14 Pertamina CBM Project in South Sumatra

8/8/2019 14 Pertamina CBM Project in South Sumatra

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PERTAMINA CBM Projec tin South Sumatra

IndoCBM 2006Jaka rta, April 18 – 19, 2006

President Direc tor & CEOPT PERTAMINA (PERSERO)



Page 2

• PERTAMINA ’ s Business Ac tivities and Current

Aspiration• Where Does CBM Fit in?

•Our Efforts in CBM

• South Sumatra CBM Study Highlights

• Conc lud ing Remarks

Outline



Page 3

Business Activities

Upstream Other BusinessDownstream

Exploration (Oil & Gas)

Production (Oil & Gas)

Geothermal

Processing/refining

Marketing and distribution

Trading

Shipping/Transportation

LNG

14 subsidiaries and 17 joint

ventures

Health services/ hospital,

hotel/ property, shippingdocks, aviation,

construction, insurance,

etc.

PERTAMINA AS AN INTEGRATED OIL AND

GAS COMPANY


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PERTAMINA MAIN ACTIVITIES

• Upstream: Sec ond la rgest oil and gas p roduc er inIndonesia

•Downstream: Distribution of app rox. 1.2 million b/ d ofpetroleum p rod uc ts

• Refining: Over 1 million b / d of c apac ity

• LNG: Sa les of approx. 25 million ton/ year to the EastAsian market

• Domestic Gas Sa les: Growing untapped potentia l

demand , espec ia lly in West Java – Present sup p ly of 400 – 500 MMSCFD to fertilizer, steel plant,

power genera tion, and other industries

– Will inc rease by about 250 MMSCFD by end of 2006 – from South

Sumatra gas fie lds to be transported by PGN)



19

24

35

52

55

60

64

71

136

476

Vico

Unocal

PetroChina

Medco

Tota l SA

ConocoPhilips

Pertamina

CNOOOC

Caltex

BP 84

96

156

157

169

687

784

PetroChina

Kodeco

Unocal

Premier Oil

Medco

Vico

ExxonMobil

Pertamina

ConocoPhilips

Tota l

Indonesia Oil Produc tion

MBOPD

Indonesia Gas Produc tion

MMSCFD

1,091

1,107

2,300

Source: The Indonesian Petro Energy No. 2 year II, June - July, 2005; PT Pertamina EP



Law#22/2001

• New competitors in retailand industrial fuel

distribution• New, independentregulatory bodies

Subsidy anddistribution fee

changes• Fees for distributing PSOfuels changed from cost-plus to a MOPs + x margin

• Subsidy cuts reducebarriers to entry indownstream

Pressure forperformance

• Profit as core KPIinstead of volume

• Rising Governmentdemands for moredividends

Pertamina’sNew World

Need fortransparent andclean business

• Priority of currentgovernment to ensure

transparency andprofessionalism inbusiness sector

Source: McKinsey analysis

PERTAMINA IS NOW A LIMITED LIABILITY COMPANY

AND FACES ENORMOUS CHALLENGES



OUR ASPIRATION• To bec ome a world c lass integ ra ted oil and gas c ompany – on

par with other lead ing nationa l oil c ompanies

– Build ing on domina nt p osition in downstream

– Build E&P to bec ome a signific ant p layer – Sha p ing up refining , infrastruc ture, and log istic s

• We want to c hange our ima ge, to bec ome a c ompany tha t is:

– Confident – Clean

– Customer foc used

–Competitive

Internal transformation/restructuring is underway tostrengthen our fundamentals, including but not limited to,

changing the mindsets of the management and employees



Where Does CBM Fit in Our Ac tivities?

• As we asp ire to inc rease our E&P ac tivities, PERTAMINAwould like to enha nc e its role in supp lying na tura l gas to

the domestic market, while ma inta ining its signific antrole in the LNG business ac tivities

• CBM – when it is p roven to be ec onomic a lly exp loited

and p roduced – will add to the gas supp lies that can bemarketed to our c ustomers

• PERTAMINA will ta ke advantage of its c ustomer base

(and its potentia l g rowth) and the ava ilab ility of (bothc urrent and p rojec ted ) infrastruc ture, inc lud ing the onestha t a re d evelop ed by other c ompanies



Our Efforts in CBM

• Conc entrate on the area that:

– Has good potentia l of CBM resourc es

– Has suffic ient infrastruc ture – Close p roximity to our ma in customers

• Our initia l p rojec t w ill c oncentra te on South Suma tra , whic h

meets the above c riteria . While the last two c riteria a reobvious, we a re working on ensuring tha t the resourc es a rethere and that the CBM c an be ec onomic a lly and sa felyproduced

• PERTAMINA has done a p reliminary stud y on CBMdevelopment in South Sumatra , whereas a p ilot p rojec t a reahas been p roposed by the Government (lead by LEMIGAS)



South Sumatra CBM Study Highlights

• The stud y sta rted on Februa ry 2002, and used existingda ta of seismic and log

• The c oa l layers were identified a t about 600 to 1300 m indepth

• The study identified potentia l CBM resourc es of 124 TCF

• Environmenta l impac t was studied . For examp le, thewa ter p roduced (as a by-p roduc t of CBM) is p roposedto be injec ted into the non-p roduc ing wells surround ing

the p ilot p rojec t a rea .



MUSI

CILEGON

RAMBUTAN BETUNG

BENUANG

PRABUMULIH CBY

2 8 ” - 3 7 k m

28” - 23.8 km 28” - 19 km 28” - 19 km2 8 ” - 2 3 .7 k m

2 4 ”

- 5 9 k m

3 6 ” - 3 9 0 k m

TERAS

SCHEMATIC GAS TRANSMISSION NETWORKSCHEMATIC GAS TRANSMISSION NETWORK

SOUTH SUMATRA GAS PROJECTSOUTH SUMATRA GAS PROJECT

Q7 P7

100 430

Q8 P8

392 500

NOTE :

S : COMPRESSOR SUCTION (PSIG)D : COMPRESSOR DISCHARGE (PSIG)P : GAS PRESSURE (PSIG)Q : FLOWGAS (MMSCFD)

BHP : BRAKE HORSEPOWER (HP)

: EXIST. FIELD

: FIELD GAS COMPRESSOR

: BOOSTER GAS COMPRESSOR

: CENTRAL PROCESSING PLANT (CPP)

: NEW GAS TRANSMISSION

: NEW FIELD GAS PIPELINE

: EXISTING GAS PIPELINE

MERBAU

PAGAR DEWA

TASIM

PRABUMENANG

LEMBAK

TUNDAN 6 ”

- 1 5

k m

1 0 ” -

1 8, 1 k m

6 ” - 3 k m

4” - 5 km

4 ”

- 1 8

. 3 k

m

SP.Y

14” - 50 km

P= 680 P= 620P= 550

Q : 10

D : 563

BHP: 1534

WELL : 3

Q : 150

S : 50

D : 770

BHP : 37260

WELL : 33

Q : 20

D : 500

BHP : 1950

WELL : 8

Q : 10

D : 550BHP : 1120

WELL : 4

Q : 70

D : 540

BHP : 8280

WELL : 19Q : 5

D : 530

BHP : 1120

WELL : 3

Q : 150S : 254

D : 630

BHP : 12420LIMAU

1 0 ”

- 2 7 ,5 k m

24” - 11 km

2 4 ” - 1 0, 1 k m

20” - 58,3 km

BERINGIN

14” - 58,3 km

1 0 ” - 1 0, 1 k

m

CPF PAGARDEWA



The CBM Stud ied Area(Satellite Image of South Sumatra)



Page 13

CBM Area Study

PERTAMINA DOHSUMBAGSEL

TOTAL NET ISOPACH CBMMUARA ENIM FORMATION

CI : 10 MBy. Marzuki & B.Tamtomo

0

120 M

50 M

TOTAL CBMAREA

STUDY15.075 KM2

PERTAMINA10.135 KM2

PSC / JOB4.940 KM2

0 M



Page 14

Result of Preliminary Study

on South Sumatra CBM Potentia ls

POTENSI CBM DI SUMATRA SELATAN

92

32

124

0

20

40

60

80

100

120

140

PERTAMINA DOH SBS KPS KUMULATIF

GAS

T C F

PERTAMINA DOH SBS

KPS

KUMULATIFPTM DOH SBS

KPS / JOB



Page 15

Conc luding Remarks

• In fac ing new c hallenges b rought ab out by the Laws,Regula tions, and its sta keho lders’ expec ta tions, PERTAMINAasp ires to b ec ome a signific ant E&P c ompany. We a re to

embark on ac c umula ting new reserves and inc reasingprod uc tion of oil and gas

• In meeting domestic gas demand , PERTAMINA will leverage itsposition based on its c ustomer base and ava ilab le infrastruc ture

• CBM fits stra teg ic a lly with our intent to inc rease our ro le inmeeting untapped domestic gas demand, most notab ly in WestJava , where our ma in c ustomers a re loc a ted

• South Suma tra meets our c riteria for develop ing a CBM projec t,whic h inc lude signific ant potentia l resourc es to be exp loited ,ava ilab ility of infrastruc ture, and the p roximity to our ma incustomers.



Page 16

Thank you

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14 Pertamina CBM Project in South Sumatra