PROPOSAL OF

FIGURE OF OIL AND GAS INDUSTRY IN INDONESIA, 2011

January, 2011
In Indonesia contains 60 potential hydrocarbon sedimentary basins spread from Sabang to
Papua, while the activity of oil and gas industry covers the activity of exploration and production of
oil and gas has been conducted only on 38 basins, while the other 22 basins has not been touch by
the industrial activity, which geographically located off shore in the Eastern part of Indonesia areas,
consisted of Sulawesi, Nusa Tenggara, Halmahera, Maluku, and Papua.

Referring to the data of the Ministry of Energy and Mineral Resource (KESDM), the success
ratio of exploration in Indonesia, including delineation drilling average of 38% or higher than the
other South East Asia region (30%). While the success ratio of wild cat well drilling is averagely 10%
higher. Finding cost of basin in the offshore region is also relatively lower than the other countries
in South East Asia.

Oil reserve in Indonesia is about 7.9 MMSTB (2009), while gas reserve is about 159 TSCF
(2009), currently, most of the oil production was derived from the old well with average natural
decline rate of 12%, while gas production from the 10 oil and gas Cooperation Contractor
(Kontraktor Kontrak Kerja Sama - KKKS) during one last decade, was increased up to two times.

So, gas production level in Indonesia contributed significantly to cover the lack of oil
production capacity in fulfilling the target of state revenue.

Based on the BPMIGAS data, during the last three years, oil and gas production was
reducing, from 2.393 thousand BOPED (2008) to become 2.369 thousand BOPED (2009), while the oil
and gas production as of September 2010 was still about 2,327,716 BOEPD.

However, until now, oil and gas industry is still the major contributor to the state revenue,
and ranked number one in the “Top 10” export commodity of Indonesia, and the role is predicted to
continue until the next 30 years.

Responding to the minimum oil production, the exploration activity is continued, either in
the mature area or in the frontier area, optimizing the existing oil well production is strived by the
enhanced oil recovery (EOR) method, hopefully, the reserve and production of oil and gas could be
increased up to about 35%.

To achieve the long term (2006 - 2025) target, with oil and gas production target of 8.05
BOEPD (crude oil 1.4 million BOEPD and gas 6.75 BOEPD), the new field production is accelerated,
re-opening the old well that still potential, and developing the marginal field.

Furthermore, the government is also conducting several breakthroughs, such as bureaucracy

efficiency and effectiveness of the regulation, upholding the law certainty in the upstream oil and
gas activity, and incentive for the oil and gas exploration and exploitation activity.

By discussing the condition and projection of the oil and gas industry in Indonesia, including
the progress of the production and its utilization, enriched with the prospect of the domestic oil and
gas resource, as well as the accelerated implementation of energy diversification policy, made this
book of study very beneficial for the oil and gas players, including the government, KKKS, and
involved corporations, financing institution, both domestic and international.
 The study is prepared in 550 pages, we offer at Rp 6,500,000 (Six million five hundred
thousand rupiah) per copy for the Indonesian version, or US$ 850 (Eight hundred and fifty US
Dollar) per copy in English Language. For ordering and further information, pleas contact PT
Media Data Riset by Telephone (021) 809-6071, 809-3140, Fax (021) 809-6071, or email:
sales@mediadata.co.id. The order form is attached to this letter.

Thank you for your kind attention.

Jakarta, January 2011

PT Media Data Riset

Drh. H. Daddy Kusdriana M.Si

President Director
 TABLE OF CONTENT
FIGURE OF OIL AND GAS INDUSTRY IN INDONESIA, 2011
January 2011

1. INTRODUCTION 3.5.2. Oil and Gas Production and Lifting

2. ENERGY IN INDONESIA Monitoring System
2.1. Hydrocarbon Potential Basin in Indonesia 3.5.2.1. Lifting Monitoring System
2.1.1. Crude Oil Reserve 2009 Function
2.1.2. Natural Gas Reserve 2009 3.5.2.2. Method of Lifting Monitoring
2.2. Domestic Coal Resource & Utilization 2010 System
2.2.1. Existing Coal Terminal (Status 2009) 3.6. Oil and Gas Contribution to the State
2.2.2. Coal Liquefaction location plan Revenue 2004 - 2010
2.2.3. Coal Production, Consumption, and 3.7. Oil and Gas Yield Spread Fund 2008 - 2009
Export, 2005 until 2010
2.3. Coal Bed Methane (CBM) Potential & Prospect 4. OIL AND GAS INDUSTRY PERFORMANCE
in Indonesia IN INDONESIA
2.3.1. Legal Ground of CBM exploitation 4.1. Oil and Gas Upstream Performance 2008 -
2.3.2. Road Map to CBM development in 2010
Indonesia 4.1.1. Oil and Gas Exploration Area in
2.3.3. Offering & Auction Winner of WK CBM Indonesia
2009 4.1.2. Oil and Gas Work Area, Status 2009 -
2.3.4. Auction Winner and Direct Offering of 2010
WK GMB 2009 - 2010 4.1.2.1. Oil and Gas WK holder 2008 -
2.3.5. Pertamina and Development Progress of 2010
GMB 4.1.2.2. Second Round Bidding Year
2.4. Geothermal Reserve and development in 2009
Indonesia 4.1.2.3. Direct Offering of Oil and Gas
2.4.1. Geothermal Exploitation Mode (Recent WK Phase I 2010
regulation) 4.1.2.4. Regular Tender of Oil and Gas
2.4.1.1. Geothermal Electricity Price WK Phase I 2010
2.4.2. Geothermal Installed Capacity (Status 4.1.3. Investment Flow (Upstream -
2010) Downstream) of Oil and Gas 2008 -
2.4.3. Progress of Geothermal Development 2010
2010 - 2014 4.1.4. Accelerated 2D & 3D Seismic Survey
2.4.3.1. IUP holder & Electricity Price of Realization
11 WK has been completed 4.1.5. Exploration and Discovery of New
auctioned Well 2003 - 2009
2.4.3.2. Timeline of Geothermal 4.1.6. Recapitulation of WP & B Exploration
development 2010 until 2016 2009
4.1.7. Development Drilling 2005 - 2009
3. OIL AND GAS RESOURCE AND ROLE IN 4.1.8. Recapitulation of WP & B Exploitation/
INDONESIA Production 2009
3.1. Development of Oil and Gas Resource 1993 - 4.1.9. Cost Recovery and Production Cost
2009 2002 - 2010
3.2. National Oil and Gas Policy 4.1.10. Well Production (New) 2008 and On
3.3. Oil and Gas Upstream Activity Scheme Stream field 2009
3.3.1. Chain of Revenue of National Oil and 4.1.11. Plan of Development (POD) on stream
Gas Industry 2011
3.3.2. Calculation Formula of Crude Oil 4.2. Accelerated Effort of National Oil and Gas
Acquisition Production 2010 - 2011
3.4. Producing Area & Producer of Oil and Gas in 4.2.1. Development of Marginal Oil Field
Indonesia by Region 4.2.1.1. Legal tool in the effort to
3.5. Lifting & Yield Spread of Oil and Gas, Central increase Oil and Gas
& Regional Production
3.5.1. Yield Spread Fund Mechanism 4.2.2. Pertamina EP Role in National Oil and
Gas Production
4.2.2.1. EOR & new reserve discovery
 4.2.2.2. Pertamina Acquired INPEX
Java Ltd
4.3. Oil and Gas Production Realization 2000 -
2010
4.4. Oil and Gas Lifting Realization 2008 - 2010
4.4.1. Lifting Target 2011
4.4.2. Oil and Gas Lifting By Operator 2007 -
2010
4.5. Profile of Oil and Gas Industry in Indonesia
2000 - 2010
5. PRODUCTION AND UTILIZATION OF
CRUDE OIL IN INDONESIA
5.1. Progress of Oil Reserve (Proven) &
Condensate 1993 - 2009
5.2. Crude Oil Infrastructure
5.3. Price Range of Indonesia Crude Oil Price (ICP)
2005 - 2010
5.4. Realization of Crude Oil Production 2006 -
2010
5.4.1. Oil & Condensate Production by
Operator 2006 - 2010*
5.4.2. Production, Consumption, Export &
Import of Crude Oil 2000 - 2010
5.4.2.1. Production - Consumption of
Crude Oil and Condensate 2000 -
2010
5.4.3. Crude Oil Export by Destination
Country per Year, 2000 - 2010
5.4.3.1. Crude Oil Export per month by
destination country 2000 - 2010
5.4.4. Crude Oil Import by Type per year, 2000
- 2010
5.4.4.1. Crude Oil Import by Type per
Month, 2000 until April 2010
5.4.4.2. Crude Oil Import by Producing
Country 2000 until April 2010
6. GAS RESERVE AND INFRASTRUCTURE
INDONESIA
6.1. Gas Reserve Growth in Indonesia 1993 - 2009
6.1.1. Infrastructure of National Gas (Status
2009)
6.2. Gas Refinery in Indonesia (Existing) Status
2009
6.2.1. Gas Refinery by Operator and Type of
Process
6.3. Gas Pipe Network in Indonesia
6.3.1. Pipeline of Grissik - Duri
6.3.2. Gas Transportation System Sumatera
and Natuna
6.3.2.1. Gas Transmission System South
Sumatera – West Java
6.3.2.2. Gas Transmission System East
Java
6.3.2.3. Gas Transmission system
Bontang – East Kalimantan
6.3.3. Gas Transportation System in Sulawesi
6.3.4. PGN Gas Pipe Network
6.3.5. Master Plan of Gas Transmission and
Distribution Network in Indonesia
7. GAS PRODUCTION & UTILIZATION IN
INDONESIA
7.1. Gas Potential and Role in Indonesia
7.2. Gas Price Ratio to Oil
7.3. General Description of Gas Supply &
Demand in Indonesia
7.4. General Description of Domestic Gas
Allocation
7.4.1. Accelerated PJBG Domestic 2003 - 2009
7.4.2. Fulfillment of domestic gas VS export
2002 - 2009
7.5. Natural Gas Production Realization 2009
7.5.1. Production & Utilization of Gas in 2000
- 2009
7.5.1.1. Natural Gas Production by
Operator 2005 - 2009
7.5.1.2. Gas Utilization by Operator
2000 - 2009
7.5.2. Additional Potential of Gas Production
2009
7.6. Natural Gas Development Progress in
Indonesia
7.6.1. Development Plan of Gas in Indonesia
(Status 2009)
7.6.1.1. GN & Three LNG Receiving
Terminal Project (Status 2009)
8. LNG PERFORMANCE IN INDONESIA
8.1. LNG Production in Indonesia 2006 - 2009
8.2. LNG Market of Indonesia
8.3. LNG Export Price Indonesia
8.4. LNG Export
8.5. Progress of LNG Contract Extension
Finalization RI - Japan 2011 - 2021
8.6. Trade-offs of Donggi Senoro Development
8.7. Controversial and Initial Export of Tangguh
Project
8.7.1. Tangguh Price Formula Dispute
8.7.2. Initial Export
8.8. Masela Development Progress
9. DOMESTIC GAS SUPPLY NEEDS AND
AVAILABILITY
9.1. City Gas Policy for Household
9.1.1. Legal Ground of City Gas for
Household
9.1.1.1. City Gas Network Development
Scheme
9.1.1.2. Auction of City Gas
Management is conducted
through Open Tender
 9.1.2. Gas for Electricity 2009 - 2018
9.1.3. PLN and National Electricity System
9.1.4. Primary Energy Utilization Trend for
PLN Power Plant
9.1.5. Primary Energy Cost for Power Plant
9.1.6. Natural Gas Consumption of PLN
9.1.7. Additional Power Capacity Plan 2009 -
2018
9.1.8. Projection of Primary Energy Needs for
Power Plan 2008 - 2018
9.1.9. Projection of Gas Share in Energy Mix
PLN 2009 - 2018
9.2. Gas & Revitalization of National Fertilizer
Industry
9.2.1. Investment Needs for Fertilizer
Revitalization Phase I & II
9.2.2. Revitalization Schedule (Tentative)
Phase I & II (2008 - 2024)
9.2.3. Fertilizer Plant in Indonesia
9.2.4. Urea Supply & Demand Indonesia 2008
- 2016
9.2.5. Revitalization of Production Capacity of
Five Fertilizer Plants (Phase I)
9.2.6. Gas Needs for Fertilizer Revitalization
Phase I & II
9.3. Domestic Gas Needs
9.3.1. Domestic Gas Industry
9.3.2. PGN, Export, and Gas Supply for
Domestic Industry
9.3.3. PGN customer growth 2002 – 2008
9.3.4. PGN gas consumption and based on the
industry segment
9.3.5. Projection of PGN gas needs 2009 – 2011
9.3.6. Projection of domestic gas needs until
2020
10. INDONESIAN FUEL
10.1. General condition of fuel utilization in
Indonesia
10.1.1. Energy mix and fuel consumption
reduction target 2006 – 2010
10.1.2. Primary energy domestic supply
10.1.2.1. Final energy consumption
by type
10.1.2.2. Final energy consumption
by sector
10.2. Domestic fuel policy
10.2.1. Procurement and Marketing Pattern
of National Fuel
10.3. Supply & Demand Condition of Domestic
Fuel
10.4. Regulation of Specification and Continuous
Supply of Fuel
10.5. Duty and Function of Oil and Gas
Institution in Indonesia
10.5.1. Role & Function of BPH Oil and
Gas
10.5.2. Progress of certain fuel
procurement 2010
10.5.3. Condition of Subsidized Fuel
Utilization 2010
10.6. Rearrangement of Subsidized Fuel 2011
10.6.1. Policy & Strategy of Rearrangement
of Subsidized Fuel 2011
10.6.2. Subsidized Fuel User Target in the
Land Transportation, 2011
10.6.3. Assumption and Projection of Fuel
Subsidy Saving 2011 - 2013
10.6.4. Road Map to the Implementation of
Subsidized Fuel Reduction 2011 -
2013
10.7. Role & Readiness of Pertamina
ATTACHMENT
- UU N0. 21 Year 2002 about Oil and Gas
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PROPOSAL OF

FIGURE OF OIL AND GAS INDUSTRY IN INDONESIA, 2011

January, 2011

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