SHALE GAS POTENTIAL TO CHANGE THE

DYNAMICS OF ENERGY SECURITY IN

INDONESIA

IGNATIUS TENNY WIBOWO

President Director
PT Pertamina Hulu Energi, Indonesia

20th Anniversary Coaltrans Asia

Bali, 1 – 4 Juni 2014
 OUTLINE

 INDONESIA SHALE GAS POTENTIAL

 GOVERNMENT REGULATION
 PERTAMINA STRATEGY TO DEVELOP SHALE GAS
 OPPORTUNITY AND CHALLENGES
 SUMMARY

20th Anniversary Coaltrans Asia

 Indonesia Gas Resources

ACEH (NAD)

5.74
NATUNA
NORTH SUMATRA

1.28 51.46
CENTRAL SUMATRA

8.56 18.33
PAPUA
EAST BORNEO
SOUTH SUMATRA
4.23
24.32
17.90 CELEBES

WEST JAVA

3.70
6.40 MOLUCCAS

EAST JAVA 15.22

(Advance Resources Interational, Inc., 2003 processed)

GAS RESOURCES = 334.5 TSCF CBM RESOURCES = 453.30 TCF SHALE GAS POTENTIAL
GAS RESERVES (As of December 31 st 2010)
Total CBM Basin = 11 Currently, the Government has been
PROVEN = 108.4 TSCF (Advance Resources Interational, Inc., 2003) doing initial study shale gas potential
in Indonesia
POTENTIAL = 48.74 TSCF
TOTAL = 157.14 TSCF Total Shale Gas Resource = 574 TCF
(As of January 1st 2012)

20th Anniversary Coaltrans Asia

 Indonesia Shale Gas Prospective Basin
Indonesia’s shale potential is estimated to be approximately 574 TCF

Kalimantan
193.93 TCF
Sulawesi
Papua
5.41 TCF
94.04 TCF

Sumatera
233.05 TCF

Java 47.64
TCF

Source : Ministry of Energy and Mineral Resources, April 2012

20th Anniversary Coaltrans Asia

 Indonesia Gas Production & Consumption
Indonesia Gas Supply & Demand

Source : Wood Mackenzie, 2012

Source : Ministry of Energy and Mineral Resources, April 2012

20th Anniversary Coaltrans Asia

 Shale Gas & CBM Forecasting Production in
Indonesia

Source : IHS (March 2012)

20th Anniversary Coaltrans Asia

 OUTLINE

 INDONESIA SHALE GAS POTENTIAL

 GOVERNMENT REGULATION
 PERTAMINA STRATEGY TO DEVELOP SHALE GAS
 OPPORTUNITY AND CHALLENGES
 SUMMARY

20th Anniversary Coaltrans Asia

 Minister Decree 05/2012
Unconventional oil & gas (Minister Decree 05/2012) is defined : as oil and gas
produced from reservoirs with low permeability through use of specific
technology (e.g. fracturing), including Shale Oil, Shale Gas, Tight Sand Gas,
Coal Bed Methane (“CBM”) and Methane-Hydrate

CBM Unconventional Oil & Gas

Regulation Minister Decree 36/2008 Minister Decree 05/2012
Contract Model PSC PSC
Pra POD Yes Yes
FTP 5 %-10% 10% ?

Exploration phase 6+4 6+4

20th Anniversary Coaltrans Asia

 OUTLINE

 INDONESIA SHALE GAS POTENTIAL

 GOVERNMENT REGULATION
 PERTAMINA STRATEGY TO DEVELOP SHALE GAS
 OPPORTUNITY AND CHALLENGES
 SUMMARY

20th Anniversary Coaltrans Asia

 Pertamina Vision and Mission
Vision : To be a world class national ENERGY company

Mission : To carry out integrated core business in oil, gas, new and
renewable energy based on strong commercial principles

PERTAMINA are Indonesian State Energy Company

World class
energy company
Leader in South & Asian Energy
East Asia Champion

Leading Company 2018 – 2025

in Indonesia 2013 – 2017 Global player
Regional player
2008 – 2012
National player

20th Anniversary Coaltrans Asia

 PERTAMINA SHALE HYDROCARBON EXPLORATION
AREA FOCUS

2016 - 2020
• North Sumatra • Kalimantan (Tanjung)
• Kalimantan (Sangatta)
• Central Sumatra • South Sumatra • Eastern Indonesia
• South Sumatra • West Java (Sulawesi, Papua, etc)
• East Java • Open Area
• Open Area

2012-2015 2021 -2025

20th Anniversary Coaltrans Asia

 NORTH SUMATERA SHALE GAS POTENTIAL

TOP TOP INTRES

INTEREST BAMPO FM.
LOWER
BAONG FM.

• Area North Sumatera (total acreage ±3000

Km sq).
• The objective formation for shale gas are
Lower Baong and Bampo Formation
• Depth : 6560 – 10600 ft (Lower Baong), 8200
– 12900 ft (Bampo)
• TOC : 0.56 -1.36 (Lower Baong), 0.56 – 1.98
(Bampo)
• IGIP 15 – 20 TCF (Based on Final JS Result)

20th Anniversary Coaltrans Asia

 OUTLINE

 INDONESIA SHALE GAS POTENTIAL

 GOVERNMENT REGULATION
 PERTAMINA STRATEGY TO DEVELOP SHALE GAS
 OPPORTUNITY AND CHALLENGES
 SUMMARY

20th Anniversary Coaltrans Asia

 CHALLENGES

Depth, Brittleness, Richness, Thickness,

Maturity & Gas Type (dry/wet)

GGR Aspect Less Expertise

Not competitive
price Employee
Human
Gas Price
Resources

Accessibilities
RISK / Drilling &
•
•
Land clearing
New Investment & ISSUE Completion
equipment
Service company's ability
to provide rig and
for gas facilities Facilities availability completion equipment

Fiscal term High

Investment
Not attractive High drilling &
fiscal system completion cost

20th Anniversary Coaltrans Asia

 PERTAMINA OPPORTUNITY

COULD BE??
.
.
HOW ??

LEADER IN
SHALE GAS
DEVELOPMENT
• Shale Gas potential areas are mostly
located in Pertamina existing areas • Focus in Shale Gas Development.
(CBM and Oil & Gas). • Improve Technical abilities
• Pertamina has experience in oil & gas • Partnership & benchmark to proven
conventional development. and competent companies
• Future Gas produced should absorbed • Cooperation with service company for
by dominantly domestic demand as drilling and completion equipment
first priority. • Government support
• Recent Gas Resources is provided
higher YTF in future exploration
20th Anniversary Coaltrans Asia
 OUTLINE

 INDONESIA SHALE GAS POTENTIAL

 GOVERNMENT REGULATION
 PERTAMINA STRATEGY TO DEVELOP SHALE GAS
 OPPORTUNITY AND CHALLENGES
 SUMMARY

20th Anniversary Coaltrans Asia

 SUMMARY
 Since an early of year 2012, Indonesia starts to develop Shale Hydrocarbon
within Ministry of Energy and Mineral Resources (MEMR) decree no 5/2012
regarding “Non Konvensional Hidrokarbon”
 According to MEMR decree no5/2012. Shale Hydrocarbon following PSC
(Production Sharing Contract) Model
 Indonesia have a significant potentiality of Shale Gas resources around 574 TCF
(MEMR,2012)
 Pertamina challenging issues in forward to develop Shale Gas in Indonesia are
regarding acreages, fiscal, operations, potentiality and resources.
 Several issues should be addressed to be solved in developing Shale Gas in
Indonesia such as: GGR Aspect, Land & Accessibility, Facilities, etc. that mean
more risks and need stimulus and incentives from Government as the
compensation
 Shale Gas has potential to change the dynamics of energy security in Indonesia
20th Anniversary Coaltrans Asia
 T hank You

20th Anniversary Coaltrans Asia