bp migas annualreport2010
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MISSION AND VISION
CORE VALUES
STATEMENT FROM THE CHAIRMAN
EXECUTIVE HIGHLIGHTS
REALIZATION OF UPSTREAM OIL AND GAS IN 2010
PELAKSANAAN PROYEK HULU MINYAK DAN GAS BUMI
NATIONAL CAPACITY EMPOWERMENT & K3LL
INTERNAL BPMIGAS
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BPMIGAS Annual Report 2010
PROFESSIONALAct as a professional with strong commitment
RESPONSIVEPromptly responding to inquiries and resolving issues
UNITY IN DIVERSITYSynergizing the differences for greater achievements
DECISIVETaking Calculated risk within the authority
ETHICSConducting business by following the highest ethical standards consistently
NATION FOCUSEDMaximizing national capacity and capability
TRUSTWORTHYMaintaining credibility to earn the trust of stakeholders
0403
MISSION AND VISION
MISSIONSupervise and control the Production Sharing Contracts’ implementation through
partnerships in order to ensure the effectiveness and efficiency of upstream oil and gas
business activities for the greatest welfare of the Nation.
VISIONBe a proactive and trustworthy partner in optimizing the benefits of the upstream oil and
gas industry for all stakeholders while becoming one of the Nation’s engines in mobilizing
different economic and industrial activities.
STATEMENT FROM THE CHAIRMAN
Assalammulaikum Wr.Wb.
Today, upstream oil and gas industry still serves as one of the primary state revenue
generators. Within the last 3 (three) years period, the upstream oil and gas industry has
been contributing around 30% of the entire state revenue.
Given the fact that natural oil and gas are considered as non renewable energy sources,
BPMIGAS has initiated and pushed a shift function of the upstream oil and gas industry from
being the state revenue generator to become an economic growth engine. Several attempts
have been undertaken to realize this paradigm, which among others, was by involving other
domestic business sectors to actively support the industry, ranging from banking to other
supporting industries.
The use of energy for domestic consumption was also being the top priority concern for
BPMIGAS, whereas that particular decision has eventually rolled a multiplier effect condition,
as a result of the strong impact of the “pro growth, pro poor, pro-employment” policy set
out by the Government. Implementation of this decision still prioritizes on environmental
protection aspect aiming at sustainable development. Therefore, BPMIGAS should develop
the required effective and holistic management of demand, infrastructure and oil and gas
supply as first priorities.
Upstream oil and gas industry recognized the increasingly challenging journey along with
all the involving operational, fiscal or legal aspects. Moreover investor’s perception toward
non-conducive investment climate added to the upcoming challenges that must be properly
addressed through hard working and smart working attitudes. To that, BPMIGAS invites all
stakeholders including other government institutions and business players to work together
and strengthen the synergy through effective communication and coordination so that the
upstream oil and gas industry can run its duties and responsibilities to the nation.
Wassalammulaikum Wr.Wb.
Kepala BPMIGAS
Ir. R. Priyono
CORE VALUES
BPMIGAS Annual Report 2010 0605
PERFORMANCE HIGHLIGHTS 2010
Through effective planning and supervisory functions, and in line with the efforts of seeking
a conducive investment climate for investors of upstream oil and gas industry, the Upstream
Oil and Gas Executive Agency (BPMIGAS) succeeded in dealing with such a challenging year
2010 then closed the year with an encouraging performance. Contribution of the upstream
oil and gas industry to the State Budget (APBN) has increased and could even lead to other
sectors’ growth. Therefore, some accomplishments to note for the year 2010 were as follows:
Generated revenues of US$26.49 billion or 32.78% higher than 2009 revenues, which
amounted to US$19.95 billion. The actual state revenue in 2010 also exceeded the targeted
state budget for year 2010 totaled US$26.06 billion or 100.6%.
Increased realization of the natural oil and gas lifting by 11.7% from 2,033 million barrels of
oil equivalent in 2009 to 2,271 million barrels of oil equivalent per day by 2010. These figures
could be achieved due to the successful attempts of BPMIGAS together with PSC Contractors
in pushing down the declining rate of crude oil production of the average initial decline rate
by 12% to 0.43%.
Maximized the use of national banking system to support procurement of goods and
services transactions in the upstream oil and gas sector and depository of Abandonment
and Site Restoration (ASR) funding in the long term. During 2010, total transaction value we
conducted through national banking system reached US$8.59 billion (around Rp76 trillion)
and total deposited ASR funds reached US$167 million. This policy implementation has been
started since late 2009 and was proven successful in strengthening the entire national
banking sector.
Maximized the use of domestic goods and services to support the upstream oil and gas
industry. Domestic Containment Level (TKDN) of goods and services procurement in 2010
reached US$6.84 billion or 63.43% of total procurement value of US$10.79 billion. The
realization was higher than year 2009 TKDN, which recorded 62% of total procurement value.
Increased gas utilization to meet the increased domestic demand from 15.28 trillion cubic
feet (TCF) in 2009 to 20.09 TCF in 2010. This volume increase lifted the domestic industry
more efficiently while pertaining a high competitive capacity amidst the tightening global
competition.
BPMIGAS ensured that future production activities can be better managed to increase the
commitment of PSC Contractor to undertake exploration drilling activities throughout 2010
that covered a total of 95 wells or 26.6% higher than year 2009 figure, wherein 75 wells
were completed. The success ratio of exploration drilling in 2010 reached 46.27% and was
managed to find a contingency reserve totaling 489.4 million barrels of oil equivalent.
Increased cost efficiency initiative in upstream oil and gas sector through joint procurement
activities with the PSC Contractors and through material transfer system (maximization
of the use of material surplus, inactive assets and used material). In 2010, the achieved
savings value resulted from the joint procurement initiative amounted to US$70.19 million or
increased by 111% from US$33.20 million in year 2009. Meanwhile, total savings generated
through material transfer amounted to US$34.80 million or increased by 27% from US$27.50
million in year 2009.
Improved planning and budgeting mechanisms of the upstream oil and gas industry by
accelerating approval of Contractor’s Work Program and Budget (WP&B) to fasten the
realization of the PSC Contractors’ field activities as scheduled. The 2011 WP&B has been
approved on 16 December 2010 or earlier than the initial execution schedule that was dated
1 January 2011.
Reformation of BPMIGAS organization that drove all programs toward a clearly directed and
measured implementation, which in accordance with each department’s roles and authority.
SIGNIFICANT REMARKS 2010
Many problems interfered the realization of upstream oil and gas industry during year 2010,
mainly related to ongoing overlapping regulations. However, the following problems have
been resolved :
The issuance of Government Regulation No.79/2010 on Cost Recovery and Tax Income for
the Upstream Oil and Gas. Although this rule has been deemed legally uncertain by the PSC
Contractors, but at the same time also deliver certainty to incomplete tax issues we dealt
with during the past recent years.
Issuance of the Minister of Environment Regulation No.19/2010 to replace the Minister
Regulation No.04/2007 regarding Waste Water Quality Standard for Enterprises and/or Oil and
Gas and Geothermal Activities, which have accommodated the PSC Contractor’s operational
conditions as regards water quality standard.
Enactment of the Minister of Finance Regulation (MFR) No.165/2010 to replace the MFR
No.135/2009 has simplified material exchange process used by PSC Contractor and waste
disposal mechanism, of which the approval can now be done directly by BPMIGAS and do not
necessarily need other institutions’/agencies’ approval (depending on the material value).
EXECUTIVE HIGHLIGHTSLAPORAN TAHUN 2011BPMIGAS
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BPMIGAS Annual Report 2010 0807
CONSTRAINTS FACED BY UPSTREAM OIL AND GAS SECTOR
Various problems lie ahead our current journey, awaiting the accurate, quickly and
comprehensive solutions that can disable any negative impacts that may be affecting our
efforts in achieving future production targets including:
Among others, various laws and regulations have been issued by either the Central
Government or Local Government, and that caused the following constraints:
Spatial issues as stipulated by Law No.26/2007 regarding Spatial Planning. Based on
that law, the Local Government was authorized to organize spatial planning. While
the Local Government was in progress of setting out the Spatial Planning (RTRW),
the ongoing upstream oil and gas business activities was however often overlooked.
In line with the Regional Autonomy framework, various regulations that were issued
by Local Government have apparently burdened the upstream oil and gas sector.
The current overlapping of land and activities between activities of upstream oil and
gas industry with the activities of coal mining, agriculture, plantation, forestry and
community land management especially relating to the local people’s courtyards.
Gas utilization for domestic industry still found the following barriers, among others were:
Determination of gas prices was still relatively low that it could not meet the minimum
economical conditions required for the project.
The limited availability of infrastructure to meet the particular needs of the domestic
gas transmission and distribution network that linked the production field to gas
consumers.
Long-term export contracts that were not diverted domestically within a short time period.
In general, the upstream oil and gas industry activities succeeded to reach the set targets
and have been considered as revenue generator, while at the same time being the economic
growth engine. Hence it is worth to say that this industry has then become one of Indonesia’s
economic driving engines.
BUREAUCRACY REFORM TO ENHANCE BPMIGAS CAPABILITY
In effort of improving the performance of upstream oil and gas industry, BPMIGAS conducted
a bureaucracy reform to create a more effective and efficient way to achieve the set
production targets. The reforms include the following 8 (eight) aspects of :
Improving the mindset and work culture through new core values comprising: P.R.U.D.E.N.T
(Professional, Responsive, Unity in Diversity, Decisive, Ethics, Nation-focused, Trustworthy)
Improving the ability of organizations to restructure the organization to be more effective
and efficient in monitoring and controlling the upstream oil and gas
Improving Corporate Governance by changing business processes, Standard Operating
Procedures (SOP) and Standard Guidelines for Management Authority (PSKM) according to
a new organizational form and by formulating and revising the Rules of Employment (PTK)
Improving the quality of Human Resources (HR) through implementation of competency-
based human resources management, by adding the number of workers accordingly to the
required competency and adjustment of job descriptions to the newly reformed organization.
Enhancing accountability by establishing and monitoring the performance measurement
through Key Performance Indicators (KPI).
Improving supervisory role through improved internal control systems to obtain better
auditor’s opinion, which then be followed up by Indonesia’s State Auditor’s findings along
with validation of the Code of Ethics and Whistleblower program.
Providing inputs relating to legislation improvement, which include Shipping Law,
Government Regulation on Cost Recovery and Upstream Oil and Gas Taxation Rules.
Improving public services by accelerating the WP&B and AFE approval process as well as in
conducting surveys regarding PSC Contractor satisfaction to BPMIGAS services.
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REALIZATION OF UPSTREAM OIL AND GAS IN 2010
1OIL AND CONDENSATE LIFTING
Achievement
954 ribu BOPD (98.9%)
NATURAL GAS LIFTING
Achievement
7681 BBTUD (99.0%)
STATE REVENUE
Achievement
US$26.22 Miliar(100,6%)
UPSTREAM OIL AND GAS PERFORMANCE IN 2010
BPMIGAS Annual Report 2010
Realization of Upstream Oil and Gas in 2010
1211
In line with the government’s efforts to enhance oil and gas (O&G) discovery and reserves in
new Work Area as well as in improving O&G production and lifting, we always seek to discover
new work areas.
There were 27 new work areas in 2010, which consisted of 21 O&G work areas and 6 (six)
Coal Bed Methane (CBM) work areas. In addition, there were also some work areas that have
been terminated due to incompletion of commitments. Given those activities, as of end 2010,
Indonesia owned a total of 245 work areas comprising 67 production work areas and 178
others that were under exploration.
ADDITIONAL WORK AREAS
Yeas
New PSC
Production PSC
2005
7
5
2006
5
0
2007
28
0
2008
41
0
2009
33
1
2010
27
1
Meanwhile, the Exploration work areas consisted of 23 Coal Bed Methane (CBM) work areas,
150 O&G work areas and 5 (five) terminated work areas due to unfulfilled commitments. Those
5 (five) terminated work areas were Yapen (Nations Petroleum) and East Bawean II (Husky
Oil), Rembang (Orna International Ltd.), Offshore Halmahera Maluku (Halmahera Petroleum
Ltd.) and Donggala (Santos).
Throughout 2010, BPMIGAS also provided recommendations to the government (O&G
Directorate General) to determine the terms and conditions to be applied at 44 new O&G
work areas and 8 (eight) CBM work areas. This activity was conducted ar part of BPMIGAS
main responsibilities for providing inputs to the government prior to establishment of new
work areas.
Exploration activity is carried out to search for more accurate and detailed information about
conditions of the working areas as well as the O&G resources both in the Exploration and
Production work areas. The exploration activities include geophysical activities (through 2D
seismic and 3D seismic surveys), exploration drilling, coring and production examination. In
parallel, the CBM work areas conducted extra drilling and dewatering activities.
Both the Geology and Geophysics (G&G) study and Technical Assistance from Abroad (TSA)
implementations were undertaken after approval from the Authorization For Expenditure
(AFE). In 2010, there were 259 AFE G&G Studies and 36 AFE TSA explorations. Moreover,
budgeting for the G&G Study and TSA exploration totaled US$78.95 million, which covered
US$70.64 million (89%) for the G&G study allocation and US$8.31 million (11%) was allocated
for the TSA.
G & G STUDY AND TSA
For the 2D seismic survey, we have completed 89% or 27,606 km out of 31,181 km being planned.
As for the 3D seismic survey, an area of 7,411 km2 has been realized, which represented 81%
of 9,612 km2 being planned. The main constraint lied on land acquisition activities that will
be involved to support successful seismic activity. BPMIGAS then coordinated with related
agencies (mainly the BPN and the Ministry of Forestry) to overcome these obstacles.
GEOPHYSICS SURVEY
3500030000250002000015000100005000
0
2004 2005 2006 2007 2008 2009 2010
2D Seismic Realization (km) 3D Seismic Realization (km2)
EXPLORATION ACTIVITIES02
WORK AREA OF UPSTREAM OIL AND GAS INDUSTRY
WORK AREA OF UPSTREAM OIL AND GAS INDUSTRY01
SEISMIC SURVEY REALIZATION
BPMIGAS Annual Report 2010
Realization of Upstream Oil and Gas in 2010
1413
Throughout 2010, the actual well drilling explorations totaled 95 wells or 75.4% of 126 wells
being planned. In year 2010, total realization of the successful drilled exploration wells was
21% higher than the year 2009 figure. Some activities are still underway beyond what has
been initially scheduled, and the delay was mainly caused by land acquisition and licensing
issues. Moreover, those activities that were incomplete in year 2010 will be carried over into
year 2011 realization.
EXPLORATION DRILLING
Total Well Realization
Wildcat Well Realization
Delineated Well Realization
CBM Well Realization
100
90
80
70
60
50
40
30
20
102003 2004 2005 2006 2007 2008 2009 2010
COMMITTED TO THE ‘PASTI’ PROMISEDuring year 2010, a firm compliance to the definitely (pasti) promise throughout the
exploration work areas during the ongoing seismic activities experienced many on-field
obstacles and that caused incomplete realization. For instance, 69% of the 2D seismic
activity has been accomplished while the 3D seismic activity achieved 45% of the total plan.
0
69%
0%
0%
9%
24%
26%
Realisasi Rencana
26%
Production Test
Dewatering
CBM Drilling
Coring
Eks Drilling
3D Seismic (Km2)
2D Seismic (Km)
20 40 60 80 100
Some of the main obstacles we faced last year were related to the procurement of supporting
equipment needed in the seismic activity including rigs and ships (23%), licensing problems
in the working area (13%), overlapping of activities such as with forestry (22%), social
community problems (2%) and country border disputes (2%).
Due to all the problems we faced in the work areas, 44 Exploration areas have not been
implemented accordingly to the pasti commitment, as it is stated in the contract.
Meanwhile there were only 4 (four) Exploration work areas that have successfully met the
pasti commitments in accordance with the signed contract terms and conditions, which
prevailed in Batanghari in Jambi (CNOOC Batanghari Ltd.), Sekayu in South Sumatra (Star
Energy (Sekayu) Ltd., Karang Agung in Musi Banyu Asin (PT Odira Energy Karang Agung) and
Randugunting in West Java (PT Pertamina EP).
In fulfilling the pasti commitment, North East Madura (NEM) III work area manager Anadarko
proposed to the Directorate General of O&G as regards amendments to the pasti commitment,
and has gained the Government approval (O&G Directorate) on specific issues related to the
purchase of 3D seismic data for a 2,560 km2 area, which then was noted as meeting the
past commitments.
G&G Technique/ exploration strategy
Local government permit
Forestry overlapping
Internal issues/ non-active
Electricity/ Power quota
Socio-community
Rig/ ship supply, etc
32%
13%
9%
23%
2%
19%
2%
DRILLING ACTIVITY REALIZATION
WORK PLAN AND REALIZATION OF PASTI IMPLEMENTATION IN 2010
PROBLEMS FACED IN EXPLORATION WORK AREAS
DISCOVERY OF RESERVESThrough the well drilling activities conducted at 20 wells located in Exploration and Production
working areas in year 2010, BPMIGAS founded 20 prospective wells containing promising oil
and gas reserves. In total, we found about 140 million barrels of oil (MMBO) and 2,095 billion
cubic feet of natural gas (BCFG) or equivalent to 490 MMBOE.
To date, supported by the discovery of new petroleum reserves in 2010, which amounted to
140.2 MMBO and total production of 344.9 MMBO (945 MBOPD), the reserve replacement rate
(RRR) for year 2010 reached 41%. In other words, each production of 1 (one) barrel petroleum
was replaced only by 0.41 barrels of exploration results. Ideally, for a minimum production of
1 (one) barrel of oil can be replaced with 1 (one) barrel of exploration discovery.
Discovery of
contingency reserves
in year 2010 amounted
to 489.4 million barrels
of oil equivalent
BPMIGAS Annual Report 2010
Realization of Upstream Oil and Gas in 2010
1615
With the new findings, the amount of proven and potential reserves of oil and natural gas
as of 1 January 2011 recorded 7.41 billion barrels of oil and 153.72 TSCF or equivalent to 33.04
billion BOE. Details of Indonesia’s oil and gas reserves are as follows:
Given the current reserves’ findings, if we are producing at the current production capacity,
thus, the Indonesian oil reserves can meet the energy needs demanded for next 12 years,
while the natural gas can meet the next 46 years of gas demand.
TOTAL
JOB Working Area Well’s Name MMBO BCF G MMBOE
PT. PERTAMINA EP
Petro China International Jabung Ltd.
Petro China International (Bermuda)Ltd.
PT. Seleraya Merangin Dua
Eni Muara Bakau BV.
Anadarko Indonesia Nunukan Company
OT. Chevron Pacific Indonesia
JOB Pertamina-Petrochina East Java
PT. Sumatera Persada Energi
CITIC Seram Energy Limited
Serica Kutei B.V.
0
0
0
0
0
12.6
12.7
6
23.1
0
38.7
729.8
318.4
426.7
492
0
0.075
0
0
35
2095.1
1.1
7.6
1.9
3.3
15.5
2.1
2.1
8
5.8
2.3
15.8
121.6
53.1
71.1
170.5
0.7
0.1
1
0.1
5.8
489.5
1.1
7.6
1.9
3.3
15.5
0
0
7
2
2.3
9.4
0
0
0
88.5
0.7
0.1
1
0.1
0
140.2
Pondok Makmur-C
Pondok Makmur-D
Pondok Makmur-E
Jati Keling
PrabuMenang
PagarDewa Selatan-1
North Kedung Tuban-A
Panen Utara-1
Sabar-3
North Walio-1
West Belani Ext.1
Jangkrik-1
Jangkrik-2
Jangkrik-3
Badik-1/ST1
Prima-1
Lengowangi-2A
Pendalian-4
Nief Utara A-3 (USRD)
Dambus-1
Indonesia
Jabung
Kepala Burung
Merangin II
Muara Bakau
Nunukan
Rokan
Tuban
West Kampar
Seram
Kutai
PRODUCTION ACTIVITIES 03
FIELD DEVELOPMENT PLANDuring year 2010, BPMIGAS received 48 proposals for this field development conducted by
the PSC Contractor (Plan of Development-POD). Through evaluation process, 32 documents
have been approved, 9 (nine) documents are still under evaluation and 7 (seven) POD were
returned. Most of the POD returned documents were lack of comprehensive data, which
made the evaluation process difficult.
Out of all approved POD, it is expected that these fields’ development can reach 194.1 MMBO
of oil production and 1533.74 BSCF of gas production. The costs required to develop the field
amounted to US$3.33 billion.
9
7
32
Approved plan
Returned plan
Decision in-porgress
0.23
1.01
3.33
Dalam Miliar US$ Investment
OPEX
ASR
RESERVES DISCOVERY IN 2010
Reserves
Oil+Condensate
(MMSTB)
GAS (Associated + Non Associated)(TSCF)
Oil+Gas (MMBOE)
Produced
Proven
3.604,56
36,08
9.617,83
Potential
3.089,58
15,08
5.599,45
Proven
280,78
68,90
11.764,89
Potential
444,73
33,67
6.055,82
7.419,64
153,72
33.040,98
TotalNot yet produced
INDONESIA RESERVES’ STATUS IN 2010
POD PROPOSED BY THE PSC CONTRACTOR IN 2010
RINCIAN BIAYA YANG TERCANTUM DALAM POD 2010
BPMIGAS Annual Report 2010
Realization of Upstream Oil and Gas in 2010
1817
In effort of reducing the declining rate of the completed field production, the PSC Contractor
have carried out additional well drillings (infill/insertion wells) as well as well maintenance. In
2010, total number of well drilling or exploitation activities reached 951 well drillings, which
exceeded 933 wells as targeted for year 2010.
EXPLOITATION & WORKOVER OF WELL DRILLING
In year 2010, well maintenance activities were completed through work-over and well service
to a total of 1,439 wells, which represented 97% of the targeted 1,487 wells. Most of the
workover activities have been performed in PT CPI’s working areas.
WELL DRILLING PLAN AND REALIZATION EOR PROGRAM IMPLEMENTATION IN 2010
1400
1200
1000
800
600
400
200
0
Planned
Realization
2005 2006 2007 2008 2009 2010
WP&B
Realization
2009
WORKOVER REALIZATION
1700
1650
1600
1550
1500
1450
1400
1350
13002010
Jum
lah
Wor
kove
rENHANCED OIL RECOVERY (EOR) ACTIVITY
EOR is considered as an advanced drain technology adopting water injection, steam,
chemicals, gases and microbes to enhance production of the already mature oil fields. In
2010, a number of PSC contractors strived to increase production using EOR technology
through water injection, steam injection, gas injection and chemical injection. Through EOR
activities, total oil production reached 332,717 BOPD.
PSC Contractor
PT CPI
PT Medco E&P
PT Pertamina EP
PT BOB - BSP
Total Indonesie
CNOOC
JOB Pertamina - Talisman
PT CPI
Field
Minas, Bekasap, Bangko, Balam South,Telisa, Libo SE, Kota Batak, Pungut,Cebakan dan Aman
Rantau, Talang Akar, Supa, Sago, TL. Jimar,Tanjung, Benakat, Benakat Timur, TT Barat, Beragai, Lirik, Kenali Asam, Tempino, Limau, Nglabo dan Kawengan
Krisna Upper BRF, Krisna Lower BRF, Widuri, Intan, Vita Anryani, East Widuri dan Zelda
NE Air Serdang dan Guruh
Duri dan NDD
Zamrud, Pusaka, Beruk, Peudada dan Sabak
Handil Phase I dan II
Kaji Semoga
TambahanMinyak(Incremental Oil)BOPD
98,526
3,525
26,438
7,620
3,075
4,808
4,678
184,047
148,670
184,047
332,717
ProduksiPrimer(Baseline)BOPD
17,962
8,653
-
-
-
-
-
31,761
1,459
31,761
3,687
Water Flood
Steam Flood
Total Water Flood
Total Steam Flood
Total EOR
Some EOR activities have been undertaken in Handil Field, East Kalimantan managed by
Total E&P Indonesie by injecting gas into the reservoir. To date, this activity was stopped
from proceeding further because the injected gas we normally use in production was being
utilized to meet commitments to the buyers.
Currently, some PSC Contractors are performing EOR studies. Among others, include, PT
Chevron Pacific Indonesia who studied the Minas Field (using chemical) and PT Medco E&P
who studied Kaji Semoga Field (using chemical). For that reason, BPMIGAS encouraged the
PSC Contractors to increase their production using these technologies.
BPMIGAS Annual Report 2010
Realization of Upstream Oil and Gas in 2010
2019
OIL AND GAS PRODUCTION04
In 2010, the actual of Indonesia’s oil and gas production amounted to 2.52 million barrels
of oil equivalent per day (BOEPD) or 6.56% higher than year 2009 realization of production.
That increase in gas production was considered significant as it recorded the highest level
throughout Indonesian oil and gas history, which eventually boosted the overall oil and gas
production. That increase in year 2010 natural gas production has also brought a notable
production level as much as year 2003 production achievement. That represents a gradual
increase in the decreasing production that have occurred since 2003.
BPMIGAS WP&B has successfully gained approval prior to end of year, which has allowed the
PSC Contractors to carry out production since early year 2010. The increasing production
trend was indicated by the actual production recorded in January to September 2010, so that
the average daily production can reach the budgeting target at around 965 thousand BOPD.
OIL AND CONDESATE
2,750
2,500
2,250
2,000
1,750
1,500
1,250
1,000
750
500
2502000 2001 2002 2003 2004 2005 2006 2007
Gas Kondensat Minyak
2008 2009 2010
Rib
u B
OEP
D
950,000
900,000
850,000
800,000
750,000JAN-10 FEB-10 MAR-10 APR-10 MAY-10 JUN-10 JUL-10 AUG-10 SEP-10 OCT-10 NOV-10 DEC-10
APBN= 965 MBOPD
OIL AND CONDENSATE PRODUCTION FOR YEAR 2010 - (BOPD)
As of end September 2010, the oil pipeline operated by Indonesia Gas Transportation (TGI)
experienced a broke down and that caused 3 (three) PSC Contractors to stop their production
for several days as their pipes could not properly deliver their oil to Dumai storage tanks. The
three PSC Contractors include PT CPI, PT BOB BSP and PT SPR Langgak. As a result, national
gas production decreased to 166.5 thousand BOPD, which eventually took a long time and
needed extra efforts to restore production to its initial level of production.
Other operation disorders have contributed significantly to the declining oil production
throughout 2010 was the crash incident of TO-40 owned by Kodeco Energy Co by an unknown
ship who is still unidentified up to now. Due to improper functioning of the ship, eventually,
the oil production decreased to 2,400 BOPD.
Given the fact that most of the oil production facilities have been in operation for more than 20
years, incidents like unplanned shutdown were also being inevitable operation constraints.
Due to the above mentioned various disorders, there were only 14 PSC Oil Contractors that
could meet the targeted state budget, namely: Kodeco, Santos (Sampang), Vico, Medco
(Tarakan), JOB Pertamina - PetroChina (Salawati), JOB Pertamina - Talisman OK, ExxonMobil
Oil Ind., Chevron Indonesia, ConocoPhillips, JOB Pertamina, PetroChina East Java, PHE ONWJ,
Pertamina, Total E & P Indonesie and PT CPI. To date, the actual oil and condensate production
recorded 945 thousand BOPD in 2010 or 97.9% of the targeted state budget of 965 thousand
BOPD.
14,043 BOPD57.8%
2,496BOPD9.6%
4,156 BOPD16%
80BOPD0.3%
4,130 BOPD14.4%
481 BOPD1.9%
25,946 BOPD100%
1 12 1 71 1
282196
UnplannedShutdown
Project Involvement
Offtaker New Project Below Surface
Extension of Shutdown
Total
Seleraya& KEI
JOBP - Tallsman(Jambi-Merang)
CNOOC
Produk tidak terealisasi Frekuensi
Pecahpipa TGI
7000BOPD
REALIZATION OF OIL AND GAS PRODUCTION
BPMIGAS Annual Report 2010
Realization of Upstream Oil and Gas in 2010
21 22
NATURAL GAS
Apart from the ongoing Tangguh project managed by BP Indonesia, the national gas production
have also been contributed by the fields operated by Total E&P Indonesie in East Kalimantan,
Pertamina EP in regions I, II and III, PHE, ConocoPhillips in Sumatra and Natuna, Vico Indonesia in
East Kalimantan and other fields by Exxon Mobil in Aceh, Petrochina Jabung in Jambi, and Kodeco
Energy.
During the past recent years, realization of natural gas production has been gradually
increasing and in 2010 was realized at the highest level throughout the Indonesian oil and gas
history, that was equal to 8,857 MMSCFD or 11% increase from year 2009 production which
amounted to 7,962 MMSCFD. The increase in production was achieved after completion of
Indonesia’s Tangguh project in Papua.
2003 2004 2005 2006 2007 2008 2009 2010
4
2
0
-2
-4
-6
-8
-10
-12
-14
Pro
duk
si M
inya
k
Penurunan (%)
Kenaikan(%)
Out of those various efforts being carried out so far, the production decline rate could be
reduced from 8.4% in 2003 to only 0.43% in 2010.
Throughout 2010, we experienced a relatively low gas production facility disorder considering
that our natural gas production facilities that are still relatively new. The occurring production
decrease mostly due to non-operational factors such as maintenance activities, equipment
replacement and decrease of consumer demand.
PRODUCTION AND DISTRIBUTION OF GAS IN 2010 - [MMSCFD]
REDUCTION RATE OF PRODUCTION
NATIONAL GAS PRODUCTION
9,600
9,200
8,800
8,400
8,000
7,600
7,200
6,800
6,400
6,000
Produksi
Penyaluran
Lifting APBN = 7,758 MMSCFD
Jan Feb Mar Apr Mei Jun Jul Agt Sep Okt Nov Des
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
-2000 2001 2002 2003 2004 2005 2006 2007
Gas
2009 2010
M
M
S
C
F
D
2008
PETROLEUM PRODUCTION DECLINE RATE INITIATIVES
Most of the national petroleum production generated by the old O&G fields that have
experienced natural production decline of about 7-12% per year. To push down the overall
natural production decline rate, various efforts have been realized such as through
intensification initiatives (among others were to increase seismic and EOR activities) as well
as business expansion efforts by proposing new blocks to the O&G Directorate General.
Utilization of gas to
meet domestic needs
BPMIGAS Annual Report 2010
Realization of Upstream Oil and Gas in 2010
2423
PETROLEUM AND NATURAL GAS LIFTING05
Realization of petroleum lifting in 2010 was 954 thousand BOPD. This achievement was
98.9% of the target set by the Government and the House of Representatives in the 2010
State Budget amounting to 965 thousand BOPD. Realization of petroleum lifting was higher
than production due to the usage of stocks from previous year.
PETROLEUM LIFTING
In the meantime, natural gas lifting increased by 11% to 7,681 BBTUD in 2010 from 6,943 BBTUD
in year 2009. This increase in lifting is aligned with the increase in natural gas production
throughout 2010.
Natural gas lifting is utilized to meet both domestic and export needs. In 2010, there was
an increase in export, which was due to the start of production of LNG Tangguh Refinery in
Papua specifically dedicated for export.
NATURAL GAS LIFTING
06STATE REVENUE AND COST RECOVERY
US$ 26.49 billion of
state revenue or 32.78%
increase compared to
state revenue in 2009
2.27 million BOEPD
oil and gas lifting
or increase by
11.7% from lifting
realization in 2009
Upstream oil and gas industries are among the main sectors that stimulate Indonesia’s
economic growth. In 2010, state revenue from oil and gas sectors amounted to US$26,489
billion or an increase by 32.78% compared to revenue in 2009 which was US$19,950 billion.
The above realization of state revenue in 2010 also reached beyond the state budget in 2010
which was US$26,060 billion. The main contributing factor for this achievement in state
revenue was the realization of a lower cost recovery from the state budget target.
The above State Revenue is exclusive of potential state revenue derived from indirect taxes
such as Land and Property Tax, VAT, Local Tax, and Income Tax of employees working in
upstream oil and gas industries which all amounts to Rp26.9 trillion.
STATE REVENUE YEAR 2005-2011
60
50
40
30
20
10
Mili
ar U
S$
2005 2006 2007 2008 2009 2010
Gross Revenue
Cost Recovery
Indonesian Share
Net Contractor Share
DEVELOPMENT OF INDIRECT TAXES FROM OIL AND GAS INDUSTRIES IN 2006-2010
2006 2007 2008 2009 2010
30,000
25,000
20,000
15,000
10,000
5,000
0
Value Added Tax
Property TaxM
iliar
Ru
pia
h
Production (BOPD) Lifting (BOPD) Total Stock (BBL)
1.100
1.000
900
800
700
600
500JAN FEB MAR APR MEI JUN JUL AGU SEP OKT NOV DES
16
13
10
7
4
1
- 2Pro
duk
si /
Lift
ing
(rib
u B
OP
D)
Sto
k B
BL
(juta
)
PETROLEUM LIFTING AND SUPPLY
For the last decade of state revenue, upstream oil and gas industries have contributed
20% to 30% of the total state revenue. As a business entity, for the period of 2005 to 2010,
upstream oil and gas industries have consistently shown an average of above 400% Revenue
to Cost Ratio. This means that every US$1 paid as a cost can generate at least US$4. This
condition shows that cost recovery paid from oil and gas proceeds is able to boost higher
state revenue. Realization of cost recovery in 2010 amounted to US$12 billion, 1.5% below the
state budget target which was US$12.2 billion.
REALIZATION OF NATURAL GAS LIFTING5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
-
Export Domestik
20062005
Tangguh 710 BBTUD
20042003 2007 2008 2009 2010
BB
TUD
BPMIGAS Annual Report 2010
Realization of Upstream Oil and Gas in 2010
2625
07INVESTMENT REALIZATION
Investment in upstream oil and gas industries within the past 5 (five) years demonstrated
a highly positive development, which was shown by the high amount of expenditures. Total
expenditures disbursed in the period of 2006-2010 reached US$54.42 billion. At least 20%
from the above mentioned value was invested in capital expenditures, which was a guarantee
for the sustainability of oil and gas production level in Indonesia. The aforementioned Capital
Expenditures are addition of state assets in the oil and gas industries.
Compared to the investment done by industries from other sectors, investment in upstream
oil and gas industries is the biggest. Its role in increasing Gross Domestic Product (GDP) and
economic growth is highly significant, hence the positive trend in investing in upstream oil
and gas industries must be maintained through a favorable investment policy.
Throughout 2010, there were still several challenges that hindered the realization of
investment in upstream oil and gas. Most of the challenges emerged as a result of the
issuance of a regulation that did not suit the situation and condition of Indonesia’s upstream
oil and gas industries nor correspond with existing regulations.
The result of such overlapping of regulations is rather substantial for the realization of
investment, as upstream oil and gas industries demanded clarity in regulations for better
assurance in investment, bearing in mind that the total amount invested is reasonably high.
Several new regulations have proven to be directly disruptive of the production process as
PSC Contractor was charged to add cost that was relatively high in a fairly short time.
Legislation No. 17 year 2008 regarding Shipping required effective implementation of
cabotage principle by year 2011, at the latest, for all types of vessels operating in Indonesian
sea. Those issues emerged due to the fact that the use of vessels in upstream oil and gas
industries are being mandatory requirement such as seismic, well drilling and maintenance.
Up to today, no single national company is able to provide what is being required as we need
several years time to build it.
REALIZATION OF UPSTREAM OIL AND GAS INVESTMENT
*) As of 22 February 2011, the 2010 data was still considered provisional
Capital Non Capital
2006 2007 2008 2009 2010
14
12
10
8
6
4
2
Juta
US
$
INVESTMENT CHALLENGES
The reinforcement of regulation without considering the vessels’ duties and functions,
have caused operational disruptions to occur rather significantly. For instance there were
several drilling vessels that have completed their contract period, yet they must immediately
leave Indonesian water although they have not yet completed their activities. Several PSC
Contractors also faced difficulties in leasing seismic vessels used for drilling purpose in 2011,
as domestic companies are not yet able to provide the vessels as required.
Government Regulations No 79 year 2010 regarding Reimbursable Operational Cost and
Enforcement on Income Tax in Upstream Oil and Gas Business Sector. Although this regulation
provides several legal assurances in taxation (enforcement on provisions of lex specialist
for PSC Contractor exploration) and provides more flexibility in the usage of cost recovery
without restriction (capping), however, investors view that the regulation still contains
provisions that dishonor the sanctity of contract.
Law No 26 year 2007 regarding Spatial Organization. Based on the aforementioned Law, Local
Governments are authorized to organize their respective regional spaces. However in the
establishment of Regional Spatial Plan, activities from upstream oil and gas sector are often
disregarded as they are not viewed as vital national objects. Their presence have only been
considered as regular projects by private companies.
Law No 32 year 2009 regarding the Environment. Enforcement of this Law has created issues
for upstream oil and gas operations when a ministerial regulation, Ministerial Regulation No.04
year 2007 being issued. The problem mainly lied in Article 2 Appendix I, which stated that
waste water quality standard/reproduced water can only be disposed to the environment if
its temperature is already below 40 degrees Celsius. Meanwhile other industries including
geothermal/oil refinery/LNG refinery/LPG refinery are still allowed to dispose with maximum
temperature of 45 degrees Celsius. As a result of such change, existing production
equipment must be renovated, hence relevant PSC Contractor must provide additional cost
and time for procurement of equipment. Eventually this regulation created a burden for the
PSC Contractors, however, the problems can be overcome by means of a policy allowing
additional time for contractors to renovate their equipment.
There are still some local regulations that conflict with the central government’s regulations,
therefore, burdening the implementation of activities in upstream oil and gas at regional level.
Overlapping of land for upstream oil and gas and other activities. The issue of land acquisition
to support upstream oil and gas activities is one of the main disruptions that caused
investment plan not being able to be implemented in 2010. To settle this issue, several steps
have been undertaken by BPMIGAS, for instance by coordinating with the Minister of Forestry
(for cases on land acquisition that intersect with forestry zone), coordinating with National
Land Registry and establishing an ad hoc team to directly assist PSC Contractors team
in acquiring land from the community. This last method has proven to be effective when
assisting the process of land acquisition for MCL project in Cepu.
PELAKSANAAN PROYEK HULU MINYAK DAN GAS BUMI
2
BPMIGAS Annual Report 2010 28 30
ONSHORE PROJETCS IMPLEMENTATION
FULL SCALE DEVELOPMENT OF BANYU URIP FIELDA
01
Several upstream oil and natural gas projects that were
implemented in 2010 are categorized as main projects. This
classification takes into account the investment value needed
to implement the projects, the output that will be produced by
such projects or supporting state-of-the-art technology that
will be used. Some parts of the projects are located offshore
and some are onshore. BPMIGAS and PSC Contractor strive
to ensure that the projects can be implemented on time to
achieve the target for oil and natural gas production.
The development of Banyu Urip Field at the Cepu Block Onshore working area was conducted
by Mobil Cepu Limited (MCL). The construction of the project was divided into 2 (two) phases,
namely early production facilities and full-scale construction. The target for early production
stage was for petroleum production to reach approximately 20 thousand BOPD by the end
of 2009, while the target for full-scale phase was the production of approximately 165
thousand BOPD by the end of 2013.
The early production stage was completed on 31 August 2009 with an estimated production
level of 1,700 BOPD. Production could then be increased gradually so that throughout 2010
the project has produced an average production of 18,500 BOPD.
Meanwhile, in order to support the realization of full-scale projects, throughout 2010 BPMIGAS
approved the project procurement plan, namely procurement of production facilities
(Engineering Procurement Construction/EPC-1), provision of pipes on land (EPC-2), provision
of pipes at sea (EPC-3), provision of floating storage and offloading (EPC- 4) and provision for
supporting infrastructure (EPC-5). At the end of 2010, tender process for the five EPCs was
underway and the auction winner is scheduled to be announced in early April 2011.
Procurement of a 700-hectare land to support the project implementation has also increased
considerably compared to previous years. This achievement was the result of intensive
cooperation between BPMIGAS team and the District Land Office of Tuban and Bojonegoro in
processing the letters and map areas of the acquired land.
At the end of 2010, land acquisition for the Central Field Facilities (CFF) has reached 73%
and land acquisition for Right of Way (ROW)/onshore pipeline was able to be completed
approximately 84%. Meanwhile land for infrastructure facilities (EPC-5) of 204 hectares had
been 100% acquired with assistance from locally-owned enterprise in Bojonegoro District.
All payments and signing of the Deed of Release of Land Rights is equipped with supporting
documents.
BPMIGAS Annual Report 2010 3231
Pelaksanaan Proyek Hulu Minyak dan Gas Bumi
DEVELOPMENT OF JAMBI MERANG PROJECT
DEVELOPMENT OF BETARA BCD-4 PROJECT
B
C
Construction of Jambi Merang Project in South Sumatra was implemented by JOB Pertamina -
Talisman Jambi Merang. Implementation of the project which included 2 (two) fields, namely
Pulau Gading and Sungai Kenawang was expected to yield 120 BBTUD of natural gas and
12,500 BOEPD of condensate. The natural gas will be partly used to support operational
needs of Duri Field managed by Chevron Pacific Indonesia (CPI) for steam flood purposes in
order for Duri Field’s production target to be achieved. Meanwhile the rest of the natural gas
will be used to meet the needs of industries in West Java.
Approximately US$464.4 million investment was needed to implement the project, which
among others was utilised for:
Building natural gas production facilities in Pulau Gading in the form of separator
facility with a capacity of 95 MMSCFD (feed gas).
Building Central Gas Production Facilities in Kenawang River in the form of
separator and natural gas purification facilities, as well as Condensate Recovery
with a capacity of 155 MMSCFD.
Installation of natural gas distribution pipeline from Kenawang River Gas Plant to
pipelines operated by PT Transportation Gas Indonesia (TGI), along 14 km in order
for natural gas to be streamed to Duri Field, PKB PDPE Batam and South Sumatra.
Installation of distribution pipelines for natural gas and condensate from Pulau
Gading to Kenawang River Gas Plant along 11.5 km as well as condensate distribution
pipelines from Kenawang River Gas Plant to North Geragai Facilites (usage of shared
facilities with PetroChina Jabung) along 110 km.
Until the end of 2010 the construction of Kenawang River Central Gas Production Facilities
and Pulau Gading Gas Production Facilities has reached 99.2%, pipe-connecting (tiein) to
North Geragai Facilities reached 77.1% and tie-in to the TGI gas pipeline reached 20.8%.The
entire project is scheduled for completion by the first semester of 2011.
Betara Project in Jambi Province was implemented by PetroChina International Jabung Ltd.
BCD-4 Project is a continuation of the Betara Field development project with a view to benefit
from burned natural gas (flaring) from associated Betara South West Area and West Betara
as well as construction of petroleum pipeline with a capacity of 9300 BOPD. The construction
of pipeline was done to substitute transporting of petroleum that has been done by truck
(temporary trucking). The works include compressor installation, flowlines and gathering
system for wells and installation of vapor recovery system.
At the end of December 2010 the implementation of the project reached 95.34% and was
expected to be completed in the second quarter of 2011. Investment for the construction of
the BCD-4 production facilities is estimated at US$122.5 thousand.
SINGA FIELD DEVELOPMENT
NORTH DURI DEVELOPMENT (NDD) AREA-12
D
E
Development and construction project of the Central Processing Plant (CPP) Singa Field,
which was conducted by Medco E & P Lematang, was located in South Sumatra Province.
Projects were undertaken to support the production of Singa-1 Field, Singa-3 and Singa-4
that were expected to produce approximately 50 MMSCFD of natural gas. Based on the sales
agreement that has already been signed, natural gas will be used by PT Perusahaan Gas
Negara (PGN).
Construction work had commenced in January 2008 and was completed at the end of 2010
as it has produced approximately 30 MMSCFD of natural gas from Singa-3 Well. Overall
completion of the project was delayed from its original plan, which was December 2009. This
was due to the delay in completion of Singa-1 and Singa-4 wells’ drillings, hence the supply
of natural gas for commissioning activities could not be undertaken.
North Duri Field is located in Riau Province and is operated by PT Chevron Pacific Indonesia (PT
CPI). With a view to maintain and increase field production, Area-12 was developed in 2010,
which was also part of the development of Area-13 and Area-14. Area-12 has commenced
production since 2008. The development of this area is expected to produce approximately
34 thousand BOPD in 2011.
The scope of work carried out as part of NDD Area-12’s development activities included
building a test station, CVC (Casing Vapor Collection), Degassin, piping systems, electrical
and instrumentation as well as construction of Area-12 main road to facilitate mobilization
to the field. Investments that were reserved for this project was approximately US$207.7
million, while the estimated cost of the project to completion was approximately US$168.4
million.
At the end of 2010, completion of the project has reached 99.2%. Finalization of work
includes performance improvement of supporting facilities that are unrelated to the main
facility.
BPMIGAS Annual Report 2010 3433
Pelaksanaan Proyek Hulu Minyak dan Gas Bumi
MINAS SURFACTANT FIELD TRIAL 2 F
Projects implemented in Minas Field by PT CPI is a study to gather information needed for
implementation of a large scale Enhanced Oil Recovery (EOR) program. To assist the process
of extracting natural oil from Minas Field, PT CPI currently uses water flooding technology,
which is by injecting hot water into the reservoir so that the oil is pushed to the surface.
However, such technology has not been able to lift the entire oil from the reservoir. Minas
Field is estimated to still contain petroleum of more than 4 (four) billion barrels which can
not be recovered by means of water flooding. The application of surfactant technology/EOR
polymer (chemical) is expected to assist the extraction of 841 million barrels of petroleum.
Investment cost for this project is estimated to be US$157.3 million, which will be used for
the construction of production facilities, wells drilling, procurement of chemical substances
and project management. For pilot project purpose, the ongoing development wells included
chemical injection wells, production wells, monitor wells, S-sand injection well and coring
wells.
Until the end of 2010, implementation of the overall project has reached 66.2%, and it is
expected that the first injection activities can be done at the end of March 2012.
DEVELOPMENT OF SOUTH SEMBAKUNG NATURAL GAS FIELD
G
Development of South Sembakung Field, which is located in Simenggaris Onshore Block in
the northern part of East Kalimantan Province, is conducted by JOB Pertamina Medco Pty
Simenggaris. Ltd. Based on the Plan of Development (POD) approved by BPMIGAS, the project
cost is approximately US$22 million.
Field construction is done through the installation of pipes and gas manifold to distribute
production from wells with a production of 25 MMSCFD, headed for Methanol Bunyu Refinery
(KMB), which will be built by Pertagas - Medco Gas Consortium.
Production activities are scheduled to be carried out in December 2011. In late 2010, the
progress of the project has reached 10.03%, which is in line with the set target.
IDD Project is a development of 5 (five) natural gas fields in Makassar’s deep water (between
975 m - 1785 m) in 4 (four) working areas, namely Ganal, Rapak, Makassar Strait and Bakau
Estuary. The fields that were developed include Gendalo, Maha, Gandang, Gehem and
Bangka Fields. Gendalo Field is a unitization between Ganal working areas and Makassar
Strait; Maha Field is a unitization between Ganal working area, Makassar Strait and Bakau
Estuary, while Gehem Field is the unitization between Ganal working area and Rapak and
Bangka Field in Rapak Working Area. The operator for this PSC unitization implementation is
Chevron Indonesia Company (CICo).
These fields’ development has been done in an integrated manner to meet the domestic
and export needs for natural gas. The natural gas allocated for export would be initially
processed into LNG at the LNG Bontang Refinery, which is also located in East Kalimantan.
The project scope consisted of wells drilling and construction of production facilities. The
production facilities that will be developed are: subsea flowline will be built in Bangka Field
from the wells headed to the West Seno Floating Production Unit (FPU) (existing); FPU,
subsea completion and production pipeline will be built at Gehem Field headed to Santan
Terminal. Meanwhile, some facilities will be built in Gendalo Field that is also utlized as a Hub;
those facilities include FPU, subsea completion and production pipeline headed to Santan
Terminal.
It is scheduled that in the 3rd (third) quarter of 2014, the delivery of 120 MMSCFD of natural
gas and condensate of 2,880 BOPD to consumers will begin from Bangka Field. Production
will be increased gradually, therefore by 2017 natural gas production will reach its peak of
924 MMSCFD and condensates will amount to 23 thousand BOPD. Afterwards, the production
will decline until it reaches economic limit in 2028.
Investment for the development of IDD Project is estimated to cost US$6.98 billion, which
will be used to finance drilling and construction of production facilities. In the meantime to
reduce the environmental impact resulted from the activities, CICo has also prepared the EIA
Terms of Reference, which is expected to be approved by the Ministry of Environment by the
end of 2011.
OFFSHORE PROJECTS IMPLEMENTATION
INDONESIAN DEEPWATER DEVELOPMENT (IDD)A
02
BPMIGAS Annual Report 2010 3635
Pelaksanaan Proyek Hulu Minyak dan Gas Bumi
Abadi Natural Gas Field was discovered in December 2000 through drilling of Abadi # 1
exploration well at Masela Block operated by INPEX. Abadi Field is located in West Southeast
Maluku District (MTB), in the Arafura Sea, located approximately 350 km east of Timor Island
with depth of sea ranging between 400-700 meters.
The Government (Minister of Energy and Mineral Resources) has issued approval of the First
POD for Abadi Field Masela Block on 6 December 2010. The project was developed by using
Floating LNG with a capacity of 2.5 MTPA.
The first phase of field construction was designed with an estimated investment cost of
US$4.99 billion and an operational cost of US$4.01 billion. Natural gas production is expected
to be achieved in 2016 with an average production of 355 MMSCFD for 30 years. The initial
production of 7,106 BOPD condensate will be increased gradually to 8,194 BOPD between
year 2020 to 2041 period. After the above period, production is expected to decline until year
2049.
DEVELOPMENT OF ABADI MASELA GAS FIELD B
DEVELOPMENT OF APN E AND APN F GAS FIELDSC
APN E and APN F Gas Fields are located in the Offshore North West Java working area
operated by Pertamina Hulu Energy Offshore Northwest Java Ltd (PHE ONWJ). Investment
being allocated for the construction of production facilities for this development project is
estimated to cost US$97.26 million.
The development of APN E/F Gas Fields was done to increase gas production in order to meet
the increase in consumer demand, for example, to meet the needs of Pupuk Kujang. The
entire project construction is scheduled to be completed by December 2011.
DEVELOPMENT OF GAJAH BARU-NATUNA SEA BLOCK A FIELD
D
Gajah Baru Field is located in the southern part of Natuna Sea Block A working area, operated
by Premier Oil Natuna Sea B.V. (PONSBV). The development of this field is based on the POD
approval for Gajah Baru, Iguana and Naga Fields on 14 April 2008 with a total investment cost
for the production facilities of US$873 million. In addition, particularly for Gajah Baru Field
development, an investment of US$418 million will be used for Central Processing Platform
(CPP), Wellhead Platform (WP), pipeline and Onshore Receiving Facilities (ORF).
Gajah Baru Field is developed to meet the commitment of providing natural gas to domestic
consumers in Batam area, which are PT PLN and PT UBE as well as foreign consumer, namely
Sembgas (Singapore). Year 2011 is the year we are committed to deliver natural gas from
Gajah Baru Field. At the end of 2010, development of the project had reached 74.7%.
Tunu Field is a giant field with a length of approximately 75 km and an estimated width of 18
km on the banks of the Mahakam Delta, East Kalimantan. Tunu Field is operated by Total E&P
Indonesie (TEPI) based on the Mahakam Production Sharing Contract (TEPI and INPEX, each
holds 50% shares). This field supplies LNG Bontang Refinery’s natural gas needs (for further
export) and for domestic consumers, such as PT Pupuk Kaltim and PLN.
Development of Tunu Field was carried out in phases. During 2010, development activities
were conducted at Tunu Project Phase 11, Tunu Project Phase 12 and Tunu Project Phase 13A.
TUNU PHASE 11
The development of Tunu Phase 11 is the construction of compression facilities, manifolds
and utilities so that the level of natural gas production from the Tunu South and Tunu North
wells can still be maintained. This project was carried out due to natural decline in wellhead
pressure from 30 barg to 10 barg (Low Pressure). Through the construction of this facility,
natural gas production could be increased back amounting to 200-250 MMSCFD. The
entire project was successfully be completed in late June 2010 with a total investment of
approximately US$554 million.
TUNU PHASE 12
Tunu Phase 12 Facility is a Gathering Testing Satellite (GTS) & Wellhead Platform (WHP)
facilities to accommodate additional wells in an effort to increase production of 405 MMSCFD.
The project was completed in late April 2010 with a total investment of approximately US$108
million, thus several wells had also been successfully produced. Meanwhile, well drillings
have been done in phases, in accordance with the design that has been created.
TUNU PHASE 13A
The development of Tunu Phase 13A is a project for the development of Gathering Testing
Satellite (GTS) & Wellhead Platform (WHP) facilities to accommodate additional wells in an
effort to increase production to 270 MMSCFD.
The entire project was completed in early June 2010 with an estimated total investment
of US$103 million. The gas production generated from several wells is flowed through the
existing trunkline pipes. To date, well drilling activities have been carried out in stages in the
existing designated WHPs.
TUNU FIELD DEVELOPMENTE
BPMIGAS Annual Report 2010 3837
Pelaksanaan Proyek Hulu Minyak dan Gas Bumi
Peciko Field is located 25 km southeast of Senipah, East Kalimantan, operated by Total E&P
Indonesie (TEPI) based on the Mahakam Production Sharing Contract (TEPI: 50% and INPEX:
50%). The entire production in Peciko Field is distributed to Onshore Processing Central
Senipah to be further processed (after segregation and treatment are done) in order to meet
the specifications required for natural gas, petroleum/condensate and waste water.
The Peciko Field development project, which was implemented in 2010, consisted of Peciko
Phase 6 LP Compression Project and Peciko Phase 7A Project.
PECIKO PHASE 6 LP COMPRESSION
Peciko Phase 6 LP Compression Facility Project is a compression facility development in
anticipation of a natural decline from 30 barg to 12 barg (Low Pressure) in wellhead pressure
in Peciko Field, so it is expected that gas production from the field can be maintained at 333
MMSCFD in 2015.
The entire project was completed in early May 2010 with an investment of approximately
US$178 million. With this project, wells in Peciko Field that are already in a state of low
pressure can now be compressed in LP Compression train.
PECIKO PHASE 7A
Peciko Phase 7A Project is an additional extension platform conducted in several existing
platforms in Peciko Field to accommodate additional wells in an effort to increase production
to 85 MMSCFD in 2010 and 156 MMSCFD in 2011.
Total investment of Peciko Phase 7A Project amounted to US$46.56 thousand. It is expected
that the project is due for completion in November 2011. In December 2010 the project has
achieved 86.78%.
PECIKO FIELD DEVELOPMENT F
South Mahakam Field is located 58 km southwest of Peciko Field or 100 km from Senipah,
East Kalimantan. South Mahakam Field is operated by Total E&P Indonesie (TEPI) based on
the Mahakam Production Sharing Contract (TEPI: 50% and INPEX: 50%) that is received by
the entire production of South Mahakam Field which is then flowed to Onshore Processing
Central in Senipah, for separation and treatment processes, before natural gas is delivered
to Bontang. The South Mahakam Field development project was implemented to support the
development of South Mahakam Field Phase 1 & 2 in order to be able to produce 128 MMSCFD
of natural gas and 5,900 BOPD of condensate by 2012.
Total investment for the production facilities’ construction of South Mahakam Phase 1 and
Phase 2 amounted to US$382.59 thousand. At the end of 2010, the project has reached
16.26% progress and it is estimated that the project can be completed in the first
quarter of 2012.
SOUTH MAHAKAM FIELD DEVELOPMENT G
Image L10.
Peciko Phase 7A Extension
Platform
DEEPENING UNDERWATER GAS PIPELINE (PGBA) 16” PROJECT KODECO ENERGY
H
Kodeco Energy’s 16” gas pipeline distributes natural gas from Poleng Processing Platform
(PPP) to the Onshore Receiving Facility (ORF). This gas pipeline was built to support the
Gas Expansion Project Phase 2 by Kodeco Energy, which started operation in June 2009.
The PGBA lays across the West Surabaya Shipping Lane (APBS) in 2 (two) points, namely
kilometer point (KP) KP 35-36 and KP 44-46 with depth of 16 meters Low Water Spring (LWS).
In anticipating any disruption occured along the shipping lanes, Kodeco buried those pipes
reaching -19 meters LWS. The burial began on 19 October 2010 and is due for completion on 17
February 2011. The target completion of this project is worth US$17 million, which may likely
be delayed due to extreme weather conditions.
DONGGI SENORO PROJECT DEVELOPMENT
Senoro Field and Matindok Area operated by PSC Contractor JOB Pertamina-Medco (Tomori)
were initially discovered in 1988. These fields are targeted to begin production by 2014, with
an average production capacity at approximately 415 MMSCFD.
Natural gas supply is allocated to meet the needs of PLN (approximately 25 MMSCFD), PT
Panca Amara Utama (PAU) fertilizer plant (approximately 55 MMSCFD) and to be processed
into LNG at Donggi Senoro LNG refinery (approximately 335 MMSCFD).
At the end of 2010, BPMIGAS has signed Seller Apointment Agreement (SAA) concerning gas
allocation concept and the DMO, along with the approval of the GSA signing.
NATIONAL CAPACITY EMPOWERMENT & K3LL
DOMESTIC COMPONENT USAGE INCREASED BY 14%
JOINT PROCUREMENT SAVINGS INCREAS BY 111%
OPTIMILIZATION OF ASSETS UTILIZATION INCREASED BY 27%
TRANSACTION THROUGH STATE OWNED BANK INCREASED BY 18%
ASR FUND SAVINGS INCREASED BY 27%
3
BPMIGAS Annual Report 2010 4241
National Capacity Empowerment & K3LL
01UTILIZATION OF DOMESTIC GOODS AND SERVICES
The utilization of domestic goods and services in the upstream oil and gas activities
significantly increased in 2010 compared to 2009 both by volume as well as percentage.
The improvement was the result of BPMIGAS’ efforts in improving the PSC contractors’
commitment to maximize the use of domestic goods and services.
As an illustration, the value of domestic goods and services procurement in 2010 was
US$6.84 billion or 63.43% of the total procurement value of US$10.79 billion. PSC Contractors’
actual domestic expenditure, 71.9% of which was dominated by procurement expenditure. It
is indicated that the national supporting of upstream oil and gas service company posseses
great opportunity to develop its capability and competitiveness.
In order to encourage the use of domestic goods and services component, BPMIGAS regulates
the procurement of goods and services that can only be conducted by national companies
or foreign companies that have collaborated with domestic suppliers of goods and services.
The regulation has proven to be effective in protecting national interests, despite the fact
that BPMIGAS provides ample authorizations to PSC Contractors in terms of procurement
agreement from US$2 million to US$5 million.
PROCUREMENT OF GOODS / SERVICES - SAVING EFFORTS
Since mid-2008, BPMIGAS has continually improved its cost-efficient upstream oil and gas
operation through a well coordinated collaboration between the procurement function among
PSC Contractors. Such colaboration was initiated by the Supply Chain Management (SCM)
Forum. The procurement cooperation manifested through joint procurement contract such
as rig leasing, transportation infrastructures (land, sea and air), joint procurement of spare
parts of heavy equipment and machines with similar brands, joint use of shorebase facilities
and other operational support facilities as well as utilization of excess goods required by
PSC Contractors. The procurement cooperation is likely to have been carried out particularly
for PSC Contractors who have adjacent working area with similar operational characteristic.
As a result, BPMIGAS managed to save US$70.19 million through joint procurement in 2010 or
increased by 111% compared to the saving outlined in 2009 amounted at US$33.20 million.
The improvement was subsequently the outcome of more active participation from PSC
Contractors in the SCM Forum. Moreover, the savings made through joint procurement can
also be acquired from material transfer valued at US$34.80 million which rose 27% compared
to 2009 of US$27.50 million. The savings made by material transfer have indicated how
effective assets management as a result of excess materials, idle assets and used materials
utilized by the PSC Contractors through material transfer method.
PROCUREMENT COST SAVING AND ASSET OPTIMIZATION 2010
COLLABORATIVE PROCUREMENT SAVING JOB ASSET OPTIMIZATION
Target Realization Target Realization
2009 2009
40% 39%
2010 2010
80
70
60
50
40
30
20
10
0
40
35
30
25
20
15
10
0
} }
NILAI PENGADAAN DAN TKDN
Service Product
2006
43%
2007
54%
2008
43%
2009
49%
2010
63%
12,000
10,000
8,000
6,000
4,000
2,000
0
%TKDN
100%90%80%70%60%50%40%30%20%10%0%
Juta
Us$
US
$ Ju
ta
US
$ Ju
ta
Around 63% of
the upstream oil
and gas products’
and services’
procurement value
was generated
domestically. Effective saving
efforts in managing
the upstream oil and
gas materials have
resulted in cost-
effecient operations
valued at US$104.99
million
BPMIGAS Annual Report 2010 4443
National Capacity Empowerment & K3LL
02 03ASSET MANAGEMENT UTILIZATION OF NATIONAL BANKING IN 2009
2009
At the end of 2010, the total assets used to support the upstream oil and gas operational
activities was US$6.09 billion of the total acquisition of US$31.23 billion. The value of this
acquisition was multiplied by 4.4% compared to the acqusition value at the end of 2009 of
US$27.01 billion.
During the five (5) years period, the upstream oil and gas assets have raised national assets
at the average of 9% per-year.
In order to protect assets from non-operational and operational risks, all assets are insured.
The process of insurance coverage is done through national insurance company underwriter,
which automatically become members of the consortium of the major underwriter. Such
approach is to empower domestic insurance company as well as to enhance retention
covers by national insurance company.
In 2010, cost of premium coverage paid for the upstream oil & gas was US$29.78 million or
decreased by 21% compared to premium coverage that had been paid in 2009 for the amount
of US$37.95 million.
Cost of premium reduction in 2010 was an achievement for BPMIGAS as it had been
supporting insurance closure for the last three years since 2009. Consequently, the amount
of premium paid by the Indonesian upstream oil and gas industry was not influenced by the
tendency of the world’s increased insurance coverage occurred in 2010 due to major work
incidents in the petroleum activities (particularly the recent oil spill incident in BP operational
area at the Mexican Gulf) as well as some of the natural disasters within that year.
TRANSACTION FOR GOODS AND SERVICES PROCUREMENT
Since 2009, BPMIGAS started to compel PSC Contractors to utilize national banks service to
support their procurement of goods and services. This policy was applied with the intention
to provide upstream oil and gas industry a maximum benefit for the country, among others
the raising circulation of money in national banks and enhancing national banks’ ability to
support financing upstream oil and gas business.
Since the enactment of the policy, transaction value through national banking system
began to expand. In 2009, procurement transaction through national banks was amounted
to US$3.93 billion (or around Rp35.4 trillion). In 2010, the transaction multiplied to US$4.63
billion (or Rp41 trillion) or increased by 18%. Thoroughly, since 2009, national banks have been
coping with procurement transaction of upstream oil and gas for the amount of US$8.56
billion or Rp77 trillion.
UTILIZATION OF NATIONAL BANK SERVICE IN PSC CONTRACTOR PROCUREMENT
OIL AND GAS INDUSTRY ASSET VALUE
35
30
25
20
15
10
5
-
Yield Value
Accumulated Depreciation
Book Value
2006 2007 2008 2009 2010
Mandiri US$2.63 miliar
BNI US$419.69 juta
BRI US$63.35 juta
Syariah Mandiri US$291.30 juta
Mandiri / BNI US$522.35 juta67%
11%
2%
7%
13%
79%
2010
Mandiri US$3.65 miliar
BNI US$737.91 juta
BRI US$166.27 juta
Syariah Mandiri US$68.76 juta
16%
4%
79%
1%
Mili
ar U
S$ National banking
sector was
strengthened to
support the oil and
gas activity.
BPMIGAS Annual Report 2010 4645
National Capacity Empowerment & K3LL
PLACEMENT OF ABANDONMENT AND SITE RESTORATION FUNDS
Abandonment and Site Restoration (ASR) Funds are the amount of funds that PSC Contractors
should reserve in order to permanently suspend the operational of production facilities as
well as the other supporting facilities and eliminate its ability to be reactivated as well as to
perform environmental restoration in the upstream oil and gas operational area.
In 2009 BPMIGAS directed ASR fundraising through a joint account between BPMIGAS and
the PSC Contractors in the national banking system. Of this policy, the amount of ASR Funds
that were stored in the national banks had increased. In 2009, the ASR fund reached US$132
million and rose 27% to US$167 million in 2010.
Efforts to involve national banks in the activities of upstream oil and gas industry both to save
the ASR funds or procurement transaction of goods and services were aimed to improve the
quality of national banking liquidity to be able to play an active role in credit distribution, both
in credit investment and working capital particularly for the oil and gas industry as well as
the entire real sector.
Opportunity to obtain credit loans from the banks in the oil & gas sector is still widely open.
Based on Bank Indonesia record, from 2003 – 2009, loans that were given by the national
banks to the mining sector (including upstream oil and gas sector) was only 3.8% for credit
investment and 2% for working capital loans (Bank Indonesia, 2009).
TENAGA KERJA
Number of Indonesian workers (TKI) and foreign workers (TKA) in the upstream oil and gas
industry greatly depends on the number and type of activities performed during the year.
Accumulatively, number of workers in the PSC Exploration and Production Contractors
shrinked by 1.6% in 2010.
The numbers of PSC Exploration Contractors were down by 29.4% compared to 2009. As for
the details, number of Indonesian workers had dropped from 2,233 workers to 1,601 workers,
whilst foreign workers had dropped from 252 workers to 152 workers.
Meanwhile, for PSC Production Contractor, the number of employment rose to 1.5% compared
to 2009. As for the details, numbers of Indonesian workers increased from 21,520 workers to
21,727 workers, whilst foreign workers also rose from 649 workers to 776 workers.
The increase in employment numbers at PSC Production Contractors has been identified
since 2009, following the improvement in three major upstream oil and gas projects activities,
namely Cepu Block development by Mobil Cepu Ltd, Indonesia Deepwater Development (IDD)
by Chevron Indonesia Company (Cico) and Masela by Inpex.
Based on the approval of Work Program and Budget (WP&B) for year 2011, which was issued
at the end of 2010, total employment of exploration will be increased along with the signing
of new working area’s contracts.
04HUMAN RESOURCE MANAGEMENT
ASR FUND PROGRESS IN THE NATIONAL BANKING SECTOR
Bank Mandiri Bank BRI Bank BNI
Note:
1. All the years 2006 to 2010 data were based on 2010 CDM report.
2. Year 2011 data was based on the total number of recommended TKA & TKI stated
in 2011 WP&B.
REALIZATION OF TKA & TKI IN 2010 - PRODUCTION JOB
2006 2007 2008 20102009 2011
30.000
25.000
20.000
15.000
10.000
5.000
0
REALIZATION OF TKA & TKI IN 2010 - EXPLORATION JOB
2006 2007 2008 20102009 2011
2500
2000
1500
1000
500
0
200934%
16%
50% 201034%
34%
32%
Ora
ng
Ora
ng
BPMIGAS Annual Report 2010 4847
National Capacity Empowerment & K3LL
CAREER DEVELOPMENT
In order to monitor Indonesian workers’ career development in the PSC contractors
management and to ensure transfer of technology in the upstream oil and gas business
activities, BPMIGAS designed Career Development Monitoring program (CDM). Through
the CDM program, BPMIGAS appraises contractor’s performance on personal expenses,
manpower planning, career development, training development, opportunities for
international assignments for workers (for instance through swapping program, overseas
job assignment, technical development exchange, internationalization), succession plan
and so forth.
In 2010, the monitoring results indicated that 3 (three) major PSC Contractors with the best
program include Medco E&P Indonesia (MEPI), PT Chevron Pacific Indonesia (CPI) and PT
Pertamina EP. While the other 3 (three) minor PSC contractors with the best program was BP
Indonesia, Santos and Pearl Energy.
In overall, the program development implementation for Indonesian workers plunged in 2010.
The main factors were due to the policy of post-crisis contraction budgets from the PSC
Contractors’ headquarter.Another effort is by swapping foreign workers employed at the PSC contractors with
declining production rate with Indonesian workers in the attempt to maximize the use of local
resources as to limit the numbers of foreign workers posted at PSC Contractor exploration.
BPMIGAS also encourages the management of PSC Contractors to develop Indonesian
workers’ career, hence they will be able to replace the various positions that were previously
taken by foreign workers, such as leadership position, surface operations, subsurface,
drilling, wells and completion as well as in engineering & projects discipline.
In order to confirm Indonesian Human Resource development work as planned, BPMIGAS
will evaluate the effectiveness of the use of foreign workers in the beginning of 2011 while
ensuring that foreign workers are employed in major upstream oil and gas projects and were
given KPI targets to support project acceleration.
DEVELOPMENT OF INDUSTRIAL RELATIONS
In order to foster industrial relations management, BPMIGAS, made an attempt to expedite
the approval of the Company Regulations (PP) and the Collective Labor Agreement (CLA)
proposed by the PSC Contractors in 2010 by observing the latest developments.
Furthermore, BPMIGAS also reevaluated the salaries and benefits of all employees in the
upstream oil and gas industry and ensured compliance to current procedures and standards.
Dispute cases concerning industrial relations were hardly occurred. Most cases were
generally associated with third-party workers’ request to be assigned as permanent workers.
However, all cases have been resolved through negotiation process.
BPMIGAS evaluation have indicated results that all PSC Contractors confronted by third-party
demand have yet to possess a clear job description that divided the workers’ core business
functions with the non-core business functions. Therefore, in order to improve industrial
relations in the upstream oil and gas industry, BPMIGAS required PSC Contractors to have
clear job descriptions with monitored performance through HR audits and CDM.
REALIZATION OF TKI DEVELOPMENT PROGRAM IN 2010
2008 20102009
250
200
150
100
50
0
Internationalization
Swapping
Job Assignment
TDE
Ora
ng
BPMIGAS Annual Report 2010 49
05
National Capacity Empowerment & K3LL
50
ENVIRONMENTAL-ORIENTED DEVELOPMENT
Furthermore, by carrying out the provisions as stipulated by the laws and regulations,
the PSC Contractors are required to conduct Environmental Baseline Assessment (EBA).
Liabilities drafted in the PSC should be performed by the PSC Contractors in the beginning of
their site activities. The objective is to identify preliminary environmental data, thus it would
be a base for site development as well as to provide preliminary mitigation strategy should
contamination takes place. In 2010, out of 32 EBA studies submitted by the PSC Contractors,
17 of them had been deemed to meet EBA criteria.
The PSC Contractors that are still in the exploration stage must compile a study on
Environmental Management Efforts (UKL) and Environmental Monitoring Efforts (UPL). The
implementation refers to the Minister of Environment Regulation No. 13 Year 2010. In 2010,
there were 114 studies of UKL/UPL for PSC Contractors’ activities which were evaluated by
BPMIGAS to be submitted and approved by the Ministry of the Environment or the related
Environmental Agency at the provincial or regency level, of which 50% of them have been
approved by relevant agencies.
OIL SPILL PREVENTION
During year 2010, there were no major oil spill incident (above 15 barrels), both onshore and
offshore. This was such an achievement, considering that in recent years such disasters
often occured in the upstream oil and gas industry. This achievement was the outcome
of BPMIGAS’ and PSC Contractors’ effort in working with other agencies through several
handling exercise and preventive campaign titled “Journey to Zero Incident”.
As for preventive measures, BPMIGAS and PSC contractors renewed their Standard Operating
Procedure (SOP) on oil spill prevention. This is a combination of onshore oil spill handling
procedure and offshore oil spill handling procedure.
STUDY PRACTICETo minimize the impact of upstream oil and gas activities to the environment, Government
Regulations require PSC Contractor to conduct some preliminary assessment before starting
the activities. One of the requirements is to set up Environmental Impact Assessment (AMDAL)
analysis. AMDAL is an asseseement of the activities impact towards the environment.
AMDAL is constructed during site development by examining aspects of physical-chemical,
ecological, socio-economic, socio-cultural and public health. Basic implementation refers to
Government Regulation No.27 of year 1999 concerning Environmental Impact Analysis.
In 2010, 8 (eight) PSC Contractors submitted the AMDAL documents (which consisted of KA-
ANDAL, ANDAL-RKL-RPL) as well as the Revised AMDAL document (RKL-RPL Addendum). Until
end of year 2010, 7 (seven) of them were approved by the Ministry of Environment (MoE),
whereas 1 (one) document was still pending for approval.
PSC Contractors
Genting OilNatuna Pte. Ltd.
Pertamina HuluEnergi ONWJ
JOB PertaminaPetroChina EastJava
Pearl Oil (sebuku) Ltd.
KondurPetroleum S.A.
Total E&PIndonesie
Kalila (Bentu) Ltd. & Kalila (Korinci Baru) Ltd.
Chevron PacificIndonesia
In progress diKLH
Sudah disetujuiKLH
Sudah disetujuiKLH
Sudah disetujuiKLH
Sudah disetujuiKLH
Sudah disetujuiKLH
Sudah disetujuiKLH
Sudah disetujuiKLH
Document Title
AMDAL, development of oil field in Ande-Ande Lumut, Northwest Natuna Block
RKL/RPL Development of Oil & Gas Field in North West Java (ONJW) Offshore Block in North West Java Off-shore and DKI Jakarta
KA ANDAL Development of Oil & Gas Field in Tuban Block, Phase IV- West Area in Bojonegoro Regency and Tuban Regency, East Java Province
EIA development of Ruby Gas field in Sebuku Block, Makassar Strait
RKL/LPL additional development of oil field and natural gas of Kuaru and South Padang, Merbau Regency, Meranti Island Regency, Riau Province
RKL / LPL additional activities of oil and natural gas exploration in the Contract Mahakam Site, South Mahakam and Balikpapan Base, East Kalimantan Province
Development Plan of Gas Field at Kalila (Bentu) Ltd. Mining Site at Pelalawan Regency, Kampar Regency and Pekanbaru, Riau Province
Andal, RKL & RPL of oil production development and natural gas in Minas Siak Areal Minas, Kotabatak Pata-pahan and Libo, Riau Province
Status
No
1
2
Spilled Area
Onshore
Offshore
2009
10
6
2010
0
0
EIA APPROVAL PROCESS FOR 2010 PSC CONTRACTORS
OIL SPILL INCIDENT IN 2010
BPMIGAS Annual Report 2010 5251
National Capacity Empowerment & K3LL
In the effort of encouraging HSE performance, BPMIGAS also awarded Best HSE Performance
Award to the PSC Contractors. The assessment was based on the PSC Contractor’s Work
Safety data and PROPER for 2009 period as well as MoE Assessment for year 2009.
From the evaluation results, the best HSE Performance award was rewarded to PT. Chevron
Pacific Indonesia Block Siak (for the category over 10 million of work hours), Chevron Indonesia
Co.Makassar Block (for the category between 2-10 million of work hours) and the Energy Star
(Kakap) Ltd.Kakap Block (for the category under 2 million working hours).
ENVIRONMENTAL PERFORMANCE ASSESSMENT
Every year the Ministry of Environment (MoE) announced companies’ ratings on Enviromental
Compliance Performance Program for the upstream oil and gas activities. There were major
improvements in the quality of environmental management by companies involved in the
program during the 2010 assessment. One of the indicators was no more Black rank amongst
the PSC Contractors ever since all the contractors installed-Wastewater Treatment Plant
(IPAL). The number of contractors with PROPER rank also increased from 56 participant areas
to 59 participant areas.
In order to accelerate community self-reliance development in the surrounding oil and gas
mining area, the PSC Contractors conducted community development programs. However,
over the issuance of Minister of Energy and Mineral Resources Regulation No.22 Year 2008
concerning Types of Upstream Oil and Natural Gas Business Activity with Non-Recoverable
Cost to the Production Sharing Contract Contractors, prohibiting community development
programs to be included in the operational costs. Therefore, BPMIGAS divided the
implementation of community development program into 2 (two) categories. The objective is
to distinguish the social development programs, which will be allocated as operating costs
in order to comply with existing regulations and social development activities (community
development) which will be funded by PSC Contractors headquarters’ budget.
SOCIAL SUPPORT PROGRAM The Social Support Program (PSPO) is a community development activity conducted by the
PSC Contractors to support site operations at the working production area. This activity has
been also carried out to meet the AMDAL-related regulations or other regulations that should
be complied with.
In practice, PSPO was divided into 4 (four) types of programs namely infrastructure,
compensation for activities that correlates with permits/land use and regulatory compliance.
The programs that correlate with infrastructure covering road construction/repairment,
electrical installation and information centre construction. While the programs that correlate
with compensation covering renovation/repairment of public facilities, compensation over
the effects of operations toward public health, environmental or security, land compensation,
overlapping land, project socialization and relocation project. The programs that were related
to permit covering society’s needs in the form of donations, services and development.
06COMMUNITY DEVELOPMENT PROGRAM
Tahun
Black
Red
Red
Blue
Blue
Green
Gold
Total
1
3
2
12
27
7
0
52
1
5
5
29
17
10
0
67
0
11
48
11
0
70
Tidak Taat
Taat
2008 2009 2010
Assessment
SOCIAL PROGRAM TO SUPPORT OPERATION ACTIVITY IN 2010
Regulatory compliance Rp 97,85 Billion
Compensation Rp 52,44 Billion
Infrastucture Rp 46,39 Billion
Permit Rp 12,81 Billion
47%
6%
22%
25%
PSC CONTRACTOR PARTICIPATION THROUGH PROPER
BPMIGAS Annual Report 2010 53
National Capacity Empowerment & K3LL
54
The following chart indicates the cost composition of PSPO and Community Development
in 2010.
In 2010, some of the PSC Contractors that only carried out CD activities without PSPO were
ConocoPhillips (Natuna, South Jambi), Kodeco Energy, CITIC Seram Energy, PremierOil (Natuna
Sea) Ltd., PearlOil (Tungkal) Ltd., PT. Medco E&P - Tarakan. In 2010, the actual realization of
PSPO and upstream oil and gas CD had reached Rp311.2 billion or 35% higher compared to
actual realization of Rp231.1 billion in 2009.
SOCIAL DEVELOPMENT ACTIVITIES
Community development activities or CD is a development approach to encourage
participation and direct involvement of local residents in the process of development. By this
approach, all joint communities would be synergized with local government’s businesses
and other stakeholders so as to improve local communities’ standard of living. Thus, local
residents’ own initiative should become the focus of the CD.
Generally, the CD can be categorized into community charities such as disaster relief,
community service such as infrastructure development, training and development local
communities’ potential.
In recent years, the CD has been developed into sustainable development, where its focus
on development was not just confined to humans but also the environment; and it also not
just confined to the development with the economic aspects but also industrial aspects.
If the activities are classified into executed activities, then the CD programs for the Upstream
Oil and Gas sector were divided into 5 (five) areas, namely the economic field (to assist the
government to empower the community in an effort to improve the economy), education
and cultural affairs (in the form of scholarships, to have a complete cultural facilities and
educational infrastructure, sports) and in health affairs (to support improvement efforts in
public health), social and public facilities (to support the development of social infrastructure,
public facilities within the operational area) and environmental affairs (to support the
environmental awareness program.)
COST COMPOSITION FOR PSPO AND COMMUNITY DEVELOPMENT IN 2010
PROGRESS OF COMMUNITY DEVELOPMENT PROGRAM IN 2010 FOR UPSTREAM O&G
7%
Economy Rp 41,91 Billion
Education Rp 30,07 Billion
Environment Rp 11,91 Billion
Social and Public Facilities Rp 11,25 Billion
Health Rp 6,65 Billion
41%12%
11%6%
30%
350
300
250
200
150
100
50
0
Budget Realization
20062005 2007 2008 2009 2010
Mili
ar R
p
BPMIGAS Annual Report 2010 55
National Capacity Empowerment & K3LL
56
07SAFETY OF VITAL OBJECTS
SECURITY OBSTRUCTIONS
All assets that have been utilized to support the upstream oil and gas industry operations
were integrated in the national vital assets category, as it has important role to the nation
in terms of economic, political, social, cultural, defense and security aspects. Security
obstruction toward these assets will cause losses for the country.
Since June 2010, numbers of security obstructions were significantly increased. It was even
higher compared to the last 5 (five) years. As of the identification conducted, some matters
that can potentially raised problems include :
Uncertified land wherein most lands used for supporting the upstream oil and gas
industry have not been certified and caused annexation of land, especially in the
Right of Way (ROW) pipeline; barren land and land adjacent to community activities.
Lack of stakeholders’ comprehension (especially around the area of oil and gas
industry) toward the status of assets managed by the PSC Contractors.
One of the examples of obstruction occurred at COPI working area was road access blockage
in Suban Well#4 that was due to unsettle dispute over land. Consequently, it had caused the
closing of Suban Well#4 which caused significant loss for the country.
Blockage also took place at Gunung Kembang, operated by Medco E&P, which caused
production loss of 7 MMSCFD. Security obstructions also occurred in PT Pertamina EP
Sumbagsel working area, where most of oil pilfering was done using Pertagas Tempino Plaju
pipelines.
Based on the site observation where most security obstruction occurred in South Sumatra,
particularly on-site of ConocoPhillips Indonesia Inc. (COPI) and Pertamina EP areas. Common
obstructions were crude oil pilfering and area blockage within the site.
NUMBER AND TYPE OF SECURITY OBSTRUCTION IN 2006-2010
1200
1000
800
600
400
200
0
Oil and Gas Equipment Robbery
Oil and Gas Operation Obstruction
Total Obstruction
2006 2007 2008 2009 2010
Jum
lah
Gan
gg
uan
Medco E&P (Sumbangsel)
Pertamina EP (Mayoritas Sumbangsel)
Conoco Phillips Indonesia Inc. (Sumbangsel)
Chevron Pacific Indonesia (Riau)
Vico Indonesia (Kaltim)
28%
37%16%
10%9%
TOTAL SECURITY OBSTRUCTIONS EXPERIENCED BY SOUTH SUMATRA’S PSC CONTRACTORS IN 2010
BPMIGAS Annual Report 2010 57
National Capacity Empowerment & K3LL
58
INTEGRATED SECURITY SYSTEM
Obstructions rate in PHE ONJW working area operating in West Java area however had shown
a significant decline. Over the years, the criminal rate, especially theft in ONWJ working area
was among the highest of more than 100 times of incidents and had caused loss of hundreds
of millions of dollars. Yet, the obstruction was managed to be kept at the minimum in 2010.
Some preventive efforts have been taken to eliminate obstructions and one of them was
to establish security based community, a new form of security approach involving local
communities, government and security apparatus in resolving or settling conflicts.
At the end of 2009, PHE ONWJ signed an agreement with West Java Regional Police Office
to secure the operational area. Moreover, cooperation was also constructed with the
surrounding communities (majority was fishermen community) to be involved in securing
the areas. The mechanism was conducted through community development activities,
where the company provides revolving credit to purchase outboard motor boats for the
communities with the agreement to maintain assets or file a report in case of any theft.
These efforts were considered effective as the fisherman’s report have in fact caused some
robberies to be stopped and theft rate were cut down.
The company had also communicated the upstream oil and gas activities to local apparatus
and local parliament in order to increase awareness and encourage community participation
in protecting the upstream oil and gas assets. Local government is fully aware that the ease
of performing business activities will increase Regional Government Budget through profit-
sharing mechanism.
In 2010, BPMIGAS issued regulation for PSC Contractors with the intention of reducing
detriments due to obstruction in oil & Gas working areas. The regulations concern about
optimization of collaboration with the Joint Operation Handling Units (Satlakpamber),
development of a system called PSC Contractors’ Safety Management Standard and its
related activities, enhancement of security through regulatories, safeguard, escort and
patrol (TURJAWALI) in the working areas as well as to cultivate a sense of security ownership
of all contractors and residents in the surrounding site areas in order to establish a
community-based security system.
TOTAL ROBBERY AND LOSSES IN PHE ONJW WORKING AREA
450
400
350
300
250
200
150
100
50
-
Jan
Feb
Mar
Apr
Mei
Jun
Jul
Agt
Sep
Okt
Nov
Des
20092008 2010
Lost Value
Jum
lah
Per
isti
wa
Nila
i Ker
ugia
n (x
1.0
00
US
$)
50
45
40
35
30
25
20
15
10
5
0
4
INTERNAL BPMIGAS
THE BEGINNING OF BPMIGAS BUREAUCRACY REFORM
ProfessionalResponsive
Unity in diversityDecisive
EthicsNation Focused
Trustworthy
BPMIGAS Annual Report 2010 6261
Internal BPMIGAS
In 2010, BPMIGAS continued its
transformation process to become a world
class government agency equipped by
competent and professional human resources
(HR) in supporting the Company’s upstream
business activities in the oil and gas sector to
generate maximum revenue for the state. To
achieve these objectives, BPMIGAS has made
various efforts to reform the bureaucracy,
including organizational restructuring,
strengthening organizational capability, training
and development to reinforcing employees’
supervision through preventive and curative
efforts (post-audit).
Reinforcing supervision has become one of the
main agenda to be addressed in order to ensure
that transformation process goes as planned.
Preventive effort in the supervision area, among
others, requires all leaders and employees of
BPMIGAS to sign a moral pledge called Integrity
Pact before performing duties and obligations
in a professional manner.
Another preventive effort is the establishment
of Government Internal Control System Task
Force (SPIP), which aims to control and support
internal performance improvement of BPMIGAS
in particular as well as PSC Contractor in general.
SPIP involves all functions at BPMIGAS and is
responsible for providing input to management
in order to improve the internal control system
within BPMIGAS.
To strengthen the auditors’ function, BPMIGAS
also applied Internal Control Unit (UPI) in charge
of auditing the economic aspect as well as
the efficiency and effectiveness process at
BPMIGAS. These efforts were made by adding
competent human resources and strengthening
the position of the organization.
Immediate Fixes
Transformation in Progress
Scale UpOperations
Establish World Class Organization
Pengapalan pertama LNG
Tangguh
Realisasi penerimaan negara
2007-2009 selalu diatas
target APBN
Menawarkan 4 KPI organisasi
BPMIGAS kepada Dep Keu
2009 Realisasi komitmen
TKDN untuk pengadaan
barang dan jasa mencapai
49%
Realisasi penggunaan
perbankan nasional tahun
2009 adalah US$ 3,93 miliar
WP&B 2010 disetujui sebelum
tahun berjalan
DI tahun 2009, 55.46% gas
bumi dimanfaatkan untuk
domestik
Jumlah KKKS sampai dengan
245
2010 Realisasi komitmen TKDN
untuk pengadaan barang dan
jasa mencapai 69%
Realisasi penggunaan
perbankan nasional 2010
sampai US$ 7,87 miliar.
WP&B 2011 disetujui sebelum
tahun berjalan
Penyelarasan dan
implementasi proses bisnis,
kewenangan, job desc,
manual, dan KPI
Implementasi program
peningkatan kapabilitas
organisasi
Peningkatan kerja sama
dan keterbukaan kepada
stakeholders
Implementasi ICT Blueprint
Penandatanganan MOU
dengan berbagai lembaga
pemerintahan
Memulai internalisasi core
values
Perbaikan yang
berkesinambungan untuk
proses bisnis (continous
improvement)
Peluncuran program untuk
memaksimalkan pasoka
domestik barang dan jasa
oleh industri penunjang migas
dalam negeri
Peningkatan program-
program ICT (eg. data real-
time dari KKKS)
Peningkatan kapabilitas
organisasi dan industri dalam
mengantisipasi keperluan skill
tertentu (eg. Deepwater, CDM)
Sinergi antara CSR dan Bright
& Green di lokasi fasilitas
produksi
Mengintegrasikan seluruh
fungsi transaksional SDM,
HR, PMA, TI di bawah
naungan BPMIGAS- Indonesia
Incorported
Peningkatan sektor riil yang
didorong adanya finansial dari
pendapatan migas yang dapat
digunakan untuk permodalan
di bidang migas
Melembagakan inovasi
dan perbaikan lebih lanjut
(continous improvement)
Melakukan pertukaran
“business opportunities”,
bukan hanya jual beli
komoditas, akan tetapi
memanfaatkan adanya
kesempatan bisnis ke dalam
negeri
Dengan diperoleh devisa
dari penjualan SDA migas,
dan tumbuhnya industri
penunjang di dalam negeri
sehingga akan menjadi
penggerak kemajuan ekonomi
bangsa, sehingga BPMIGAS
menjadi lokomotif.
Peluncuran Misi, Visi, dan Core
Values baru
Reorganisasi BPMIGAS
(pembentukan CPMR, PPA,
PBO, Perwakilan)
Peluncuran program bekerja
berdasarkan KPI (KPI based)
Peluncuran inisiatif
peningkatan TKDN
Peluncuran program
penggunaan bank umum
nasional untuk menangani
transaksi finansial industri
hulu migas
PERJALANAN BPMIGAS MENUJU VISI ORGANISASI
2009 2010 2011 2015 2017
Per
form
ance
BPMIGAS Annual Report 2010 6463
01EMPOWERING BPMIGAS ORGANIZATIONAL CAPABILITY
Internal BPMIGAS
The organizational capabilities empowerment is one of the efforts made to improve the
competence of BPMIGAS organization in monitoring and controlling the upstream oil and
gas business activities to meet the organization’s objective and goals. Several efforts were
undertaken throughout 2010 such as restructuring of organization to be more effective
in monitoring and controlling, improving the organizational good governance practices,
enhancement of human resources quality, strengthening accountability as well as
improvement of public services.
In effort of improving good corporate governance, BPMIGAS has revamped the business
process, elucidated each functions’ duties and authorities (job descriptions), improved
the Management Authority System Guidelines (PSKM), refined the process of setting and
supervising staffs and oversee the divisions’ Key Performance Indicator (KPI), improved
management administration, as well as synchronized the Standard Working Procedures
(PTK) to be fully integrated with one another in accordance with the applicable laws and
regulations.
In order to ensure reformation process to run as planned, BPMIGAS carried out a preliminary
survey as regards the organization performance before planning out the working program.
A survey conducted in early 2010 revealed how BPMIGAS staffs have lack of consideration
toward the PSC Contractors, which resulted in delays in responding to PSC Contractors’
complaints.
To follow up the survey result, BPMIGAS has made various efforts to improve performance,
among others were disseminating the organization values to every employee, namely
Professional, Responsive, Unity in Diversity, Decisive, Ethics, Nation Focused and Trustworthy
(P.R.U.D.E.N.T). The objective is to encourage all BPMIGAS’ employees to apply the new core
values in their behavior and working activities toward the achievement of pursue the
organization’s final objectives and goals.
To keeping up the employees’ spirit in line with proper implementation of the new values,
the management has awarded 35 BPMIGAS’ employees from various functions that have
demonstrated PRUDENT core values. The award was presented at the closing ceremony of
2010 BPMIGAS Working Meeting held in December 2010.
The completion of business processes, job description and SOP in 2010 has produced
877 business processes and 82 job description functions. In addition to that, there
were 28 approved SOPs, while the other 10 are still in the pre-development phase. That
accomplishment was due to the full support and active participation of all divisions at all
levels shown during the discussion and preparation phases.
In 2010, BPMIGAS had also started to monitor implementation of KPIs that have been
implemented since September 2009. The performance measurement resulting from the
monitoring activities were quantified in numbers of achievement divided by number of
working days. The monitoring results were then reported directly to management on a
monthly basis.
In order to comply with the principles of effective and efficient good corporate governance,
BPMIGAS also set a standard of administrative management, both in the process of sorting
and ordering records, storage, maintenance and destruction of administration records.
Every employee and secretary must attend the Public Administration Management (PAU).
In 2010, the socialization of new PAU recorded 36% of total employees. The process will
continue in the following years targeting all employees.
Organization
redeployment as part
of bureaucratic reform
KPI target for all
employees and
leaders
BPMIGAS Annual Report 2010 65
Internal BPMIGAS
66
02HUMAN RESOURCE MANAGEMENT
To meet the strategic environment dynamics of the upstream oil and gas business, in 2010,
BPMIGAS prepared an HR road map management program. Based on the roadmap, human
resources development program will be implemented in 2011 and is expected to achieve
targets in 2015.
ROADMAP PROGRAM PENGELOLAAN SDM BPMIGAS
ORGANIZATION EXPANSION
The first step to achieve World Class Human Resource (HR) as one of the key requirements
to be a professional government agency division of the organization is to expand the
organization to support all employees in meeting the Company’s objectives and goals as
applied. The Company’s decision to add more employees is adjusted with the organizational
structure, which is designed on the base of the recently reformed business processes. The
most apparent functional change was the adding of new Evaluation and Legal Consideration
(EPH) sector. The Deputy of EPH Division will oversee the Legal Consideration Division, Division
of Evaluation, Reporting and Information Technology as well as the VP of Representative
Management who are being assigned in the working areas of the PCS contractors.
Changes in the organization also focus on strengthening the key areas, namely Planning,
Operational and Financial Control and to ensure full cooperation from the supporting fields
of General sector as well as Evaluation and Legal Consideration sector in order to operate
effectively.
In the process of organizational expansion, BPMIGAS also hires professional and experienced
oil and gas personnel. The objective is to fill the labor gap in level 6 (six) employees, whose
numbers are still insufficient. The needs to supply experienced and skilful personnel are
required to prepare the organization within the next 5 (five) years to replace officials who
are in their retirement stage.
CAREER DEVELOPMENT PROGRAM
To meet the needs of Head of Sub-division level officials, BPMIGAS accelerated career
development program for some of its employees from level 5 (five) and 6 (six) to be promoted
as Head of Sub Division level. Employees who have been promoted hold a proven record of
good performance with the required competencies, demonstrate maturity, managerial and
leadership attitude.
Horizon 1 :“Build the Foundation”
Horizon 2 :“Capability Alignment”
Horizon 3 :“World Class HR”
Tujuan
Fokus area pengembangan
akan dilakukan terhadap
area pengelolaan SDM yang
paling critical terhadap
bisnis dan memiliki gap
terbesar antara As-Is dan
To-Be
Initiatives
Manajemen Kompetisi
Pengelolaan Kinerja
Pengembangan Karir
Pembelajaran
Rewards
Succession Planning
Human Capital Infrastructure
Organization & Workplace
Design
Manajemen Perubahan
Initiatives
Implementasi 1 tahun siklus
performance
Knowledge Management
Employee Relations
Initiatives
Periode stabilisasi untuk
area pengelolaan SDM yang
telah diimplementasikan
Human Capital Strategy
Workforce Planning
Rekrutmen
Tujuan
“Capability Alignment”
akan dilakukan dengan
implementasi terhadap
rancangan yang sudah
dibangun di tahun pertama,
termasuk roll-out ke seluruh
organisasi
Tujuan
Meningkatkan kapabilitas
organisasi untuk menjadi
“World Class HR”
Periode stabilisasi untuk
area pengelolaan SDM yang
telah diimplementasikan
2011 2012 2013-2015
<30 th 31-35 th 36-40 th 41-45 th 46-50 th 51-54 th >54 th
WORKERS DEMOGRAPHY BASED ON LEVEL AND AGE
UC 0509 0408 0307 0206 01
20018016014012010080604020
0
2011 2012 2013 2014 2015
MPP WORKERS ANALYSIS BY LEVEL FOR THE PERIOD OF 2011 - 2015
UC05 0904 0803 0702 0601
20181614121086420
Jum
lah
Pek
erja
MP
P
BPMIGAS Annual Report 2010 6867
Internal BPMIGAS
For a comprehensive organization overhaul, BPMIGAS ran a full range of its existing human resource
management system evaluation throughout 2010. The evaluation results were used as the base for the
improvement of BPMIGAS Human Resource Management SOP, especially with regard to competency
management, performance, career development to serve as a learning point for employees to avoid
large competency gap in the organization as occurred in the previous years.
Until the end of 2010, BPMIGAS Human Resource Management SOP improvement process
had reached the existing HR management assessment and has been developed accordingly
to the desirable conditions and the working plans in order to meet the expected Human
Resource management system. The SOP improvement is due for completion by mid-2011.
In supporting the transformation process, several activities have been conducted toward
the set target. One of them was to enhance employees’ competency. During 2010, BPMIGAS
has compiled with several compulsory training programs for their employees. Employees at
the staff level received more trainings than the top-level officials. Head of divisions received
the least trainings compared to lower-level officials.
Compulsory trainings must be attended by all employees at all level and divisions. Some
of the compulsory trainings include negotiation skills, managerial skills and some others.
Special trainings will be given upon employee’s request after further selection process, by
which the approval is based on the job description function.
The total amount of BPMIGAS budget in 2010 was Rp901.17 billion and US$10.06 million or
totaling at Rp901.17 (using Rp9,300 exchange rate). The total budget was approved based
on the Minister of Finance Decree No.S-200/MK.02/2010 dated 6 May 2010. On top of that,
through the Decree No.S-578/MK.02/2010 dated 23 November 2010, the Finance Minister had
also approved an additional budget which amounted to Rp48.09 billion for office relocation
costs. The office relocation was an urgent need required to improve services in the upstream
oil and gas industry as well as to respond to the growing organizational challenges.
Budget realization for 2010 amounted to Rp880.45 billion or 92.47% of the total approved
budget. Absorption of the 2010 budget was surpassed the previous year’s budget of 86.73%
or equivalent to Rp665.10 billion. That was due to the properly constructive plan and the
more focused working program that have been carried out in 2010.
03REALIZATION OF OIL AND GAS BUDGETS AND EXPENDITURES
RAPB-RK Budget Realization
500
450
400
350
300
250
200
150
100
50t
-2
99,68%
1
99.17%%Realization
Juta
Rp
3
84,70%
4
84,48%
5
85,74%
6
54,74%
7
100%
8
82,64%
9
97,98%
BPMIGAS FACILITIES AND INFRASTRUCTURE
The emergent expansion of PSC Contractor to the current 245 units added to the growth of
BPMIGAS operational needs in supporting the execution, monitoring and control of oil and
gas upstream activities.
To support the achievement of BPMIGAS performance toward lifting, cost recovery control
and state revenue targets, the Company needs adequate infrastructures, especially an
office building that can accommodate the existing number of employees.
In addition to that, as part of the institution’s responsibility for managing strategic minerals
that are included in the national vital object, the need to maintain the data confidentiality
has become increasingly important. For that, after about 9 (nine) years of occupying the old
office building at Patra Jasa on Jl. Gatot Subroto Kav.32-34, BPMIGAS officially moved to a
new building located in Wisma Mulia on Jl Gatot Subroto No.42, South Jakarta.
This new office is providing more comfort and safety to the work place, so for that reason,
it is expected that the new atmosphere can boost BPMIGAS employees’ performance in
managing PSC Contractors.
Notes:
1. Costs of Workers & Professionalism Enhancement
2. Office Set-up & Rental
3. On-the-job Facilities
4. Operational Management
5. Business Assessment and Development
6. Development of Management Information System
7. Overseas’ Trip Allowance
8. Other Activities
9. Office Relocation Costs
Employees
Competency
Development
Activities toward
Organizational
Improvement
BPMIGAS Annual Report 2010 68
LIST OF INDONESIA’S
UPSTREAM O&G WORKING AREAS
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
PRODUCTION WORKING AREAS AND DEVELOPMENT OPERATOR
WORKING AREAS INDONESIA PETROLEUM LTD.
PETROCHINA INTERNATIONAL BANGKO LTD.
PT. MEDCO E&P RIMAU
CAMAR RESOURCES CANADA INC.
EXXONMOBIL OIL IND. INC.
LAPINDO BRANTAS INC.
KALREZ PETROLEUM (SERAM) LIMITED
PT CHEVRON PACIFIC INDONESIA
CONOCOPHILIPS (GRISSIK) LTD.
BOB PERTAMINA – BUMI SIAK PUSAKO
CHEVRON INDONESIA COMPANY
PT. PERTAMINA HULU ENERGI GEBANG & SUMATRA (COSTA)
PETROCHINA INTERNATIONAL JABUNG LTD.
CONOCOPHILLIPS (SOUTH JAMBI) LTD.
STAR ENERGY (KAKAP) LTD.
PT.MEDCO E&P INDONESIA
PETROCHINA INTERNATIONAL (BERMUDA) LTD.
KALILA (KORINCI BARU) LTD.
PT.MEDCO E&P INDONESIA
TOTALFINAELF E&P INDONESIE
CHEVRON MAKASSAR LTD.
KONDUR PETROLEUM S.A
PREMIER OIL NATUNA SEA B.V.
CONOCOPHILIPS INDONESIA INC. LTD.
PT. MEDCO E&P MALAKA
MOBIL EXPLORATION IND.
JOB PERTAMINA-TALISMAN (OGAN KOMERING)
PERTAMINA HULU ENERGI ONWJ LTD
HESS (INDONESIA-PANGKAH) LTD.
TRIANGLE PASE INC.
JOB PERTAMINA-GOLDEN SPIKE INDONESIA, LTD.
PT PERTAMINA EP
PT. CHEVRON PACIFIC INDONESIA
CNOOC SES LTD.
JOB PERTAMINA-PETROCHINA SALAWATI
SANTOS (SAMPANG) PTY LTD.
PETROSELAT, LTD.
ATTAKA
BANGKO
RIMAU
BAWEAN
N. SUMATRA, CONTRACT AREA B
BRANTAS
BULA
SIAK
CORRIDOR
C P P
EAST KALIMANTAN
GEBANG
JABUNG
SOUTH JAMBI B
KAKAP
CENTRAL SUMATRA (KAMPAR)
KEPALA BURUNG
KORINCI BARU
LEMATANG
MAHAKAM
MAKASSAR S. OFF. AREA A
MALACCA STRAIT
NATUAN SEA BLOCK A
SOUTH NATUNA SEA “B”
AREA A, N. SUMATRA
NSO/NSO Ext.
OGAN KOMERING
OFF. NORTH WEST JAVA
PANGKAH
PASE
PENDOPO-RAJA
INDONESIA
ROKAN
SOUTH EAST SUMATRA
SALAWATI
SAMPANG
SELAT PANJANG
ENERGY EQUITY EPIC (SENGKANG) PTY. LTD.
CITIC SERAM ENERGY LIMITED
JOB PERTAMINA - MEDCO TOMORI SULAWESI
PT. MEDCO E&P INDONESIA
TOTAL E&P INDONESIE
JOB PERTAMINA-PETROCHINA EAST JAVA
PEARL OIL (TUNGKAL) LTD.
PERUSDA “BENUO TAKA”
KODECO ENERGY COY.
JOB PERTAMINA-HESS JAMBI MERANG
SANTOS (MADURA OFFSHORE) PTY. LTD.
KANGEAN ENERGY INDONESIA LIMITED
VICO
MOBIL CEPU LTD
PT SARANA PEMBANGUNAN RIAU-KINGSWOOD CAPITAL LTD
KALILA BENTU SEGAT LTD
BP. BERAU LTD
BP MUTURI HOLDINGS BV
BP. WIRIAGAR LTD.
ELNUSA BANGKANAI ENERGY LTD.
CHEVRON GANAL LTD.
PC KETAPANG II LTD
PC MURIAH LIMITED
CHEVRON RAPAK LTD
PEARL OIL (SEBUKU) LTD.
HUSKY OIL (MADURA) LTD.
JOB PERTAMINA-MEDCO SIMENGGARIS PTY.LTD
PT. SELE RAYA MERANGIN DUA
INPEX MASELA LTD.
MANHATTAN KALIMANTAN INVESTMENT PTE. LTD.
TITAN RESOURCES (NATUNA) INDONESIA, LTD.
CONOCOPHILIPS WARIM Ltd.
CONTINENTAL- GEOPETRO (BENGARA-II) LTD.
ENI (Ex.Shell bv.,Lasmo,Eni,Chevron)
LUNDIN SAREBA BV.
NATIONS PETR.BV.(Ex.Ramu Inter.,Exspan,Rarmu)
ENI AMBALAT LTD.
MEDCO (Ex.Petroner,Exspan)
ENI KRUENG MANE, LTD
STAR ENERGY (BANYUMAS) LTD.
PACIFIC OIL & GAS KISARAN
ANADARKO PAPALANG, LTD.
ANADARKO POPODI LTD
ENI MUARA BAKAU BV
PEARL OIL (Ex.Sebana)
PT MEDCO E&P MERANGIN
SOUTH MADURA EXPLORATION COMPANY LTD.
MITRA ENERGY (BILITON) LIMITED
SALAMANDER ENERGY (BONTANG) PTE. LTD
TATELY NV.
PEARL ENERGY PTY LTD.
SANYEN OIL
SENGKANG
SERAM NON BULA
SENORO TOILI
TARAKAN
TENGAH
TUBAN
TUNGKAL
WAILAWI
WEST MADURA
JAMBI MERANG
MADURA OFFSHORE
ONS. & OFF. KANGEAN
SANGA-SANGA
CEPU
LANGGAK
BENTU SEGAT
BERAU
MUTURI
WIRIAGAR
BANGKANAI
GANAL
KETAPANG
MURIAH
RAPAK
SEBUKU
ONS.& OFF. MADURA STRAIT AREA
SIMENGGARIS
MERANGIN II
MASELA
TARAKAN OFFSHORE
NORTH EAST NATUNA
WARIM
BENGARA II
BUKAT
SAREBA
ROMBEBAI
AMBALAT
BENGARA I
KRUENG MANE
BANYUMAS
KISARAN
PAPALANG
POPODI
MUARA BAKAU
BULU
MERANGIN I
SOUTH MADURA
BILITON
BONTANG
PALMERAH
WEST SALAWATI
ANAMBAS
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
O&G EXPLORATION WORKS: 145 WORKING AREAS OPERATOR
WORKING AREAS
70
CAHAYA BATU RAJA
ALTAR RESOURCES, S.A.
SELE RAYA
ENI BULUNGAN, B.V.
PT. EASCO EAST SEPANJANG
IRIAN PETR. LTD. (Ex.Waropen Perkasa)
GENTING OIL NATUNA PTE. LTD.
ANADARKO INDONESIA NUNUKAN COMPANY
TROPIK ENERGY
PT. KUTAI ETAM PETROLEUM
TRANSWORLD EXPL. LTD.
ENDEAVOUR ENERGY (BENGKULU) PTY LTD.
BUNGA MAS INTERNATIONAL COMPANY
PAN ORIENT (ex. BPREC)
GREENSTAR ASSETS LTD.
ZARATEX N.V.
STAR ENERGY SENTOSA (Sebatik) LTD.
SUMATERA PERSADA ENERGI
MARATHON INTERNATIONAL PETROLEUM INDONESIA LTD.
EXXONMOBIL EXPLORATION AND PRODUCTION SURUMANA LTD.
CONOCO PHILL. (AMBORIP VI) LTD.
CNOOC BATANGHARI LTD
RANHIL JAMBI INC. PTE LTD
TATELI BUDONG-BUDONG N.V
JAPEX BUTON LTD.
WEST NATUNA EXPL. LTD.
ODIRA ENERGY KARANG AGUNG
CONOCOPHILLIPS (KUMA) LTD.
SERICA KUTEI BV
PT HEXINDO (ex. INDELBERG HEXA PERKASA LEMANG)
PETROJAVA NORTH KANGEAN INC
INDOREACH EXPL. LTD.
STAR ENERGY (SEKAYU) LTD
MITRA ENERGY (IND. SIBARU) LTD
PT MOSESA PETROLEUM
PANDAWA PRIMA LESTARI
PT KALIMANTAN KUTAI ENERGI
SIGMA ENERGY PETRONAS
PERTAMINA HULU ENERGY KARAMA
EXXONMOBIL EXPLORATION AND PRODUCTION INDONESIA (MANDAR) LTD.
ADITYA NUGRAHA PRATAMA ENERGY LAMPUNG
TALISMAN (South Makassar) ltd.
TOTAL E&P SE MAHAKAM
PREMIER OIL H B.V
M3NERGY GAMMA SDN BHD
TIARA BUMI PETROLEUM
INSANI BINA PERKASA
PERTAMINA EP RANDUGUNTING
GENTING OIL KASURI PTE. LTD.
LUNDIN RANGKAS B.V.
MURPHY SOUTH BARITO LTD.
CNOOC PALUNG ARU
ENI WEST TIMOR LIMITED
CONOCOPHILLIPS (ARAFURA SEA BLOCK INDONESIA) LTD
LUNDIN BARONANG B.V
MARATHON INDONESIA (BONE BAY) LIMITED
PT PUTINDO BINTECH
LUNDIN CAKALANG B.V
CJSC SINTEZMORNEFTEGAZ
PEARL OIL (EAST MURIAH) LTD
SERICA EAST SERUWAY BV
EXXON MOBIL EXPLORATION & PRODUCTION INDONESIA (GUNTING) LTD
PEARL OIL (TACHYLYTE) LTD
PT KARYA INTI PETROLEUM
SPE PETROLEUM LTD
SPC E & P UPSTREAM PTE LTD
HUSKY OIL NORTH SUMBAWA LTD
MURPHY SEMAI OIL CO.LTD;
PT. SUMA SARANA
HESS(INDONESIA-SEMAI V)LTD
BLACK GOLD INDONESIA LLC
ACG (SOUTH BENGARA II) PTE.LTD
RANHILL PAMAI TALUK ENERGY PTE. LTD
NIKO RESOURCES (SOUTH EAST GANAL I) LTD
SALAMANDER ENERGY (SE SANGATTA)LTD
GUJARAT STATE PETROLEUM CORP. LTD.
BLACK GOLD SOUTH MATINDOK LLC
RADIANT BUKIT BARISAN E&P
CHEVRON WEST PAPUA I LTD
CHEVRON WEST PAPUA III LTD
NIKO RESOURCES (OVERSEAS II)LTD
THREE GOLDEN ENERGY WEST TUNGKAL
EXXON MOBIL EXPLORATION & PRODUCTION INDONESIA CENDRAWASIH LTD.
NORTHEN YAMANO TECHNOLOGY OIL
NIKO RESOURCES (OVERSEAS XVI) LTD.
MARATHON INDONESIA (KUMAWA) LTD;
PT HARPINDO MITRA KHARISMA
SARMI PAPUA ASIA OIL LTD.
ARCHIPELAGO RESOURCES
PT ENERGI MINERAL LANGGENG
REALITO ENERGI NUSANTARA CORELASI
HESS (INDONESIA SOUTH SESULU) LTD.
AWE (TERUMBU) NZ LTD.
ORCHARD ENERGY (WEST BELIDA) LTD.
TALISMAN ASIA LTD
Konsorsium Petronas - Pertamina
NIKO RESOURCES (HALMAHERA KOFIAU) LTD.
BLACK GOLD EAST BULA LLC.
NIKO (WEST PAPUA IV) LTD..
PT Brilliance Energy.
PT Sele Raya Energi
Baruna Nusantara Energy Ltd
Repsol Exploracion S.A.
NIKO RESOURCES (CENDRAWASIH BAY III) LTD.
NIKO RESOURCES (CENDRAWASIH BAY IVI) LTD.
PT. Sargas & Vega
Cakra Nusa Darma (SKKMG) Ltd
NIKO RESOURCES (SUNDA STRAIT I) LTD.
Konsorsium PT. Baruna Recovery Energy - AWE Ltd
Konsorsium Bumi Hasta Mukti - Fortune Energy
AIR KOMERING
BARITO
BELIDA
BULUNGAN
EAST SEPANJANG
MANOKWARI
NORTH WEST NATUNA
NUNUKAN
PANDAN
SEINANGKA-SENIPAH
SERUWAY
BENGKULU
BUNGAMAS
CITARUM
EAST KANGEAN
LHOKSEUMAWE
SEBATIK
WEST KAMPAR
PASANGKAYU
SURUMANA
AMBORIP VI
BATANGHARI
BATU GAJAH
BUDONG-BUDONG
BUTON
DUYUNG
KARANG AGUNG
KUMA
KUTAI
LEMANG
NORTH KANGEAN
PARI
SEKAYU
SIBARU
TONGA
WAIN
WEST SANGATTA
ENREKANG
KARAMA
MANDAR
OFFSHORE LAMPUNG I
SAGERI
SOUTH EAST MAHAKAM
TUNA
UJUNG KULON
WEST AIR KOMERING
ALAS JATI
RANDUGUNTING
KASURI
RANGKAS
SOUTH BARITO
SOUTH EAST PALUNG ARU
WEST TIMOR
ARAFURA SEA
BARONANG
BONE BAY
BUTON I
CAKALANG
EAST BAWEAN I
EAST MURIAH
EAST SERUWAY
GUNTING
KERAPU
LIRIK II
MADURA
MAHAKAM HILIR
NORTH SUMBAWA II
SEMAI II
SEMAI III
SEMAI V
SERAM
SOUTH BENGARA II
SOUTH CPP
SOUTH EAST GANAL I
SOUTH EAST SANGATTA
SOUTH EAST TUNGKAL
SOUTH MATINDOK
SOUTH WEST BUKIT BARISAN
WEST PAPUA I
WEST PAPUA III
WEST SAGERI
WEST TUNGKAL
CENDRAWASIH, PAPUA
EAST PAMAI, RIAU
KOFIAU, WEST PAPUA
KUMAWA MALUKU, WEST PAPUA
LAMPUNG 3, SUMATERA SELATAN
NORTHEN PAPUA, PAPUA
PASIR, KALIMANTAN TIMUR
SOUTH EAST MADURA, JAWA TIMUR
SOUTH BLOCK “A”, SUMATERA UTARA
SOUTH SESULU, KALIMANTAN TIMUR
TERUMBU, JAWA TIMUR
WEST BELIDA JAMBI, SUMATRA SELATAN
ANDAMAN III
WEST GELAGAH KAMBUNA
HALMAHERA KOFIAU
EAST BULA
WEST PAPUA IV
SULA I
BLORA
NORTH MAKASSAR STRAITR
CENDRAWASI BAY II
CENDRAWASI BAY III
CENDRAWASI BAY IV
PURI
Sakakemang
Sunda Strait I
North Madura
Mandala
23
24
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Karapan
Long Hubung Bagun
Malunda
South Mandar
Sadang
South Sageri
North Songkang
Titan
Bone
North Arafura
Sokang
South Sokang
Wokam
GMB SEKAYU
GMB BENTIAN BESAR
GMB INDRAGIRI HULU
GMB SANGATTA I
GMB BARITO BANJAR I
GMB BARITO BANJAR II
GMB KUTAI
GMB SANGATTA II
GMB TABULAKO
GMB OGAN KOMERING
GMB OGAN KOMERING II
GMB TANJUNG ENIM
GMB KOTABU
GMB PULANG PISAU
GMB BARITO TAPIN
GMB BARITO
GMB SANGA-SANGA
GMB RENGAT
GMB MUARA ENIM
GMB BATANG ASIN
GMB Muara Enim I
GMB Muralim
GMB Tanjung II
YAPEN
EAST BAWEAN II
REMBANG
HALMAHERA
DONGGALA
ASMAT
NORTH EAST MADURA-III
EAST AMBALAT
OFFSHORE LAMPUNG II
KARANA
PT. Leogryph Indonesia
PT. Kalisat Energi Nusantara
PTTEP Malunda Ltd.
PTTEP South Mandar Ltd.
Konsorsium Talisman - PTTEP Ltd
Konsorsium Talisman - PTTEP Ltd
Ephindo Oil and Gas Holding Inc
Konsorsium Awe Limite-PT Baruna Recovery Energy-
PT Silo Maritime Perdana
Mitra Energy Limited
BP Exploration Indonesia Limited
Black Platinum Investment ltd.
KONSORSIUM LUNDIN OIL AND GAS B.V. -
SALAMANDER ENERGY (INDONESIA) LTD
MURPHY OVERSEAS VENTURES INC.
MEDCO SEKAYU
RIDLAUTAMA MINING UTAMA
SAMANTA MINERAL PRIMA
Sangatta West CBM Inc.
PT Indobarambai Gas Methan
PT. Barito Basin Gas
Newton Energy Capital Limited
PT.Visi Multiartha
PT. Artha Widya Persada
PT. Ogan interior Gas
PT. EAST OGAN METHANE
ARROW ENERGY (TANJUNG ENIM) PTE LTD.
PT SATUI BASIN GAS
PT SIGMA ENERGY BUMI - BLUE TIGER CO. LTD.
PT TRISAKTI GAS METHAN
konsorsium PT Trans Asia Resources-PT Jindal Stainless Indonesia
Virginia CBM Indonesia Ltd.
Indon CBM Ltd.
PT Pertamina Hulu Metana Sumatera 2 dengan PT Trisula CBM Energy
Konsorsium Bumi Perdana Ltd dan Glory Wealth Pacific Ltd.
Konsorsium . PT Pertamina Hulu Energi Metana Sumatera I
(PHE Metra I) & PT Indo Gas Methan (IGM)
Konsorsium PT Medeo CBM Pendopo & Dart Energy (Muralim) Pte Ltd
PT Pertamina Hulu Energi Metan Tanjung II (PT PHE Metan Tanjung II)
NATIONS PETROLEUM (YAPEN) B.V.
HUSKY OIL EAST BAWEAN LTD.
ORNA INTERNATIONAL LTD.
HALMAHERA PETROLEUM LIMITED
SANTOS (Ex.Totalfina elf,Total,Santos,Chevron)
INPAROL (INDONESIA PAPUA PETROLEUM) PTE. LTD.
ANADARKO INDONESIA COMPANY
CHEVRON (Ex. Unocal)
PETRONAS CARIGALI LAMPUNG II Ltd.
PEARL OIL (K) LTD.
TERMINATION PROCESS: 10 WORKING AREAS OPERATOR
WORKING AREAS
GMB EXPLORATION: 23 WORKING AREAS OPERATOR
WORKING AREAS
133
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135
136
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138
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141
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143
144
145
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