities that are not readily available/very limited in the domestic market: - Jack Up Rig - Jack Up Barge - Self Elevating Drilling Unit Semi Submersible Rig Deepwater Drill Ship Floating Production Storage and Offloading (domestic investment is still limited)

25 TECHNOLOGICAL CHALLENGES 25 Mitsubishi Heavy Industries FLOATING POWER PLANTS MINI LNG CARRIER INTEGRATED FLOATING MINI LNG AND POWER LNG MINI FLOATING STORAGE & REGAS UNIT

26 CLOSING REMARKS 26 1 Strategic projects in Indonesia s oil & gas industry which include: Upstream projects to boost reserves & production Midstream & downstream projects to make energy accessible from West to East Indonesia 2 3 Require significant technology to solve related challenges, accelerate development, and promote economic growth. To boost the role of gas as a driver for economic growth, Indonesia needs aggressive infrastructure development, particularly for LNG utilization for power generation in Eastern Indonesia.

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