Release: Indonesian oil and gas exploration and exploitation update Aug ?03

August 8, 2003 - At present, as many as 153 oil and gas Working Areas are found in Indonesia, of which 36 are in production. The 36 areas involve contractors which hold several types of contracts: 2 contractors with EOR (Enhanced Oil Recovery), 1 with JOA (Joint Operating Assistance), 3 with JOB (Joint Operating Body), 1 Pertamina (owner), 11 contractors with PSC (Production Sharing Contract), 17 with extension PSC, and 1 with TAC (Technical Assistance Contract). The government is making efforts to increase oil and gas exploration and exploitation activities in the coming years.

By end-June 2003, routine activities carried out under the supervision of the Directorate of Exploration and Exploitation included:

Oil and gas exploration activities included seismic surveys. In June 2003, production sharing contractors and Pertamina did not carry out any seismic survey. By end-June, however, a number of seismic study were undertaken including 2D New Venture onshore (onshore + offshore) of 1.671 kilometers long; 2D PSC (onshore + offshore) of 4.798 km long; 3D New Venture onshore (onshore + offshore) of 252 km long; 3D PSC (onshore + offshore) of 164.7 km long, and 4D PSC onshore of 7.43 km long. No contractor carried out exploration drilling; transfer of interest between Ellipse Energy Jatirarangon Wahana and PT. Wahana Sad Karya; returning of Inpex?s and Petronas Carigali?s working areas to the government; expiration of one exploration contract and the returning to the government of the contract area namely Lompa Block in South Sulawesi; data opening by three contractors namely Inpex Masela, ENI Indonesia and Santos Pty. Ltd., which enabled UPN students to access oil and gas well data from Kondur Petroleum SA; data exchange between Unocal Indonesia Company (Melahin/Kerindingan) and Pertamina (Sangatta); data transfer by ExxonMobil NSO/NSO Extension, PT. Exspan Nusantara, Vico Indonesia and BP Indonesia.

By June 2003, production activities included updating data on oil and gas reserves and field development; coordination of production activities; preparation of papers and speeches; and helping draft national energy policies.

By June 2003, as many as 11 working areas were offered namely Merangin I and II (onshore), Rembang and Bulu (offshore), South Madura (onshore and offshore), East Kangean and North East Madura I and II, North Bali I and II (offshore) and Tarakan (offshore). Tender for the blocks has been opened, and some investors have bought bid information documents. Pertamina?s contracts are being discussed, and efforts are being made to fulfill Direct Award requests from some production sharing contractors like Genting Oil Gas Ltd, Pearl Oil Holding, P.T. Mitra Archipelago and several companies from Portugal.

By end-May 2003, gas development projects included the settlement and evaluation of gas supply by ExxonMobil in Aceh; gas supply for Belawan combined cycle power plant; sales of ConocoPhillips? gas to Malaysia and Singapore; settlement of gas supply for West Java, central Java, East Java, East Kalimantan, South Sulawesi and Papua; settlement of Asian Development Bank and Trans-ASEAN Gas Pipeline grants; completion of several gas projects like Tangguh, and Indonesian gas marketing in foreign countries.

Gas exploration and exploitation projects carried out by end-May 2003 included those completed by PT. Caltex Pacific Indonesia (2002-2005) in the Balairaja fauna conservation area in Riau Province; the allocation of 3,266 hectares of forest area for Tangguh LNG project, 200 hectares for resettlement areas for locals, and 6,932 hectares for villagers relocated from Tangguh LNG project areas.

In addition to abovementioned projects, there were a number of activities meant to improve the quality of workers. (*)

Source: Directorate of Exploration and Exploitation of the Ministry of Energy and Mineral Resources.