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INTRODUCTION
02 SKK Migas Vision and Mission

03 Core Values
04 SKK Migas Oversight Committee Chairman Foreword
06 SKK Migas Oversight Committee
08 Chairman of SKK Migas Foreword
10 SKK Migas Management
15 SKK Migas Organization Structure
16 Executive Summary of Annual Report 2017
CHAPTER I
SKK MIGAS
PERFORMANCE
20 Oil and Gas Contract Areas
22 Resources and Reserves
(Reserves Replacement Ratio)
27 PSC Contractors’ Commitment

35 Investment of Exploitation and Exploration
CONTENT
PSC Contractors
37 Oil and Gas Production/Lifting Activities

43 Distribution of Oil and Gas Revenue
45 Efficiency on Cost Recovery
CHAPTER II CHAPTER IV
EFFORTS TO INCREASE EMPOWERING
PRODUCTION AND NATIONAL CAPACITY
RESERVES 110 Oil Production Optimalization for
Domestic Plants
52 New Projects
117 Increasing Gas Supply to Meet Domestic
54 Efforts to Increase Oil and Gas Production Needs
and Reserves
120 Utilization of Local Goods and Services
59 Exploration Discoveries
123 Dispute Settlement
64 Highlight Events, Cooperation with Other
Institutions & Representatives Activities 124 Involvement of State/Regional-Owned
Banks in the Oil and Gas Business Activities
126 Management and Development of
CHAPTER III PSC Contractors’ Human Resources
MAJOR PROJECTS
85 Jambaran Tiung Biru Project
PT Pertamina EP Cepu CHAPTER V
87 Indonesia Deepwater Development Project INTERNAL SKK MIGAS
Chevron Makassar Limited
134 Audit Report
90 Abadi LNG Project
Inpex Masela Ltd. 134 Continuous Improvement in the Governance
Aspect of the Organization
92 Tangguh Train-3 Project 140 Information and Communication
BP Berau Ltd.
Technology System
96 Jangkrik Project
eni Muara Bakau
145 ATTACHMENT
99 Pakugajah Field Development Project
PT Pertamina EP CONTRACT AREAS
101 Madura BD and MDA & MBH Projects
Husky-CNOOC Madura Ltd.
103 Donggi Matindok Project

PT Pertamina EP
106 Bison Iguana Gajah Puteri Project

Premier Oil Natuna Sea B.V
INTRODUCTION
15 SKK Migas Organization Structure
CHAPTER I
SKK MIGAS
PERFORMANCE
20 Oil and Gas Contract Areas
2003 – 2017
21 The Distribution of Contract Areas in
2017
22 Indonesia’s Oil Reserves as of
1 January 2017 (Bbo)
23 Indonesia’s Gas Reserves as of
1 January 2017 (Tcf)
23 National Oil and Gas Reserves as of
1 January 2017 based on the results
of the Integrated Reserve Evaluation
Team meeting on 14 November 2017
24 Oil and Gas Reserves Map
1 January 2017
25 Oil and Gas Resources Map
1 January 2017
26 RRR of Oil and Gas
26 RRR of Oil
26 RRR of Gas
27 Exploration Commitment in The
Exploration CA Throughout 2017
28 Assesment on The Commitment
Performance for Conventional
LIST OF
Exploration CA in 2017
29 Unconventional Oil and Gas
Exploration CA Status in 2017
30 Performance Appraisal of Exploration
Commitment in Unconventional
GRAPHS
Exploration CA in 2017
31 Estimated Investment and Operating
Cost by PSC Contractors, Oil and Gas
Production, and State Revenue from
PODs
& TABLES
32 Oil And Gas Production Based on
POD/POFD/POP 2003-2017
32 POD/POFD/POP Approval and
Profile 2003-2017
33 Oil Production Additional Profile
Based on POD/POFD/POP
2003-2017
33 Gas Production Additional Profile
Based on POD/POFD/POP
2003-2017
34 Work Phase Under The POD/POFD/ 57 Realization of Development Drilling in
POP Approval 2003-2017 2017
35 Realization of Upstream Oil and Gas 57 Development Drilling Constraints
Investment - Exploitation Contract in 2017
Area
58 Workover Activity in 2017
36 Realization of Upstream Oil and Gas
Investment – Exploration Contract 58 Well Service Activity in 2017
Area
59 Contingent Resources Discovery
in 2017
37 National Oil and Gas Production
Profile
60 Exploration Drilling 2002 – 2017
60 Resource Discovery 2002 – 2017
Profile Scenarios without EOR
Projects in the Future 61 Exploration Status Determination
2010-2017
Profile Scenarios with EOR Projects in 61 Overview of CBM's Potential of Coal
the Future Exploration Targets in Each Basin
40 Decline/Increase Rate of Production 62 Illustration CBM And Unconventional
2007 – 2017 Oil and Gas Activities
41 Oil and Condensate Production 63 Unconventional Oil and Gas Resources
Performance in 2017 Data Based On Joint Study and CBM
Drilling
41 Gas Production Performance in 2017
42 Oil And Gas Lifting of
January-December 2017
43 Realization of Oil and Gas Revenue as
CHAPTER III
of 31 Dec 2017 MAJOR PROJECTS
44 Revenue Distribution in Upstream Oil
and Gas Sector 2012-2017 84 Major Projects of Upstream Oil and Gas
up to 2027 as of 31 December 2017
46 Saving from Joint Procurement
85 Pipeline Sales Case Raw Production and
47 Optimizing Asset Utilization Sales Gas
(Asset/Material Transfer in 2017)
89 Revised POD I IDD Timeline
48 Facility Sharing Agreement ("FSA")
in 2017 89 Production of Gas Condensate
89 Production of Gas in the Inlet of Bontang
CHAPTER II 103 Gas Supply Schematic from Matindok
EFFORTS TO INCREASE and Senoro Areas
PRODUCTION AND 106 Schematic Diagram of Bison, Iguana, and

Gajah Puteri Projects
RESERVES
107 The Scope of Bison, Iguana, and Gajah
Puteri Project
52 Onstream Oil and Gas Development
Projects 2017
54 Cumulative Realization of
2D-3D Seismic in 2017
Non-Seismic Survey in 2017
Non-Seismic, Geological, and
Geochemical Surveys in 2017
56 Exploration Drilling Activities
in 2017
56 Unconventional Exploration Drilling
Activities in 2017
CHAPTER IV CHAPTER V
EMPOWERING INTERNAL SKK MIGAS
NATIONAL CAPACITY
135 List of Legalized PTK in 2017
110 List of Commercialized Crude Oil or
Condensate with Commercialization 137 Gratification Acceptance Report
Scheme of Election In-Kind
138 Completion of Mitigation Plan Status
113 12 procedures for Election Not To Semester I/2017
Take In-Kind Discusssion That have
been Finalized in 2017 138 Mitigation Plan Status Semester I/2017
for Each Field
115 Graphic of Realization of Crude Oil/
Condensate Lifting between January- 139 The Three Lines of Defense Model
December of 2017 142 Infrastructure Setup
115 Composition of Realization of Crude
Oil/Condensate Lifting January-
December of 2017
116 Lifting Export Volume Percentage per
Destinated Country between January-
December of 2017
117 Increasing Gas Supply to Meet
Domestic Demands
118 Gas Utilization in Indonesia
year 2017
118 The Realization of Distributing Gas
Pipeline Domestically in 2017
119 The Realization of LNG Lifting
2012 – 2017 as of January 2018
120 The Growth of Domestic Component
Level in Upstream Oil and Gas
Industry
121 The Activities of Procuring Goods and
Services by State-Owned Enterprises
in 2010 until December 2017
LIST OF
123 Dispute and Sanction Consultation
124 Annual Transaction Commitment
125 ASR Fund
125 Total amount of ASR Fund
GRAPHS
as of 31 December
127 TKI vs TKA Data
127 The Demography of TKA Based on
Areas of Expertise
& TABLES
128 Data Comparison of TKI to RPTK
Approval
129 Recapitulation of Internships Program
in PSC Contractors
130 Development of TKI Competency

Through EFT Program, Job
Swapping, Overseas on the Job
Training, Internationalization, and
Master Programs Abroad
INTRODUCTION
A. SKK MIGAS
VISION AND MISSION
VISION
To become a proactive and trustworthy entity, as well as the primary
mobilizer in the development of the upstream oil and gas industry for the
greatest welfare of the nation and state.
MISSION
Supervise and control the implementation of the Production Sharing
Contracts of upstream oil and gas activities to ensure the effectiveness
and efficiency of upstream oil and gas business activities while
maintaining environment sustainability;
Synergize stakeholders and Production Sharing Contract Contractors to

increase oil and gas production and reserves;
Work towards a conducive working culture through synergy, coordination

and application of change management, knowledge, and technology
systems;
Support and develop the national capacity to compete in national,

regional, and international levels;
Increase state revenue to give maximum contribution to the national

economy, and to develop and strengthen Indonesia’s upstream oil and
gas industry position.
2 SKK MIGAS ANNUAL REPORT 2017 | INTRODUCTION

B. CORE VALUES
P
As a form of ROFESSIONAL
commitment and Think and act according to the standards of the job.
seriousness in the
development of
R
upstream oil and ESPONSIVE
gas industry in Provide timely and prompt response with a positive and acceptable conduct
in performing the job.
Indonesia,
SKK Migas hold
U
values called NITY IN DIVERSITY
“P R U D E N T” Able to accept, recognize, appreciate, and synergize diversity to achieve
agreed goals.
described as
follows:
D
ECISIVE
Able to make decisions within the designated level of authority based on
rational and professional judgement and by considering implication/risks
from the decisions taken.
E
THICS
Act in accordance to the norms, regulations, and business ethics in
performing the duties, functions, and authorities of the position.
N
ATION FOCUSED
Understand and strive to maximize national capacity in decision making and
implementation of activities.
T
RUSTWORTHY
Can be trusted and reliable in performing the duties, functions, and
authorities of the position.
INTRODUCTION | SKK MIGAS ANNUAL REPORT 2017 3

C. SKK MIGAS OVERSIGHT COMMITTE
CHAIRMAN FOREWORD
The world oil prices that have not recovered still overshadow the upstream oil and gas industries in
2017. We saw how the world oil prices have declined in the middle of the year, though then inclined
again until the end of 2017. Under these conditions, efficiency is still the keyword underlining the
upstream oil and gas industries journey throughout 2017. Only with efficiency, the upstream oil and
gas industries can continue to operate in the best possible standards to meet the country's stated
targets.
Thanks to God Almighty, in the midst of such an uneasy situation, the upstream oil and gas
industry has successfully exceeded the state revenue target stated in the Revised State Budget
of 2017 (“APBN-P”). This achievement is significant because the Non-Tax State Revenues
("PNBP") of upstream oil and gas are the main contributor to state revenues from the Energy
and Mineral Resources ("EMR") sector, with contribution reached about 66% of total PNBP of
the EMR sector. SKK Migas Oversight Committee expressed appreciation to the hard work and
commitment of all workers of SKK Migas and PSC Contractors for the achievements that have
been made.
Despite the success of meeting these short-term targets, the upstream oil and gas industries face
increasing challenges since the world oil price has slumped in 2014, namely the sustainability of
oil and gas investment in Indonesia. From the side of the government we can confirm that the
Government of the Republic of Indonesia is always committed to simplify business by creating
certainty, simplicity, and efficiency. It is with this thought that the government introduced a gross
split sharing scheme. Several rules issued later to strengthen and clarify the implementation of this
scheme prove that the government is also open to listening to inputs from business executives to
obtain a formula that benefits both the country and business executives.

EE
Investment in the oil and gas industry is, in reality, depends on not only the EMR sector and
agencies but also other sectors and agencies. We need an investment strategy that emphasizes
the joint efforts of all parties to work together to overcome various problems that make upstream
oil and gas investment climate in Indonesia is not attractive. The government ensures will be
at the forefront of this effort. On the other hand, the commitment of SKK Migas and PSC
Contractor are also required to ensure that constraints arising from the internal industry can also
be minimized.
I invite all business executives of upstream oil and gas to stay hand in hand to improve the
performance and efficiency of operations. We hope that closer synergies in the internal industry and
with stakeholders will be able to push ahead upstream oil and gas industry to offer more glorious
work for the nation and country.
IGNASIUS JONAN
MINISTER OF ENERGY AND MINERAL RESOURCES
(as SKK Migas Oversight Committee Chairman)

D. SKK MIGAS
OVERSIGHT COMMITTEE
SKK Migas Oversight Committee Chairman

IGNASIUS JONAN was inaugurated as Minister of Energy and Mineral
Resources ("EMR") on 14 October 2016. Previously he served as
Minister of Transportation Indonesia from 27 October 2014 to 27 July
2016. He also served as President Director of PT Kereta Api Indonesia
(Persero) in 2009 until 2014.
Ignasius Jonan is an alumnus of Bachelor Degree in Accounting S1,

Economics and Business Faculty from UNAIR, graduated in 1986 then
continued to Fletcher School, Tufts University, USA.
SKK Migas Oversight Committee Vice Chairman

MARDIASMO, was inaugurated as Vice Minister of Finance since
27 October 2016. Prior to that he served as Expert Staff of the Minister
of Finance for State Expenditures in 2004-2006, Director General of Fiscal
Balance at the Ministry of Finance in 2006-2010, Head of the Financial and
Development Supervisory Board ("BPKP") in 2010-2014, and National Board
Chairman of the Institute of Indonesia Chartered Accountants since 2010 until
now. From 1 December 2014 to 6 February 2015, he was entrusted as the
Acting (Plt.) Director General of Taxes of Ministry of Finance.
He graduated from the Faculty of Economics Gadjah Mada University

("UGM") in 1981. He then continued his study at the University of Bridgeport,
Connecticut, USA with a Master of Business Administration degree in 1989.
He achieved a PhD degree from the School of Public Policy, University of
Birmingham, UK in 1999.

SKK MIGAS OVERSIGHT COMMITTEE
ARCANDRA TAHAR, PH.D. was inaugurated as Vice Minister of
Energy and Mineral Resources on 14 October 2016. Previously Arcandra
served as the Minister of EMR. Arcandra completed his Bachelor degree
in Mechanical Engineering at Bandung Institute of Technology ("ITB")
in 1994, then worked at Andersen Consulting. Furthermore, Arcandra
attended Postgraduate and Postdoctoral lectures at Ocean Engineering
Texas A&M University, USA until completion. Arcandra's career includes
Noble Denton Technical Advisor, Reserach Specialist Technip Offshore,
Lead FloatTec Hydrodynamics LLC, Principal and President of Asia
Pacific AGR Deepwater Development System, Principal Horton
Wison Deepwater and President Petroneering. Arcandra Tahar is the
owner of five patents in the field of offshore design.
SKK MIGAS OVERSIGHT COMMITTEE

THOMAS TRIKASIH LEMBONG was inaugurated as the Head of the
Investment Coordinating Board on 27 July 2016. He previously served
as Minister of Trade from August 2015 to July 2016. Tom Lembong
began his career at Morgan Stanley and Company as Sales and Trading
Associate in 1994. He then worked at Division Equities Morgan Stanley,
Singapore, Senior Manager of Corporate Finance Department Makindo,
and Investment Banker at Deutsche Securities Indonesia. From 2002 until
2005, Tom Lembong served as Division Head and Senior Vice President
of the Indonesian Bank Restructuring Agency. He also worked with the
Principia Management Group, and became a Managing Partner and
CEO of Quvat Management, a private equity fund manager established
in 2006.
Tom Lembong received a Bachelor of Arts degree from Architecture

and Urban Design at Harvard University in Cambridge, USA in 1994.
He was also selected as Young Global Leader by the World Economic
Forum in 2008.

E. CHAIRMAN OF SKK MIGAS
FOREWORD
Assalaamu'alaikum Warrahmatullaahi Wabarakaatuh

The upstream oil and gas industry was going through 2017 with caution and a glimmer of hope.
Be careful as all industry players understand that the world oil prices this year will not return to the
price level before mid-2014 that reached the US$100 per barrel. On the other hand, there was a
glimmer of hope as oil prices slowly climbed from levels around US$53 per barrel in early January
to US$60 per barrel by the end of the year. Amidst the atmosphere, every decision was carefully
monitored to ensure that targets remain met while maintaining efficiency.
In the midst of this prudent atmosphere, the upstream oil and gas industries continued to record
several achievements. We successfully met the state revenue target with US$12.7 billion or
4 percent higher than the 2017 revised state budget targeted at US$12.2 billion. The elements of
upstream oil and gas revenues that have a significant effect on state revenues are derived from two
components: Non-Tax State Revenue ("PNBP") and Tax of Oil and Gas. The achievement should
be grateful and appreciated for proving the sector's commitment to meeting the targets set by the
state in 2017.
On the other hand, more than 15 oil and gas projects successfully went onstream in 2017. Among
the projects were the Sumpal Compression Project (ConocoPhillips (Grissik) Ltd.); Matindok
Project (PT Pertamina EP); Paku Gajah Project (PT Pertamina EP); Jangkrik Field (eni Muara
Bakau B.V); and BD Field (Husky-CNOOC Madura Ltd). The projects were still in the early
stages of operation. It is expected in the future, the production of these projects can continue to
increase and contribute optimally to national oil and gas production.
In addition to the projects that have begun to produce, a step forward has also been made by the
Tiung Biru Jambaran Project (PT Pertamina EP Cepu) with the groundbreaking of the project by
the Minister of Energy and Mineral Resources on 26 September 2017. We all certainly hope the
development of this project can go according to plan and the Jambaran Tiung Biru Field can soon
contribute to the national production.
Along with the onstream of Jangkrik Field, Jambaran Tiung Biru Field is also included in five
upstream oil and gas projects that became the national strategic project.

The other three projects are Indonesia Deepwater Development ("IDD"), Tangguh LNG Train-3,
and Abadi Field, Masela Block. The presence of these large projects shows that, despite the impact
of declined world oil prices, Indonesia's upstream oil and gas industry continues to move and even
move other sectors. Completion of these projects within planned deadlines is essential to ensure the
upstream oil and gas industry still contributes significantly to state revenues and national energy
supplies.
The presence of these projects provides an overview of Indonesia’s upstream oil and gas industry
in the medium term. While for the long term, all upstream oil and gas people have to work even
harder to excite exploration that is still less encouraging in recent years, including in 2017. The
success of exploration to find new oil and gas reserves at this time profoundly determine how the
face of upstream oil and gas industry of Indonesia in the future. Inevitably this step requires the
support of all stakeholders.
Achievements in 2017 were expected to pump the spirit of all upstream oil and gas industry
workers to meet the targets agreed in the 2018 Work Program and Budget ("WP&B"). This
2017 Annual Report recorded the hard work and achievements made in 2017. We expect better
performance and achievement will continue in the year 2018. All efforts that we do no other
purpose than to provide maximum added value for the nation and state of Indonesia. Let's work
together, faster, and more efficiently!
Wassalamualaikum Wr. Wb.

AMIEN SUNARYADI

F. MANAJEMEN
SKK MIGAS
CHAIRMAN OF SKK MIGAS

“The year 2017 is the turning point year of
improving world oil prices which implicates
to the increase in state revenues. This
phenomenon brought optimism about
investment growth in the upstream oil and
gas industry.”
AMIEN SUNARYADI was inaugurated as

the Chairman of SKK Migas on 21 November
2014. Previously he served as Deputy Chairman
of KPK (2003-2007), Senior Governance and
Anti-Corruption Officer at World Bank
(2007-2012), and Partner Fraud Investigation
& Dispute Services in EY Indonesia
(2012-2014). Born in 1960, he managed to
earn degrees from Indonesia State College
of Accountancy ("STAN") and College
of Business Administration, Georgia State
University, Atlanta. He began his career by
working as a civil servant at the Finance and
Development Supervisory Agency ("BPKP").
VICE CHAIRMAN OF SKK MIGAS
"Following the Achievement of SKK Migas in 2017:
1. Achievement of SKK Migas performance in 2017 was quite
encouraging with lifting oil and gas 1.94 million boepd (of 2 million
boepd targeted);
2. State revenue achievement from upstream oil and gas reached
US$12.7 billion (4% above the target of US$12.2 billion in Revised
State Budget);
3. The contribution of Cepu block 204 thousand bopd exhilarating thanks
to hard work of all parties."
SUKANDAR was inaugurated as the Vice Chairman of SKK Migas on

26 May 2017, after serving as President Director and Chief Executive
Officer ("CEO") of Krakatau Steel (Persero) Tbk ("KS").
As a graduate of Mechanical Engineering at Institut Teknologi Sepuluh
November Surabaya, he started his career in oil and gas 25 years ago
as Drilling Engineer at Caltex ("now Chevron Pacific Indonesia").
After that, he turned to the banking industry and worked at Citibank
for 8.5 years. Sukandar then took a career in Bahana Pembinaan Usaha
Indonesia (Persero) as Director before moving to KS in 2017 as Finance
Director.
SECRETARY OF SKK MIGAS

"During the three years of applying the state budget mechanism, so
long as SKK Migas continued to seek improvement in organizational
governance and increase public confidence. Internal restructuring of
SKK Migas during 2017 did not close the possibility to be done in the
coming years for the optimum upstream oil and gas performance."
ARIEF SETIAWAN HANDOKO was inaugurated as the Secretary of

SKK Migas on 26 May 2017 after serving as Vice President of Supply
Chain Management at the ConocoPhillips Indonesia. Born in Jakarta,
1967, he managed to earn degrees from STAN in 1989 followed by an
accountant degree from the University of Indonesia. He holds a Master of
Business Administration degree from Case Western Reserve University in
Cleveland, the USA in 2001. Having a background as an Auditor, before
joining ConocoPhillips for nearly 10 years from 2008-2017, he has been
at the Supreme Audit Agency for 19 years.

DEPUTY FOR PLANNING OF SKK MIGAS
"The year 2017 is focused on 5 things for the short and long-term: increasing
the number of reserves, increasing production, cost recovery efficiency,
improving human resources, and simplifying business processes. Although state
revenues were above target, much remains to be done together to achieve the
state budget target. E&P oil and gas investments remained high and hopefully
will be better through these 5 things and when offset by rising oil prices in
2018. Hopefully, SKK Migas can continue to play an important role for the
greatest prosperity of the people of Indonesia."
JAFFEE ARIZON SUARDIN was inaugurated as SKK Migas Deputy for

Planning on 26 May 2017 after serving as Expert Staff for Minister of Energy
And Mineral Resources ("EMR") since July 2016, after 13 years in the United
States. With the background of ITB Chemical Engineering education to achieve
doctoral program in 2008, the man who is familiarly called Buyung has a focus
on five things in SKK Migas: increasing reserves, production, cost optimization,
business process simplification, and improving the quality of human resources.
Before that, he worked at Shell, Houston and was responsible for managing
many mega-projects in the Gulf of Mexico, Brazil, Singapore, and Norway,
responsible for Project Management, and engineering for a wide range of
offshore technologies.
DEPUTY FOR OPERATIONS OF SKK MIGAS

“Although all parties have worked hard, 2017 achievement was still not
delightful inspite of the state revenue exceeded the target of the state
budget. However, national production was still below target. We still lost
some workers as a result of work accidents, so it takes a lot of effort in
the next year including collaboration with PSC Contractor partners to
focus more on target achievement."
FATAR YANI ABDURRAHMAN was inaugurated as SKK Migas

Deputy for Operations on 26 May 2017. The man with the educational
background of Chemical Engineering ITB started his career at ARCO
in 1989 and had experience in the oil and gas industry for 30 years.
Various fields in oil and gas have been undertaken, such as exploration,
downstream, as well as Liquefied Natural Gas ("LNG"). He worked for
8.5 years at ExxonMobil Houston which then continued at Shell in the
downstream. He also conducted an exploration project at Talisman and
Murphy and production at ConocoPhillips before serving as Head of
Production and Head of ORSA Front End at Petronas.


DEPUTY FOR FINANCIAL AND MONETIZATION OF
SKK MIGAS
"It is time that the criteria of upstream oil and gas achievement are not
just how much the state revenue generated from oil and gas monetization,
but how big the multiplier effect of upstream oil and gas activities for
national and regional economic growth. Therefore, increased investment for
exploration activities will ensure the sustainability of oil and gas upstream
roles in adding value to national energy security."
PARULIAN SIHOTANG was inaugurated as SKK Migas Deputy for

Financial and Monetization in May 2015. Born in 1963, he earned a
scholarship from the Government of Indonesia to study Accountant at
STAN and from the World Bank for Master of Accountancy from Case
Western Reserve University, Cleveland, United States of America. He
completed Ph.D. from Dundee University, the UK in 2003. Before joining
SKK Migas in 2008, the accountant who was the best graduate of
LEMHANAS in 2014 worked as an Auditor at BPKP.
DEPUTY FOR BUSINESS SUPPORT OF SKK MIGAS

"The achievement of state revenues in 2017 becomes a momentum to
bounce back in managing the upstream oil and gas industry as much as
possible for the prosperity of the people in accordance with Article 33 of the
1945 Constitution."
ATOK URRAHMAN was inaugurated as SKK Migas Deputy for

Business Support on 26 May 2017 after serving as Expert Staff of
SKK Migas Oversight Committee for about 6 months. As an Alumni of
the Indonesian Armed Forces Academy ("AKABRI") at Navy in 1983,
he once served as an expert staff of the Indonesian National Armed
Forces Commander ("TNI") in the field of inter-agency relations and
specialized areas. He has also been a special staff of the Minister of
Transportation Republic of Indonesia in Inter-Agency Relations.

DEPUTY FOR PROCUREMENT MANAGEMENT OF
SKK MIGAS
"Efficiency remains the key to procurement and upstream oil and gas
supply chains by 2017 by promoting savings in asset management and
tender execution. It is also supported by the cooperation (MoU) woven
with various parties and active participation of goods/services providers
to participate in CIVD registration."
DJOKO SISWANTO was inaugurated as SKK Migas Deputy for

Procurement Management on 28 February 2017. He graduated from
Petroleum Engineering in 1990 and obtained doctoral program at
ITB in 2011. He started his career as a civil servant in the Ministry
of Energy and Mineral Resources, Directorate General of Oil and Gas
("Ditjen Migas"). He served as Director of Oil and Gas Engineering and
Environment until last as Director of Upstream Oil and Gas Business
Development, Directorate General of Oil and Gas.
INTERNAL AUDIT OF SKK MIGAS

"Oil prices in 2017 have started well, hoping investment starts to get
excited in 2018 and beyond."
TASLIM Z. YUNUS was inaugurated as Internal Audit on 30 March

2017. Alumni Geophysics Engineering ITB who took Doctor of Business
Management, UNPAD in 2008 started his career in oil and gas industry
since 1987. He joined BPMIGAS/SKK Migas since 2002 as BPMIGAS
Expert for Investment and Business Development. He has received
various previous assignments such as the Head of Internal Control Unit,
Vice President Management Representative, also as Head of Public
Relations and Head of Program and Reporting.

G. SKK MIGAS
ORGANIZATION STRUCTURE
ORGANIZATION STRUCTURE
SPECIAL TASK FORCE FOR UPSTREAM OIL AND GAS BUSINESS ACTIVITIES
Based on the Minister of Energy and Mineral Resources Regulation Number 17 and 53 year 2017
OVERSIGHT COMMITTEE
EXPERT/ADVISORS CHAIRMAN
VICE CHAIRMAN
SECRETARY INTERNAL AUDIT
STRATEGIC
MANAGEMENT OFFICE
PROGRAM AND HUMAN
AND FACILITY
COMMUNICATION RESOURCES
INFORMATION AND FINANCE
DIVISION DIVISION
TECHNOLOGY DIVISION
DIVISION
DEPUTY FOR DEPUTY FOR DEPUTY FOR

DEPUTY FOR DEPUTY FOR FINANCIAL AND PROCUREMENT BUSINESS
PLANNING OPERATION MONETIZATION MANAGEMENT SUPPORT
EXPLORATION PLANNING DRILLING BUSINESS STRATEGY, SUPPLY CHAIN LEGAL DIVISION

DIVISION AND WELL RISK MANAGEMENT, AND MANAGEMENT AND
MAINTENANCE DIVISION TAXATION DIVISION COST ANALYSIS HUMAN RESOURCE
TECHNOLOGY DIVISION AND OPERATIONS
AND FIELD PRODUCTION ACCOUNTING DIVISION SECURITIES OF
DEVELOPMENT OPERATION DIVISION PROCUREMENT OF OIL AND GAS DIVISION
DIVISION AUDIT DIVISION GOODS
PROJECT MANAGEMENT FOR EXPLORATION PSC AND SERVICES FORMALITY DIVISION
EXPLOITATION AND FACILITY CONTRACTOR MANAGEMENT DIVISION
PLANNING DIVISION MAINTENANCE REPRESENTATIVE
DIVISION AUDIT DIVISION ASSET MANAGEMENT OF SKK MIGAS*
WORK PROGRAM FOR EXPLOITATION DIVISION
DIVISION OIL AND GAS OPERATION PSC CONTRACTOR
*5 Representative Offices of SKK Migas
AND SAFETY namely:
BUDGET PLANNING SUPPORT DIVISION OIL AND GAS 1. Representatives of Northern Sumatera
DIVISION MONETIZATION DIVISION 2. Representatives of Southern Sumatra
3. Representatives of Java, Bali, and
Nusa Tenggara
4. Representatives of Kalimantan and Sulawesi
5. Representatives of Papua and Maluku

H. EXECUTIVE SUMMARY
2017 REPORT
The year 2017 was marked by the oil price that began creeping up where the average Crude Price
("ICP") in 2017 reached US$51 per barrel increase from the average ICP in 2016 which was only
US$40 per barrel. This, of course, affected the achievement of upstream oil and gas industry
performance, especially the achievement of state revenue which is one of the important KPI (Key
Performance Indicator) of SKK Migas. Realization of State Revenue from Upstream Oil and Gas
amounted to US$12.7 billion, or 104% of the 2017 revised state budget targeted at
US$12.2 billion. This revenue has increased significantly compared to 2016 which only
reached US$9.5 billion.
Some of the other achievements of upstream oil and gas industry in 2017 which are of concern to
the stakeholders are as follows:
a. Achievement of oil and gas reserve replacement ratio ("RRR") reached 55.33% or 92.2%
of target 60%. By 2017, 26 POD/POFD had been approved and 3 reserve updates provide
additional reserves of 382.5 million barrels of oil ("MMbbls") and 578.3 billion standard cubic
feet ("Bscf") with a total investment of Capital Expenditure reached US$3.6 billion and will
provide state revenues of US$4.55 billion.
b. Achievement of oil and gas lifting reached 1,944 thousand barrel of oil per day ("Mboepd"), or
98.9% of 2017 revised state budget targeted at 1,965 Mboepd. With details of realization of oil
lifting of 803.81 Mbopd or 98.6% of 2017 revised state budget targeted at of 815 Mbopd and
realization of gas lifting of 1,140 Mboepd or 99.2% of the 2017 revised state budget targeted at
1,150 Mboepd. Concerning the non-achievement of oil and gas lifting in 2017 of 1.1% below the
target of 1,965 Mboepd, it can be explained as follows:
• In general, the absorption of pipe gas by domestic industries, electricity, and fertilizers was
quite low, ranging from 79% - 86% of the Daily Contractual Quantity ("DCQ"). The lowest
absorption was in the electricity sector caused by the generation strategy


of PT PLN (Persero) using the cheapest fuel ("coal") as base-load where the average gas-
fueled plant was only used as a generator peaker under peak load conditions.
• There was a lack of production from a number of large PSC Contractors, among others:
- PT Pertamina EP, under the target of 4,150 bopd for oil and 21.80 million standard cubic
feet per day ("MMscfd") for gas;
- Pertamina Hulu Energi ("PHE") ONWJ, under the target of 1,740 bopd for oil and
23.71 MMscfd for gas;
- Total E&P Indonesie, under the target of 2,000 bopd for oil and 42.90 MMscfd for gas;
- BP Berau Ltd., under the target of 77.80 MMscfd for gas;
• Loss Production Opportunity from PHE WMO PSC Contractor at 3,000 bopd due to the
slope of PHE-12 platform since 2 May 2017.
• Production contributions from onstream projects in 2017 that are not on target as in project
of Odira Energy and Tropik Pandan PSC Contractors.
• Nevertheless, several contributions halted the decline in oil production in 2017, including
the PSC Contractor onstream of ENI Muara Bakau - Jangkrik Field Project - in May 2017.
It contributed an additional 600 MMscfd from the target of 450 MMscfd and increased
production of Banyu Urip field, ExxonMobil Cepu Ltd. that reached 204 Mbopd from the
target of 201.5 Mbopd.
c. The cost recovery achievement amounted to US$11.59 billion or 108% of the 2017 revised state
budget targeted at US$10.7 billion ("unaudited"). The actual cost recovery 2017 could not
be separated from the depreciation expense of US$3.3 billion (or 29% of total cost recovery)
contractually to be returned in 2017. It applies for Banyu Urip Field Project, Bangka Field
Project - IDD, and a number of 15 other onstream projects in 2017, as well as the depreciation
of the last year of Mahakam CA operated by the Total E&P Indonesia PSC Contractor who
then turned to PT Pertamina Hulu Mahakam as of 1 January 2018.
* Remark: unaudited data as of 30 January 2018

01
SKK MIG AS 2017
PERFORM AN CE
18 SKK MIGAS ANNUAL REPORT 2017 | SKK MIGAS 2017 PERFORMANCE

SKK MIGAS 2017 PERFORMANCE | SKK MIGAS ANNUAL REPORT 2017 19
A. OIL AND GAS
CONTRACT AREAS
One of the Government’s effort to increase oil and gas reserves and production is by adding new contract areas ("CAs")
or with the change of CA status from Exploration stage into Exploitation stage (Development/Production).
OIL AND GAS

CONTRACT AREAS
2003-2017
350
300
250
200
150
100
50
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Unconventional Exploration CA 7 20 23 42 54 55 55 58 54 49
Conventional Exploration CA 59 76 79 80 110 132 141 155 172 179 187 183 170 141 119
Exploitation CA 51 54 57 59 59 64 67 67 73 75 79 80 84 85 87
Total CA 110 130 136 139 169 203 228 245 287 308 321 318 312 280 255
During 2017 there was no addition of new CA, but there was an increase in CA status, i.e 2 CAs from Exploration Stage
up to Development Stage and 3 CAs from Development Stage to Production Stage. On the other hand there was a
significant reduction of CAs as much as 25 CAs because their termination process had been completed.

THE DISTRIBUTION OF
CONTRACT AREAS
IN 2017
TERMINATION PROCESS
TOTAL EXPLOITATION UNCONVENT CBM EXPLORATION CONVENTIONAL UNCONVENT
ONSHORE 138 CAs 45 CAs 6 CAs 37 CAs 38 CAs 6 CAs 6 CAs
OFFSHORE 83 CAs 29 CAs - - 34 CAs 20 CAs -
ONSHORE/ 34 CAs 13 CAs - - 16 CAs 5 CAs -

OFFSHORE
ACTIVE ACTIVE OIL TERMINATION

UNCONVENT CA & GAS CA PROCESS 37 CAs
43 CAS 88 CAs
PRODUCTION CA
73 CAs
EXPLOITATION CA CONVENTIONAL EXPLORATION CA + UNCONVENT
DEVELOPMENT CA 87 CAs 168 CAs
14 CAs
TOTAL CONTRACT AREAS

255 CAs
Remark 1 January - 31 December 2017:

1. 25 CAs were approved termination: East Sepanjang, Cakalang, Terumbu, Palangkaraya, Seinangka-Senipah,
Air Komering, Batu Gajah, East Muriah, North Kangean, Semai IV, West Papua III, Kuningan, Cendrawasih Bay III,
Cendrawasih Bay II, Barito, Bukit Batu, West Sangata, South Sageri, Halmahera-Kofiau, South East Mahakam,
CBM Barito Banjar II, CBM Muara Enim III, CBM Kutai Timur, CBM Suban I, dan CBM Melak Mendung III.
2. 2 Exploration CAs turn into Exploitation CAs: Pasir dan West Salawati.
3. 3 Development CAs turn into Production CAs: Agung (Ridho Field), Muara Bakau (Jangkrik Field), and
Madura Strait (BD Field).

B. RESOURCES AND
RESERVES
(RESERVES REPLACEMENT RATIO)
The decline of national oil and gas reserves continued to occur within 2006 to 2017. SKK Migas along with PSC
Contractors seek to contain the decline rate through the increase of various exploration programs.
National oil and gas reserves are generally distributed all around the archipelago from Sumatera to Papua with the
tendency of bigger volume of reserves in the west area than the east area, where as of January 1, 2017 Proven Reserves
(1P) were as follows:
Oil and Co ndensate: Gas dan Asso ciated Gas:

3.17 billion barrels ("Bbo"), 54.4 trillion standard cubic feet ("Tcf"), excluding
down by 4% compared to 3.31 Bbo East Natuna, is relatively stable when compared to
last year. last year's 55.2 Tcf
Below is a Reserves comparison of January 1, 2016 and January 1, 2017, the changes can be seen on the waterfall chart
INDONESIA’S OIL
RESERVES AS OF 3.50 3.31
0.25
1 JANUARY 2017 3.17
(0.09)
(Bbo) 3.00 (0.30)
Decrease 2.50
Increase
BBO
Total
2.00
1.50
1.00
0.50
-
1.1.2016 prod 2016 POD 2016 update 2016 1.1.2017

INDONESIA’S GAS
RESERVES AS OF 60.00 55.22 54.36
0.94 1.02
1 JANUARY 2017
(Tcf) 50.00 (2.82)
Decrease
40.00
Increase
TCF
Total
30.00
20.00
10.00
-
1.1.2016 prod 2016 POD 2016 update 2016 1.1.2017
National oil and gas reserves status 1 January 2017 based on the meeting of the Integrated Reserves Evaluation Team
("TECP") dated 14 November 2017.
In Place Estimate Ultimate Recover y Productio n Reser ve

H C TYPE Cu mulative
P90 P50 P10 1P 2P 3P 1P 2P 3P
Oil
(MMSTB) 73,172.2 78,950.8 86,290.5 27,313.1 29,391.5 31,295.3 24,744.0 2,569.1 4,647.5 6,551.3
Associated Gas
(TSCF) 21.4 23.1 24.5 17.3 4.1 5.8 7.2
Gas
(TSCF)
233.5 266.6 299.5 171.2 191.3 210.5 75.0 * 96.3 116.3 135.6
Condensate
2,307.1 2,524.1 2,688.9 1,705.3 601.7 818.8 983.6
(MMSTB)
TOTAL
Oil + Condensate
(MMSTB) 29,620.2 31,915.6 33,984.2 26,449.3 3,170.9 5,466.3 7,534.9
Gas + Associated Gas

(TSCF)
192.7 214.4 235.0 92.3 * 100.4 122.1 142.7
* including East Nat u na
East Nat u na (e x . Nat u na D-Alph a)
Condensate (MMSTB) 0.06
Gas (TSCF) 46.0

24
OIL AND GAS RESERVES MAP
1 JANUARY 2017
West Natuna
2,475
North Sumatra
91.8
1,038
114.5
Tarakan
427
22.3
Salawati
Kutai 100
3,631 27.1
Central Sumatra
97.5
321
Barito
673.4
3
19.3
Banggal
2,130
South Sumatra Central Java 37
Seram
9,785 1 9
Pasir
679.4 5.7
0.4
SKK MIGAS ANNUAL REPORT 2017 | SKK MIGAS 2017 PERFORMANCE

Sunda Bone
209 482
60.2
Bintuni
14,424
89.4
North West Java
East Java
3,061
1,214
508.5
501.1 Timor (Not producing yet)
North East Java
1,317 11,920
48.3 239
Gas Asso + Non-Asso Reserves (Bscf) Oil + Condensate Reserves (MMstb)

OIL AND GAS Oil Recoverable Resources (MMstb)
P90 - 77,667
RESOURCES MAP
Gas Recoverable Resources (Tscf)
1 JANUARY 2017 P90 - 3.05
0.1
6,663
2.1
1,439
24,433
0.4
16,809 0.1
0.1
8,545
2,105
17,677
0.2
0.1
In order to improve the status of Resources to Proven Resources, an acceleration of more intensive exploration program
is required. Ideally, one barrel of oil and gas equivalent produced should be replaced by one barrel of oil and gas equivalent
discovered. The rate of new reserves discovered to the reserves produced is called Reserves Replacement Ratio ("RRR").
Based on 26 approved proposals of POD/POP/POFD, an addition of reserves from Banyu Urip Field-ExxonMobil Cepu
Limited at 229 million barrels (MMbo), an update of reserves from Ujung Pangkah Field-Saka Energy at 2.3 MMbo, and
discussion of Bison Field Premier Oil at 16.2 BScf, in 2017 earned the achievement of RRR 55,3%, with the breakdown
of Crude Oil RRR by 114% and natural gas by 21%.

RRR OF OIL & GAS
250%
217%
200%
Oil And Gas RRR
PERCENTAGE RRR
RRR Target
150%
130%
112%
99%
100%
74%
67% 60% 64% 55%
34% 51%
50%
0%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
RRR OF OIL 160%
139%
140%
Oil RRR 120% 114%

RRR Target
PERCENTAGE RRR
99%
100%
82%
80%
62% 63%
58%
60%
52%
47%
40% 32%
23%
20%
0%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
RRR OF GAS 350%

310%
Gas RRR 300%
RRR Target
250%
PERCENTAGE RRR
200%
180%
150%
130% 127%
100% 90%
69% 71%
50% 35% 39%

17% 21%
0%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

C. PSC CONTRACTORS’
COMMITMENT
EXPLORATION COMMITMENT
1. CONVENTIONAL OIL AND GAS
Until the end of 2017 there were 88 active conventional oil and gas exploration CAs consisting of 79 CAs that have
entered their 3rd contract year or more and are not under termination process, which can be measured to fulfill their
Firm Commitments. Of these 79 CAs, 37 CAs have met all their Firm Commitments and 42 CAs have not met their
Firm Commitments.
EXPLORATION
CA have fulfilled their Firm Commitment
COMMITMENT
Total 255 CAs CA have not fulfilled their Firm Commitment
IN THE EXPLORATION
CA THROUGHOUT 2017 9 CAs < 3 years
79 CAs > 3 years
43
79 CAs > 3 years
37
88
42 CAs 37 CAs
87 Performance Zone: Performance Zone:
Pink = 15 CAs Gold = 7 CAs
Red = 22 CAs Green = 6 CAs
Exploration conventional oil and gas CA Unconventional Oil & Gas CA
Black = 5 CAs Blue = 22 CAs
Exploitation CA CA under termination process Pink = 2 CAs
Plan and Realization of Exploraiton CA Activities in 2017

Have not fulfilled their Firm Commitment
Plan Realization as of
29 Dec 2017
Activities
Total Total % • G&G = 16 Activities
• GGR = 1 Activities
2D (km) 8,544 3,409.7 39.9
• 2D Seismic = 5.980 km
3D (km2) 5,930 3,971.1 66.9
• 2D Seismic Processing = 240 km
Drilling (Conventional Well) 38 13 34.2
• 3D Seismic = 3.663,7 km2
• Drilling = 40 wells
± US$514.69 Million

Every year, SKK Migas assessing PSC Contractors whose Exploration CAs have entered their 3rd contract year and
thereafter (excluding CAs under termination process), in which the assesment is based on the following criteria,
including minimum (basic/mandatory) and proven exploration (advance).
Based on the results of the assesment until the end of December 2017, CA that increased and/or log in the category
of Gold, Green and Blue as follows:
• 7 (seven) CAs received the Gold Category
Batanghari CA (PT Gregory Gas Perkasa), East Sepinggan CA (Eni East Sepinggan Ltd.), Kasuri CA (Genting
Oil Kasuri Pte. Ltd.), Randugunting CA (PHE Randungunting), South Sesulu CA (PT Saka Indonesia Sesulu),
South West Bukit Barisan CA (PT Rizki Bukit Barisan E&P) and Wain CA (PT Pandawa Prima Lestari)
• 6 (six) CAs received the Green Category
Duyung CA (West Natuna Exploration Ltd.), North Ganal CA (Eni North Ganal Ltd.), North Sokang CA (North
Sokang Energy Ltd.), South Bengara II CA (Caelus (South Bengara II) Pte. Ltd.), South East Madura CA
(PT Energi Mineral Langgeng) and Tuna CA (Premier Oil Tuna B.V.)
• 23 (twenty three) CAs received the Blue Category
Anugerah CA (Husky Anugerah Ltd.), Babar Selaru CA (Inpex Babar Selaru Limited), Bala-Balakang CA
(Krisenergy (Tanjung Aru) B.V.), Blora CA (PT Sele Raya Energi), Bohorok CA (Bukit Energy Bohorok Pte
Ltd), Bone CA (Mitra Energy (Indonesia Bone) Ltd.), Budong-Budong CA (Harvest Budong-Budong), Buton
I CA (PT Putindo Bintech), East Jabung CA (Talisman East Jabung B.V.), Kuala Pambuang CA (PT Mentari
Pambuang Internasional), Lhokseumawe CA (Zaratex N.V.), Lirik II CA (PT MRI Lirik II), Mahakam Hilir CA
(Cue Kalimantan Pte. Ltd.), Offshore North X-Ray CA (Conrad Petroleum (V) Ltd.), Offshore Timor Sea I CA
(Eni Offshore Timor Sea I Limited), Sakakemang CA (Talisman Sakakemang BV), Sakti CA (KrisEnergy (Sakti)
B.V.), South Block "A" CA (Renco Elang Energy Pte. Ltd.), South Sokang CA (Medco South Sokang B.V.),
Udan Emas CA (KrisEnergy (Udan Emas) B.V.), West Papua IV CA (Ophir Energy Indonesia (West Papua IV)
Ltd.), West Sebuku CA (Mubadala Petroleum (West Sebuku) Ltd), Wokam II CA (PT Saka Energi Wokam).
ASSESMENT ON
THE COMMITMENT
PERFORMANCE
30 27
FOR CONVENTIONAL
25 23 23
EXPLORATION CA IN 22
2017 20
16
15 16
Assesment in December 2016 15
12
10
Assesment in December 2017 7
5 6
5
2
0
BLACK RED PINK BLUE GREEN GOLD

Remark:
• Black : not fulfilled part or all financial obligation and only performed G&G study or did not perform
any Firm Commitment.
• Red : performed a small part of the Firm Commitment.
• Pink : performed major part of the Firm Commitment.
• Blue : fulfilled all Firm Commitment.
• Green : Blue Category that has discovered hydrocarbon under technical discovery category.
• Gold : Blue Category that has discovered potential economical reserves.
2. UNCONVENTIONAL OIL AND GAS

According to the Distribution Chart of CA’s Status in 2017, there were 43 active CAs (37 CBM CAs and 6
Unconventional Oil and Gas-Shale Hydrocarbon CAs). Out of 43 CAs, 38 CAs have entered their 3rd contract year or
more which the fulfillment of their Firm Commitment can be assessed. The fulfillment of Firm Commitment for the
38 CBM CAs indicates that 14 CBM CAs have managed to fulfill all of their Firm Commitments and 24 CBM CAs
have not yet fulfilled their Firm Commitments.
UNCONVENTIONAL CA have fulfilled their Firm Commitment

Total 255 CAs
CA have not fulfilled their Firm Commitment
OIL AND GAS
EXPLORATION CA 5 CAs < 3 years 38 CAs > 3 years
43
STATUS IN 2017 37
38 CAs > 3 years
88
24 CAs
Performance Zone:
87 14 CAs
Pink = 9 CAs
Red = 7 CAs Performance Zone:
Exploration conventional oil and gas CA UOG CA Black = 8 CAs Blue = 14 CAs
Exploitation CA CA under termination process
Plan and Realization of Unconventional Exploraiton CA

Activities in 2017
Have not fulfilled their Firm Commitment
Plan Realization
29 Dec 2017
Activities
Total Total % • G&G = 24 Activities
• Corehole = 39 Hole
Corehole 7 5 71.4
• Dewatering = 1 Activities
Corehole + Exploratory Well 56 11 19.6
• Exploratory Well = 24 Wells
Corehole + Exploratory Well + 1 2 100
• Production Test = 15 Wells
Production Test
• Exploratory Well + Production Test = 7 Wells
Exploratory Well 3 - 0
• New Production Test = 1 Activities
Exploratory Well + Production Test 18 7 38.9
Production Test 10 2 20
± US$101.63 Million
Re-entry/Workover 1 1 100

Every year, SKK Migas also conducted an assessment towards the PSC Contractor of Unconventional Oil and Gas
Exploration CAs who have entered their 3rd year contract or more (not in the termination process CA), in which
the assessment is based on the achievement of firm commitments activities throughout 2017.
PERFORMANCE
APPRAISAL OF
EXPLORATION
18 17
COMMITMENT IN
UNCONVENTIONAL 16
14
OIL AND GAS 14
EXPLORATION CA IN 12 11 11
2017
10 9
8 8
8
7
6
4
Assessment in
December 2016 2
Assessment in 0 0 0 0
December 2017 0
BLACK RED PINK BLUE GREEN GOLD

EXPLOITATION COMMITMENT
In 2017, there were approval for three POD I as follows:
1. POD I Kinanti Field - Pasir Contract Area have been approved by Minister of EMR through letter No: 4788/13/
MEM.M/2017 on 15 June 2017;
2. POD I Balladewa-A Field West Salawati have been approved by Minister of EMR through letter No: 6923/13/
MEM.M/2017 on 30 August 2017; and
3. POD I (3rd Revision) Pulau Gading Field and Sungai Kenawang - Jambi Merang CAs have been approved by Minister
of EMR through letter No: 8197/13/MEM.M/2017 on 10 October 2017.
With that POD I approval, the number of exploitation CAs increased to 87 CAs. Until December 2017, SKK Migas
issued approvals for 26 PODs that have been delivered to PSC Contractors consisting of 3 PODs I, 12 PODs, 9 POFDs,
and 2 POPs. The estimation of investment and operating cost incurred by PSC Contractors, oil and gas production, as
well as the state revenue from those PODs, are described as follows:
*
Items Oil, MMbo Gas, Bscf Items MMUS$
2017 Cummulative Production 102.75 557.46 Investment 3,605.84

Operation 1,963.54
ASR 273.81
State Revenue 4,554.94
* until economic limit
From 2003 until 2017, SKK Migas has approved 524 POD/POFD/POPs. However from those 524 POD/POFD/POPs,
86 POD/POFD/POPs are not active due to the POD has been finished (off and no production), therefore it needs
to be revised, turned into POD, or cancelled due to technical and economic problems. So in total there are 435 active
POD/POFD/POPs with an estimated cumulative oil and gas production of 3,272.82 MMbo and 53,070.66 Bscf.
SKK MIGAS ANNUAL

2017 PERFORMANCE
REPORT 2017
| SKK
| SKK
MIGAS
MIGAS
ANNUAL
2017 PERFORMANCE
REPORT 2017 31
OIL & GAS PRODUCTION DISTRIBUTION
BASED ON POD/POFD/POP 2003-2017 9%
16 %
26 %
39 % 36 %
74 %
Oil, MMbo POD I POFD

Gas, MMboe POD POP
POD/POFD/POP Active POD Inactive POD Cumulative POD

APPROVAL AND
PROFILE
2003-2017
60 600
50 500
40 400
CUMULATIVE POD
POD
30 300
20 200
10, 100
- -
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

OIL PRODUCTION
ADDITIONAL PROFILE
BASED ON 800
POD/POFD/POP
700
2003-2017
600
Oil (+Condensate)
Mmbo 500
MMBO
400
300
200
100
-
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
GAS PRODUCTION
ADDITIONAL PROFILE
BASED ON
20,000
POD/POFD/POP
18,000
2003-2017
16,000
Gas, Bscf 14,000
12,000
BSCF
10,000
8,000
6,000
4,000
2,000
-
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

WORK PHASE UNDER
THE POD/POFD/POP
APPROVAL 2003-2017
EXPLORATION EXPLOITATION
Conceptual Design Eng.

Study (FEED)
Construction (EPCI) Production & Operation
POD I/POD/ Economic Limit

Effective Date POFD start EPCI Onstream End PSC
O
PRE POD
I
FEED
II
EPCI
III
PRODUCTION
Oil Production, bopd
Gas Production, MMscfd
Gov. Cash Flow, MMUS$
IV
PSC Cum. Cash Flow, MMUS$
EXECUTION EXECUTION
SCOPE OF WORK (POD) DONE
164 POD 40 POD 61 POD
170 POD

D. INVESTMENT OF
EXPLOITATION AND
EXPLORATION PSC CONTRACTORS
INVESTMENT OF EXPLOITATION PSC CONTRACTOR

In 2017, investment in the upstream oil and gas sector reached US$10.1 billion, or 88% from the target of 2017 Revised
Work Program & Budget ("WP&B"), and decreased 9% compared to the realization in 2016. The investment used to
finance exploration activities amounted to US$0.4 billion (4%), well development activities amounted to US$0.7 billion
(7%), production activities amounted to US$8.1 billion (80%) and administration activities amounted to US$0.9 billion
(9%). It is identified that from its composition, the majority of the investment in the upstream oil and gas sector is
allocated for production and development activities amounted US$8.8 billion or 87% of the total investment of upstream
oil and gas in 2017.
REALIZATION OF
UPSTREAM OIL AND
GAS INVESTMENT
- EXPLOITATION 25,000
19,235
CONTRACT AREA 18,987 9%
20,000
MILLION US$
16,541 10% 14,772

9% 21% 4%
Administration 22%
15,000 20% 11,024
20% 6%
Productiion 12%
10,066
10,000 4%
Development 64% 74% 7%
64% 62% 69%
5,000 80%
Exploration
6% 6% 6% 7% 8% 9%
Total Expenditure
-
2012 2013 2014 2015 2016*) 2017**)
*) Investment data 2016 based on Consolidated Financial Statement of PSC Contractors Quarter IV Revision in 2016
**) Investment data 2017 based on FQR Q4-2017 Preliminary as of 30 January 2018
Continuity of industrial investment in the upstream oil and gas exploitation CAs became priority to maintain a production
profile and the portfolio of oil and gas reserves, as well as generate positive impact to the process of increasing national
capacity in domestic oil and gas supporting industry. Therefore, it needs commitment from all related parties to
collectively maintain a conducive investment climate.

INVESTMENT OF EXPLORATION PSC CONTRACTOR
Increasing exploration activities in order to find new oil and gas reserves is very important, which will have a positive
impact on the prospects for future upstream oil and gas development, as well as maintaining energy availability for future
generations. Investments in exploration activities have declined particularly in the period after 2014, which was influenced
by the significant drop in world oil prices to the level of US$30 per barrel. In 2017 there was an increase in ICP compared
to 2016, but this has not been able to encourage oil and gas investment in the exploration contract area.
Until the end of 2017, the cumulative investment in exploration CAs estimated to reach US$0.2 billion, or decrease 64%
compared to the realization in 2016. The low realization of PSC Contractors’ investment in the Exploration stage, is
mainly still caused by the decline of world oil prices which still below the level of US$55 per barrel in 2017, and also due
to operational constraints. To overcome this, support from all agencies and related parties is required.
Another recent challenge faced is the prospect of oil and gas reserves in Indonesia currently mostly in the eastern region,
especially in the deep sea. This makes it technically more difficult to find new oil and gas reserves, as well as high costs.
Therefore, there need to be an attractive incentive for investors to invest in exploration activities, mainly in eastern
Indonesia and in deep sea areas. Good infrastructure support is also needed to help smooth the activities since the
exploration sites are located in remote areas. SKK Migas continues to provide stakeholders with an understanding of the
importance of exploration activities because without exploration, new reserves for oil and gas can not be found.
REALIZATION OF
UPSTREAM OIL AND
GAS INVESTMENT
- EXPLORATION 1,600
CONTRACT AREA 1,356 1,391
1,400
1,200 1,132
Exploration
MILLION US$
1,000
Administration
800 89%
Total Expenditure 89% 84%
560
600 526
400 51%
84%
200
200 81%
11% 16% 16% 49% 19%
11%
-
2012 2013 2014 2015 2016*) 2017**)
*) Data of 2016 investment based on Revised Consolidated Financial Statement of PSC Contractors Quarter IV in 2016
**) Data of 2017 investment based on FQR Q4-2017 Preliminary as of 30 January 2018

E. OIL AND GAS PRODUCTION
AND LIFTING ACTIVITIES
Indonesia’s current oil and gas production is still dominated by gas, and for the last couple of years have surpassed the
national crude oil production. This condition is predicted to continue in years ahead.
NATIONAL OIL AND

GAS PRODUCTION
PROFILE
Do minated by Oil Productio n Do minated by Gas Productio n
1,800
1,600
1,400
1,200
1,000 G AS
THOUSAND BCEPD
800
OIL
600
400
200
-
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1982
1984
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
3004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Achievement in 2017, national oil and condensate production reached 801.39 thousand barrels of oil per day ("Mbopd")
or decline 29.6 Mbopd compared to 2016 (831.0 Mbopd). Meanwhile national gas production at 7,621 million standard
cubic feet per day ("MMscfd"), decreased 317 MMscfd compared to 2016 (7,938 MMscfd). In 2017, total production of
Indonesia’s oil, condensate, and gas at 2,162 thousand barrels of oil equivalent per day ("Mboepd"), decreased
15 Mboepd compared to 2017 (2,213 Mboepd).
Realization of oil lifting in 2017 at 803.81 Mbopd or 98.6% of the 2017 revised state budget targeted. Meanwhile gas
lifting has been distributed at 6,611 Bbtud or 84% of total gas production. For domestic needs, gas has been distributed
at 3,875 Bbtud and 2,736 Bbtud for export.

There were ± 754 disruptions to production operations (including both consumer and external factors) that result in
opportunity loss of oil production at 6,010 bopd. This happened largely due to disruptions to operations of 5,824 bopd
with 741 occasions. Closing stock by the end of 2017 at 6.99 million barrels ("Mbbls") or 1.57 Mbbls lower than the
opening stock in January 2017 at 8.56 Mbbls. Gas flaring in 2017 has been reduced by 21.7% of total production in
2016.
The national rate of production for natural gas contributes 59% of the national oil and gas production. Based on the
long term production forecast, it will continue to increase until 2020, which will reach 65% in 2020 and continue to
increase until 80% in 2050 for scenarios without Enhanced Oil Recovery ("EOR") project and about 55% for scenario
with EOR project.
NATIONAL OIL AND GAS PRODUCTION PROFILE

SCENARIO WITHOUT EOR PROJECTS IN THE FUTURE
1,600
Oil (Mbopd)
1,400
Gas (Mboepd)
1,200
1,000
THOUSAND BOEPD
800
600
400
200
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050

NATIONAL OIL AND GAS PRODUCTION PROFILE
SCENARIO WITH EOR PROJECTS IN THE FUTURE
1,600
Oil (Mbopd)
1,400
Gas (Mboepd)
1,200
1,000
THOUSAND BOEPD
800
600
400
200
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
OIL AND GAS ACTUAL PRODUCTION

Until 31 December 2017, Indonesia’s oil and gas actual production has reached 2,162 MMboepd. This achievement was
measured from the evarege oil and condensate production at 801.39 bopd, while the gas production at 7,621 MMscfd.
If in 2015 to 2016 production was relatively increased, then in 2016 to 2017 this production decreased. This was due to
drilling, reprocessing, and maintenance of wells not fulfill the target, inconsistent field decline rates, high Loss Potential
Oil ("LPO") due to unplanned shutdown, and onstream projects that were shifted from the time it had been planned.
As for the decrease of gas production caused by decline rate and decrease of gas requirement from some consumers.
However, there are some contributions to curb the decline rate in oil production in 2017, with the onstream of Eni Muara
Bakau in May 2017 and the increase in ExxonMobil Cepu Ltd. production to the level of 204 Mbopd.

DECLINE / INCREASE
RATE OF PRODUCTION
2007–2017
1,200
-2.1% 2.9%
977 0.4% 4.5%
1,000 954 949 945
4.7%
902
4.1%
860 3.6%
4.3% -5.8% 831
824 0.4%
789 786 801.5
800
MBOPD
600
400
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
1. The rupture of Project Onstream:

gas pipeline Project Onstream: 1. EMCL – 2
PT TGI to CPI, 1. No return of CPI 1. CPI's unrecovered 1. EMCL-CPF Train Full
BOB and SPR production level production level as a online 2. South
dated 29 Sept as a result of the result of the rupture 2. GG Field – Sembakung
2010 rupture of the of the TGI pipeline PHE ONWJ, Field – JOB
2. Kodeco (PHE TGI pipeline (Duri (Duri Field) 3. Bukit Tua Field Simenggaris
WMO), Hit of Field) 2. Effects of delayed – Petronas 3. Kerendan Field
40th platform 2. The delay in the decision of new Ketapang – Ophir
dated decision of new operator, Kodeco / 4. Pematang
12 August 2010 operator, Kodeco/ PHE WMO Lantih Field –
PHE WMO 3. High decline in Tunu MontD'Or Oil
3. Fire of FSO and Peciko Field
Lentera Bangsa in - TEPI
CNOOC 4. Damage to
4. Leaks of Hose production facilities
and SBM in Star
Energi, Camar,
Kangean and
Pertamina EP-
TAC PAN PSC
Contractors

OIL AND CONDENSATE State Budget/Revised State Budget WP&B
Production Revised WP&B
PRODUCTION
PERFORMANCE
IN 2017 950,000 20 Feb 2017: 23-28 Apr 2017:
2016 MCL: 17 Mar 2017: 1&3 Apr 2017:
TEPI & VICO: 12 Aug 2017: 8 Sep 2017: 21-25 Oct 2017: 17 Nov 2017:
Average: Degassing CNOOC: Blackout at TEPI & VICO: CPI: pipe EMCL: FSO TEPI: CPA CPI: High
SBU and CBU BRC Tank BRC Tank
831 Vessel
Certification Certification reparation Shutdown Maintenance pressure pipeline
Mbopd Problem
900,000
Jan: 823 Feb: 806 Mar: 817 Apr: 809 May: 792 June: 804 July: 804 Aug: 805 Sep: 793 Oct: 788 Nov: 791 Dec: 790
Mbopd Mbopd Mbopd Mbopd Mbopd Mbopd Mbopd Mbopd Mbopd Mbopd Mbopd Mbopd
837,073
833,174
850,000 835,703
815,766 State Budget 815,000
824,308 821,675
806,936
800,000
801,695
BOPD
13 July 2017:
BP: Replacement 17 Sep 2017:
750,000 2 Jan 2017:
27 Feb 2017:
of filter mercury
removal
EMCL Train A
Shutdown
CPI: congeal
MCL: Electrical 13 Oct 2017:
problem; 29 Mar 2017: 11 Dec 2017:
problem at export CPI: Increased
pipe TEPI: PPA Shutdown 23 July 2017: TEPU: CPA
Medco Natuna: GLC 19 May 2017: water after water Shutdown
EMCL: Train B
Maintainance EMCL: Train injection
Trip
700,000 B SDown
3 Sep 2017:
EMCL (-95 Mbopd):
25 Dec 2017:
26 Jan 2017: Train A & B Trip
26 May 2017: CPI: High Oil in
CPI: CPI: congeal 8-10 Feb 2017: CPI: Power Transit
problem; (-2.5 Mbopd) MCL (-173 Mbopd): 7-8 Nov 2017:
(-11.4 Mbopd)
650,000 MCL: Train A Trip Reduction of production
13 May 2017:
Production stuck
due to rain 9 Aug 2017:
CPI (-8.2 Mbopd):
(-2.6 Mbopd) to prevent top tank in NDC 1&2 trip
EMCL (-200 Mbopd): CPI: Congeal &
the FSO Leaking pipes
Function Test Sdown
System
600,000
1 Dec 16 1 Jan 17 1 Feb 17 1 Mar 17 1 Apr 171 May 17 1 Jun 17 1 Jul 17 1 Aug 17 1 Sep 17 1 Oct 17 1 Nov 17 1 Dec 17
WP&B Production WP&B Gas Supply

GAS PRODUCTION State Budget/ Gas Supply
PERFORMANCE Revised State Budget Revised WP&B
IN 2017
9,500 2016 12 Mar 2017: 25-27 Mar 2017:
3 Apr 2017: 10 Apr 2017: 12 May 2017: 13-15 July 2017:
5 Aug 2017:
BP: VR-B Trip 19 Nov 2017: 19 Dec 2017:
TEPI: Intellegent BP: Start KEI: Boiler FPU BP: Train-2 BP: Replacement ENI: Plugging CPGL: Corridor
KEI: Inspection of TEPI: ESD Real
Average: Pigging Activities FPU Joko Tole
TAR Train-2 Joko Tole Trip Shutdown of filter mercury Test at PT Badak Total Shutdown
7,938 37 days (-200 MMscfd) (-600 MMscfd) removal (-500 MMscfd) (-904 MMscfd)
Mbopd
9,000
Jan: 7,820 Feb: 7,748 Mar: 7,653 Apr: 6,996 May: 7,330 June: 7,558 July: 7,800 Aug: 7,846 Sep: 7,759 Oct: 7,733 Nov: 7,725 Dec: 7,635
MMscfd MMscfd MMscfd MMscfd MMscfd MMscfd MMscfd MMscfd MMscfd MMscfd MMscfd MMscfd
8,500
7,961 7,920
8,000 7,811 7,784
7,823
7,707
MMSCFD
7,500 7,587
7,146
7,000
6,663 6,633
6,520 6,538 6,512 6,584
6,472
6,500 6,182
6,353 6,335 State Budget : 6,440
6,323 6,020
6,204 6,323 6,142 28 Dec 2017:
12 Oct 2017:
BP: Rig
6,000 5,894 BP Berau:
Pigging VRA Move in
(-425 MMscfd)
28 Jan 2017:
TEPI: NPU 26 June 2017:
Planned Shutdown 19 Feb 2017: 4 Mar 2017: 29 Apr 2017: 26 May 2017: KEI: PBU 4 Nov 2017:
21 Jan 2017: 29 Mar 2017:
BP Berau: BOG TEPI: Water Shut Mubadala: TEPI: 30 Aug 2017:
5,500 KEI: TSB
Planned
CPGL: Suban
Train-3 Gas Chiller Compressor Trip Off Program dan TEPI: PPA
Shutdown
Pigging Pigging
Monitoring
CPGL: Low ENI: LPG
ENI: ORF
Planned
Repair (-600 MMscfd) Well Test Demand Injection Test Shutdown
Shutdown
TEPI: Pigging
5,000
1 Dec 16 1 Jan 17 1 Feb 17 1 Mar 17 1 Apr 171 May 17 1 Jun 17 1 Jul 17 1 Aug 17 1 Sep 17 1 Oct 17 1 Nov 17 1 Dec 17

OIL LIFTING AND GAS DISTRIBUTION
Oil and gas lifting shall mean oil and/or gas production which has been sold/distributed. To facilitate administrative
adjustment in the Ministry of Finance that records State revenues from the upstream oil and gas sector with the cash
basis principle, the calculation of Indonesia's oil and gas lifting in the current year is carried out using the period of
January of the previous year to December of the current year.
The average oil lifting realization on the period of January to December 2017 was 803.81 Mbopd or 98.6% of the 2017
revised state budget targeted at 815 Mbopd. The actual gas distribution in the same period was 1,140 Mboepd or 99.2%
of the 2017 revised state budget targeted at 1,150 Mboepd.
OIL AND GAS LIFTING

OF JANUARY-
2,000
DECEMBER 2017
1,800
1,600
1,400
1,200
MBOEPD
1,000
800
600
400
200
-
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Oil 721 785 857 752 804 891 740 803 816 799 805 871
Gas 1,110 1,261 1,150 1,066 1,094 1,113 1,152 1,164 1,195 1,168 1,074 1,146
Total 1,831 2,046 2,006 1,818 1,898 2,003 1,893 1,967 2,012 1,967 1,878 2,017
Average 1,944 1,944 1,944 1,944 1,944 1,944 1,944 1,944 1,944 1,944 1,944 1,944
• December Production and Lifting figures were in accordance with operational report as of
31 December 2017

F. DISTRIBUTION OF
OIL AND GAS REVENUE
REALIZATION OF OIL
AND GAS REVENUE 35.00
AS OF 31 DEC 2017
28.70
30.00
Net Contractor Share 24.88 4.40

25.00
3.27
BILLION US$
Total GOI Take***)
Cost Recoverable 20.00
Gross Revenue 9.65 12.71

15.00
10.00
11.96 11.59
5.0
-
2016*) 2017**)
*) 2016 revenue distribution data based on Revised Consolidated Financial Statement of PSC Contractors Quarter IV in 2016
**) 2017 revenue distribution data based on FQR Q4-2017 Preliminary as of 30 January 2018
***) Total GOI Take includes the FTP GOI portion of the LNG Sales
The state revenue from upstream oil and gas sector on the period of 1 January to 31 December 2017 was US$12.7 billion.
It consists of revenue from oil in the amount of US$7.3 billion and from gas in the amount of US$5.4 billion, or equal to
104% of the state revenue targeted in 2017 at US$12.2 billion. The amount of the state revenue was 44% of the total
revenue generated by upstream oil and gas industry. The state revenue increased 32% compared to 2016, also followed by the
reduction in cost recovery at 3%.
The increase of ICP in 2017 compared to 2016, led to a rise in the ratio of state revenues ("Total GOI Take") to Gross
Revenue of 44% in 2017. Although this value is still in the range below 50%, the average ratio of PSC Contractor revenue
(Net Contractor Take) to Gross Revenue in 2017 amounted to 15%.

This indicated that the rise of ICP is still a significant factor in the increase in state revenue and the PSC Contractors
revenue. However, the ICP increase in 2017 had not been able to provide a boost for exploration activities to search
for new sources of oil and gas reserves. Therefore, it needs the support of the government in providing more modest
deregulation, as well as fiscal incentives selectively to maintain a conducive and profitable investment climate in the
upstream oil and gas industry.
Net Contractor Share

REVENUE
Total GOI Take***)
DISTRIBUTION IN
UPSTREAM OIL AND Cost Recoverable
GAS SECTOR 2012-2017 Gross Revenue

140
WAP ICP
120.00 (US$/bbl)
112 120
105
96
100.00
100
80.00 80
BILLION US$
US$/BBL
61.30
56,49 60
60.00 10.22 48 51
51.13
9.42 40
8.25 40
40.00 30.07
28.70
35.44 26.60 4.21 20
31.16 24.88 4.40
20.00 3.27
12.03
0
9.65 12.71
15.54 15.92 16.27
5.0
13.73 [20]
11.96 11.59
- [40]
2012 2013 2014 2015 2016*) 2017**)
*) 2016 Distribution revenue data based on Revised Consolidated Financial Statement of PSC Contractors Quarter IV in 2016
**) 2017 revenue distribution data based on FQR Q4-2017 Preliminary as of 30 January 2018
***) Total GOI Take includes the FTP GOI portion of the LNG Sales

G. EFFICIENCY
ON COST RECOVERY
Operating cost control continues to be done in order to reach the most effective and efficient level, thereby contributing
to the optimal production/lifting and state revenue from the upstream oil and gas sector. In 2017, the actual investment
disbursed by upstream oil and gas industry was US$10.1 billion. Meanwhile, the cost recoverable to PSC Contractors
in the same period reached US$11.59 billion. In 2017 there are several terminations of PSCs. This termination process
causes the PSCs to reduce the value of the investment (expenditure), but on the other hand, there was an acceleration
of the return of operating costs. This condition causes the imbalance of investment value and returns of operating cost
in 2017.
Expenditure budgeted and spent is aimed to maintain the national oil and gas production profile. Thus, it is used
to support production activities, conducting workover dan well service, as well as perform maintenance activities of
production facilities. The activities of development drilling and additional production facilities executed more selectively
and efficiently, taking into account the economics of the project, and also some development drilling has delayed to the
next fiscal period.
Throughout 2017 some saving had been carried out to maintain the continuity of operations in the upstream oil and gas
in facing the challenges of low world oil prices. The steps taken for saving are through the strategy of joint procurement;
optimizing joint utilization of assets; which applied mainly to the PSC Contractors having adjacent areas; negotiating
prices with providers of goods/services; as well as reevaluating the economics of projects which were affected by the oil
prices.

PROCUREMENT SAVING
Procurement saving of goods and services by PSC Contractors in 2017 reached US$534 million from the target of
US$55 million. The savings can exceed the target due to shared saving and price negotiation/contract value (rig, EPCI,
ship, OCTG-pipeline, and other services).
SAVING FROM JOINT

PROCUREMENT
1,800
1,600
1,400
1,200
MILLION US$
1,000
800
600
400
200
-
2009 2010 2011 2012 2013 2014 2015 2016 Dec-2017
Target 20 50 80 125 165 150 100 55 55
Realization 33.20 70.90 99.70 147.96 109.70 89.11 351.50 1,613.52 533.47

OPTIMIZING ASSET UTILIZATION
Saving value of optimizing asset utilization in 2017 amounted to US$69.93 million, consisting of activity of materials
transfer amounted US$19.85 million, the saving from the ex-used assets totaled US$50.08 million.
OPTIMIZING ASSET
UTILIZATION (ASSET /
MATERIAL
TRANSFER 25
IN 2017)
20
transfer / lease
15
saving
(used item)
10
0
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
- Target TA 2017 was US$35 Million

- Achievement of Asset Utilization Optimization amounted to US$69.93 Million until Dec 2017
Throughout 2017, in addition to asset utilization through the transfer of material, there are 29 FSA approved by
SKK Migas, where 26 of them are FSA between PSC Contractors. While others were a utilization agreement facility of
PSC Contractor by a third party beyond the upstream oil and gas industry, which is the utilization agreement of Matak
Exclusive Airport of ConocoPhillips Indonesia Inc. Ltd. by PT Travel Express Aviation Services (Xpressair) and utilization
of PT PHE ONWJ pipeline by PT Nusantara Regas.


PSC
FSA Approval
NO ARS Number/Submission
Date Owner
1 2338/JKT/2016 13 January 2017 CHEVRON PACIFIC INDONESIA, PT.
2 3030/SKKMIGAS/PHEONWJ.01/01/2017 18 January 2017 PERTAMINA HULU ENERGI ONWJ, PT.
3 3039/SKKMIGAS/PHEONWJ.01/01/2017 18 January 2017 PERTAMINA HULU ENERGI ONWJ, PT.
4 B160/SCM/MEDC/XII/2016 25 January 2017 MEDCO E&P NATUNA LTD.
5 2336/JKT/2016 30 January 2017 CHEVRON PACIFIC INDONESIA, PT.
6 40/NY-OREP/IX/2016 27 February 2017 NOTHERN YAMANO TECHNOLOGY OIL

RESOURCES EAST PAMAI
7 2435/JKT/2016 9 March 2017 CHEVRON PACIFIC INDONESIA, PT.
10 0014/BTU.GMR/140/08-16/E 17 March 2017 EMP KORINCI BARU LIMITED
12 1721/JKT/2016 17 May 2017 CHEVRON PACIFIC INDONESIA, PT.
13 MB/CCL/17/000/00015 29 May 2017 TOTAL E&P INDONESIE
14 MB/LOG/17/000/00026 16 June 2017 VIRGINIA INDONESIA CO., LLC,
15 0032/TOMORI/GM/LTR/2017 14 July 2017 JOB PERTAMINA E&P TOMORI SULAWESI
16 MB/CCL/17/000/00025 20 July 2017 TOTAL E&P INDONESIE
17 156/SPRL/V/2017 23 August 2017 BOB BUMI SIAK PUSAKO PERTAMINA HULU, PT.
18 739/SSE/MEDC/VIII/2017 29 August 2017 MEDCO E&P INDONESIA, PT.
19 258/RMU/MEDC/VIII/2017 29 August 2017 MEDCO E&P RIMAU, PT.
20 740/SSE/MEDC/VIII/2017 4 September 2017 MEDCO E&P INDONESIA, PT.

21 661/EP3800/2017-S0 10 October 2017 PERTAMINA EP, PT.
22 PHEWMO/GM/JKT/L/VII-2017/159 10 October 2017 PERTAMINA HULU ENERGI ONWJ, PT.
23 057/PBL-TED/IV/2017 20 October 2017 PETROGAS (BASIN) LTD.
24 MGMS-424/VIII/2017 20 November 2017 PERTAMINA EP, PT.
25 EXT-B-002/SCM/MEDC/L/XI/2017 27 December 2017 MEDCO E&P NATUNA, PT.
26 2376/JKT/2017 28 December 2017 CHEVRON PACIFIC INDONESIA, PT.

/NON PSC Period
BMN Between PSC &
User Object PSC Non PSC Start End
SPR LANGGAK, PT. Production Facilities V 9 Aug 2013 8 Aug 2017
PERTAMINA EP, PT. Production Facilities V 31 Dec 2016 18 Jan 2017
NUSANTARA REGAS, PT. Production Facilities V 19 Jan 2017 31 Dec 2017
TRAVEL EXPRESS AVIATION SERVICES (XPRESSAIR) Special Airport Matak V 1 Jan 2017 31 Dec 2017
SPR LANGGAKBOB BUMU SIAK PUSAKO Electric Generator V 1 Sep 2014 28 Feb 2018
BOB BUMI SIAK PUSAKO Handak Warehouse V 27 Feb 2017 27 Feb 2018
PERTAMINA HULU ENERGI SIAK Electric Generator V 28 May 2016 8 Aug 2021
PERTAMINA HULU ENERGI SIAK Production Facilities V 28 May 2014 8 Aug 2021
PERTAMINA HULU ENERGI SIAK Production Facilities V 28 May 2016 8 Aug 2017
EMP BENTU LIMITED Production Facilities V 5 Dec 2012 19 May 2021
PERTAMINA HULU ENERGI SIAK Electric Generator V 28 May 2014 8 Aug 2021
BOB BUMI SIAK PUSAKO Production Facility V 9 Aug 2016 8 Aug 2017
ENI MUARA BAKAU B.V. Gas Pipe V 29 May 2017 31 Dec 2017
ENI MUARA BAKAU B.V. Warehouse and Facility V 16 Jun 2017 7 Aug 2018
ENI NORTH GANAL LIMITED
ENI BUKAT LIMITED
PERTAMINA EP (ASSET IV) Production Facilities V 16 Apr 2016 3 Dec 2027
ENI MUARA BAKAU B.V. Condensate Access V 20 Jul 2017 31 Dec 2017
SPR LANGGAK Handak Warehouse V 23 Aug 2017 23 Aug 2018
MEDCO E&P RIMAU, PT. Production Facilities V 29 Aug 2017 27 Nov 2023
PERTAMINA EP, PT.
SELE RAYA BELIDA MERANGIN DUA, PT.
SELE RAYA BELIDA, PT.
TROPIK ENERGI PANDAN, PT.
PERTAMINA EP, PT.
TATELY N.V.
MEDCO E&P INDONESIA, PT. Production Facilities 29 Aug 2017 22 Apr 2023
V
PERTAMINA EP, PT.
TATELY N.V.
MEDCO E&P LEMATANG, PT. Production Facilities V 4 Sep 2017 5 Apr 2027
PERTAMINA HULU ENERGI WMO, PT. Production Facilities V 10 Oct 2017 1 of The PSC End
PERTAMINA EP, PT. Production Facilities V 10 Oct 2017 1 of The PSC End
JOB PERTAMINA-PETROCHINA SALAWATI Production Facilities V 20 Oct 2017 1 of The PSC End
JOB PERTAMINA-MEDCO E&P SIMENGARIS House Building V 20 Nov2017 20 May 2020

Up to set by
TRAVEL EXPRESS AVIATION SERVICES, PT. Special Airport Matak V 27 Dec 2017 DJKN on behalf of
Minister of Finance
BOB BUMI SIAK PUSAKO Production Facilities V 28 Dec 2017 8 Aug 2019
PERTAMINA HULU ENERGI SIAK Production Facilities V 28 Dec 2017 8 Aug 2019
SPR LANGGAK, PT. Production Facilities V 28 Dec 2017 8 Aug 2019
BOB BUMI SIAK PUSAKO Electric Power V 29 Dec 2017 31 Dec 2018

50 SKK MIGAS ANNUAL REPORT 2017 | EFFORTS TO INCREASE PRODUCTION AND RESERVES
02
EFFORTS TO IN CRE ASE
PRODU CTION AND
RESERVES
EFFORTS TO INCREASE PRODUCTION AND RESERVES | SKK MIGAS ANNUAL REPORT 2017 51
A. NEW
PROJECTS
In 2017, 15 projects have been successfully completed to contribute to the increase of national oil and gas production,
excluding the Mega Projects handled by the Project Acceleration Unit (UPP) such as the Jangkrik field project, Eni
Muara Bakau which is also onstream in May 2017.
ONSTREAM OIL AND GAS DEVELOPMENT PROJECTS 2017
LIQUID GAS CAPACITY

NO CONTRACT AREA PSC CONTRACTORS PROJECT ONSTREAM
CAPACITY (BPD) (MMSCFD)
1 Berau BP Berau Ltd New Condensate Diesel 118,560 - Q4 2017

Tank (NCDT)
2 Corridor ConocoPhillips Sumpal - 310 Q1 2017

Grissik Ltd Compression
3 Karang Agung PT Odira Energy Ridho 2,000 - Q1 2017

Karang Agung
4 Madura Strait Husky CNOOC Madura BD 6,600 110 Q2 2017

Madura Ltd
5 Muriah Petronas Carigali Kepodang Phase II - 20 Q1 2017

Muriah Ltd
6 Pandan PT Tropik Energi Ario Damar-Sriwijaya 2,000 - Q1 2017

Pandan Phase 1
7 Pertamina PT Pertamina EP Paku Gajah - 45 Q2 2017
8 Pertamina PT Pertamina EP SKG Musi Timur - 150 Q1 2017
9 Pertamina PT Pertamina EP Cikarang Tegal Pacing - 14 Q1 2017
10 Pertamina PT Pertamina EP Pengadaan Generator 2,500 - Q4 2017

di Lapangan X-Ray
11 Pertamina PT Pertamina EP Matindok Gas Plant 800 65 Q1 2017
12 Rokan PT Chevron Pacific Petapahan Waterflood 9,000 - Q4 2017

Indonesia Facility Upgrade
13 West Madura PT PHE WMO PHE 12 3,000 1.70 Q1 2017

Offshore
14 West Madura PT PHE WMO PHE 24 100 10 Q2 2017

Offshore
15 West Madura PT PHE WMO CPP 2 12,650 33 Q1 2017

Offshore
One success story in project supervision in an effort to increase production and reserves in 2017 is the Sumpal
Compression Project of PSC Contractors ConocoPhillips (Grissik) Ltd. Sumpal Field is located in the Contract Area
("CA") Corridor, located in Banyuasin District, South Sumatra Province. The Sumpal Compression project is a
continuation of the development of the Sumpal Phase-1 field noted on the POD Sumpal Phase-2 approved on
June 25, 2010, in which point 5 of the POD it is stated that the compression facility will be built to maintain the
production rate of 310 MMscfd (dry gas).
The Sumpal Compression project is a brownfield modification project from Sumpal Station. The outline of this project
is to install 3 single stage gas turbine compression 24,000 HP, equipped with suction scrubbers and after coolers, as well
as discharge scrubber and fuel gas treatment. It also upgrades the power system control system ("PCS") and safety
integrated system ("SIS") and the addition of power control room ("PCR") to support control center motor ("MCC")
and new switch gears. The gas derived from the separation process will be compressed from a pressure of 350 psig to
1200 psig and then flowed to Grissik Central Gas Plant and then sent to GSPL.
In accordance with approval, the project was targeted onstream in July 2017 but project completion able to be achieved
3 months sooner April 2017 and with the cost of project completion 25% lower than approved budget.
PROJECT
INAUGURATION BY
THE MINISTER OF EMR
AND CHAIRMAN OF
SKK MIGAS
B. EFFORT TO INCREASE
OIL AND GAS PRODUCTION
AND RESERVES
Efforts to increase production and reserves continue to be carried out by SKK Migas and Production Sharing Contract
("PSC") Contractors. Since early 2017, 2D, 3D seismic survey and non-seismic survey activities had been carried out,
as well as exploration drilling activities, development drilling and re-operation and well maintenance activities in order to
meet the target of production and new reserve discovery. Details of the activities among others:
EXPLORATION ACTIVITIES
Concerning the extensification efforts, SKK Migas continues to encourage PSC Contractors to increase oil and gas
production and reserves through exploration activities, both in exploration and exploitation contract areas ("CA").
The scope of activities carried out at this exploration stage cover geophysical survey (two dimensions ("2D") and
three dimensions ("3D") seismic survey) and exploration drilling. Particularly in coal bed methane ("CBM") CAs, the
exploration activities were added with CBM drilling activities (corehole, exploratory dan production test) and dewatering.
CUMULATIVE
6,000
REALIZATION OF
2D-3D SEISMIC
5,000
IN 2017
(Including parties that 4,000

KM/KM2
start from 2016)
3,000
2,000
1,000
0
2D 853.00 1,175.00 1,175.00 1,557.11 3,445.93 3,533.73 3,680.68 3,830.58 4,127.89 4,213.64 4,331.86 4,352.00
3D 51.00 88.00 88.00 258.94 286.05 289.29 318.99 780.53 2,453.44 2,544.63 4,449.93 5,282.00
1. CONVENTIONAL OIL AND GAS
• Survey
In 2017, PSC Contractors carried out and actualized 8 parties of 2D seismic surveys covering 4,352.00 km, 9 parties
of 3D seismic surveys covering 5,282.00 km2 (include parties that has been started in 2016). While, for non-seismic,
geological and geochemical survey activities in 2017, 6 parties that have carried out.
REALIZATION OF
4
NON-SEISMIC
SURVEY IN 2017
3
(Including parties that
start from 2016)
PARTY
0
PARTY 2D 1 1 0 1 1 0 0 0 0 1 1 2
PARTY 3D 1 0 1 1 0 1 0 0 0 0 1 4
CUMULATIVE
REALIZATION OF
6
NON-SEISMIC,
GEOLOGICAL AND
5
GEOCHEMICAL
SURVEYS 4
PARTY
IN 2017
3
0
CUMULATIVE REALIZATION OF
4 4 4 4 4 4 4 4 6 6 6 6
NON-SEISMIC, GEOLOGY AND
GEOCHEMICAL SURVEYS
• Exploration Well Drilling
There were 34 exploration wells drilled in 2017. It of 10 wells in 2016 and continuing drilling to 2017 as well as 25
new wells in 2017.
EXPLORATION 5
DRILLING ACTIVITIES
IN 2017
4
NUMBER OF WELL 2017
0
total realization 2017 2 1 1 2 0 2 3 2 2 3 4 3
conventional offshore realization 0 0 0 1 0 1 0 0 0 1 2 0
conventional onshore realization 2 1 1 1 0 1 3 2 2 2 2 3
2. UNCONVENTIONAL OIL AND GAS

In 2017, PSC Contractors drilled 28 new CBM wells, and 1 re-entry wells activities.
UNCONVENTIONAL 8
EXPLORATION 7
DRILLING IN 2017
6
0
0 3 5 7 5 0 1 1 3 0 1 2
EXPLOITATION ACTIVITIES
1. PRODUCTION/EXPLOITATION WELL DRILLING
SKK Migas and PSC Contractors were continuing to reduce the decline rate of production by drilling development
wells (infill well) as well as to perform well maintenance (workover / well service). In 2017, 200 Exploitation wells were
drilled out of 215 wells planned. An amount of 15 wells could not be drilled out due to issues related to rig schedule
(10 wells) and internal PSC Contractors (5 wells). The production contribution obtain from the development drilling
in 2017 of 10,096 barrels of oil per day ("bopd") and 359 million standard cubic feet ("MMscfd").
REALIZATION OF
DEVELOPMENT
25 2017
DRILLING IN 2017 Onshore Offshore
20 163 37
Target Realization
15
215 200
10
0
Onshore 6 9 9 11 18 10 17 19 10 19 20 15
Offshore 4 1 4 1 0 1 6 3 5 4 2 6
DEVELOPMENT
DRILLING
CONSTRAINTS IN 31%
2017
Rig Schedule
Internal PSC Contractors
69%
2. WORKOVER AND WELL SERVICE
Another effort to restrain the decline rate in production is to perform workover and well services. In 2017, there were
748 workover of 926 work over planned that contributed to 7,362 bopd of oil production and 86 MMscfd of gas
production. The non-fulfillment of the workover activities in 2017 is partly due to operational constraints resulting in
the resumption of activities timelines, the economic factors of the well, the portfolio of direct perforated candidates
decreasing, procurement, and operation challenges. While for well services had been done as much as 65,948 activities
of 57,141 activities planned, far exceeded the targeted plan with a contribution to oil production of 59,586 bopd and
gas production of 344 MMscfd. Also, there were 187 well closing activities of 194 activities planned due to waiting for
rig contract readiness.
WORKOVER ACTIVITY
80 Workover 2017
IN 2017
Onshore Offshore
70
602 146
Target Realization 60
926 748 50
40
30
20
10
0
Onshore 45 47 48 43 47 46 41 67 67 55 53 43
Offshore 20 15 16 11 10 13 13 12 13 9 7 7
WELL SERVICES
ACTIVITY IN 2017 Well services 2017
Onshore Offshore
6,000 56,874 9,074
Target Realization
57,141 65,948
5,000
4,000
3,000
2,000
1,000
-
Onshore 4,726 4,672 4,894 4,274 4,475 4,611 4,771 4,864 4,891 5,393 4,815 4,488
Offshore 694 650 788 848 851 823 851 776 712 852 765 464
C. EXPLORATION
DISCOVERIES
CONVENTIONAL OIL AND GAS
In 2017, 11 exploration discoveries came from 5 wells drilled in 2016 and tested in 2017 and 6 wells drilled in 2017.
Cumulatively, the discovery of resources in December 2017 were 742 million barrels of oil equivalent ("MMboe").
These resources were included in the contingent resource category indicating the amount of the initial hydrocarbon
volume. Thus, additional well and seismic data, also other data for advanced stage study before stated as exploration
status determination ("PSE") that can be developed are needed for subsequently submitted for plan of development
("POD").
CONTINGENT
RESOURCES 329.64
DISCOVERY IN 2017
Oil (MMbo)
Gas (MMboe)
412.71
Since 2002, exploration drilling done comprised of wildcat and delineation in a total of 1.016 wells resulted in the
discovery of 671 wells, with the success ratio of exploration drilling ranging from 39%-82%. The wells drilled and
completed in 2017 were 24 wells. Of 15 wells, 10 wells could prove the presence of hydrocarbon (success ratio of 67%).
EXPLORATION
DRILLING
120 0.9
2002 – 2017
0.8
NUMBER OF WELLS 100
VS SUCCESS RATIO 0.7
NUMBER OF WELLS
80 0.6
0.5
60
0.4
40 0.3
0.2
20
0.1
0 0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Discovery 38 28 35 21 40 40 40 51 47 55 65 53 47 27 23 10
Dry 37 26 29 33 40 33 30 23 33 26 31 22 17 6 10 5
Total 75 54 64 54 80 73 70 74 80 81 96 75 64 33 33 15
Success Ratio 51% 52% 55% 39% 50% 55% 57% 69% 59% 68% 68% 71% 73% 82% 70% 67%
RESOURCE
DISCOVERY
2,202.53
2002 – 2017 2,048 2,119
Resources 1,452.67
Post Drill Well
1,210
MMBOE
Exploration 1,208
1,048.82
956
780.53
625
572
468.48 431
428 407
239.3
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
From the above discoveries, there were 109 PSEs proposed with a total of 7,372 MMboe of resources recorded
since 2010.
EXPLORATION STATUS
DETERMINATION
25 2,500
2010-2017
20 2,000
MMBOE
15 1,500
PSE
10 1,000
5 500
0 0
2010 2011 2012 2013 2014 2015 2016 2017
PSE 13 10 14 17 10 11 11 23
Resources 299.97 513.72 453.88 577.65 1,549.44 1,240.99 616.91 2,119.52
UNCONVENTIONAL OIL AND GAS

As a manifestation of unconventional oil and gas CA PSCs, since the first CBM exploration well in 2009 until the end of
2017, 177 CBM exploration wells had been drilled. The drilling was distributed in 6 production basins in Indonesia, namely
Central Sumatra, Ombilin, South Sumatra, Kutai, Barito, and Asam Asam Basin with core hole, exploratory, production
test, and dewatering activities. The CBM exploration drilling activities had provided an overview of CBM's potential of
coal exploration targets in each basin as shown below:
RANGE GAS
NO BASIN TARGET FORMATION THICKNESS (m) DEPTH (m) CONTENT (scf/ton)
1 Sumatera Selatan Muara Enim 0.3 - 23 350 - 700 29 - 150
2 Kutai Balikpapan 0.3 - 8.3 300 - 1,300 150 - 350
3 Barito Warukin & Tanjung 0.5 - 24 400 - 700 60 - 300
4 Sumatera Tengah Sawah Lunto 2 - 6.5 300 - 700 20 - 200
5 Ombilin Sawah Lunto 0.5 - 3 300 - 800 10 - 20
6 Asam Asam Warukin 0.5 - 20 400 - 800 11 - 20
Furthermore, as a proofing effort, since 2010 the pilot well activities (production test and dewatering) to prove the flow
rate of CBM in some CBM CA PSCs, had provided an overview as a reference to field development planning.
The development of CBM will commence, this was evident with an exploration discovery that PSE had proposed in the
POD stage, i.e. Tanjung Enim CBM CA with resources for Area A and B was 230 Bscf.
ILLUSTRATION
CBM AND
UNCONVENTIONAL
OIL AND GAS
ACTIVITIES
Completed Drill
CBM Production
Unconventional Oil And Gas Resources Data Based On Joint Study and CBM Drilling.
OIL WET GAS DRY GAS DEC 2017

NO CONTRACTOR's NAME CBM CONTRACT AREA (MMBO) (TCF) (TCF) GIP (Mod)(TCF)
1 PT PERTAMINA HULU ENERGI METANA SUMATERA 3 CBM Air Benakat I 0.2377

2 PT PERTAMINA HULU ENERGI METANA SUMATERA 6 CBM Air Benakat II 0.2951
3 PT PERTAMINA HULU ENERGI METANA SUMATERA 7 CBM Air Benakat III 0.5128
4 PT ANUGRAH PERSADA ENERGI CBM Air Komering 1.18
5 PT BANGKANAI CBM PERSADA CBM Bangkanai I 2.53
6 PT BORNEO METANA ENERGI CBM Bangkanai II 3.02
7 PT BANGKANAI ENERGI RESOURCES CBM Bangkanai III 0.73
8 PT BANGKANAI JAYA PERKASA CBM Bangkanai IV 1.4
9 PT TRANSASIA ENERGY RESOURCES (BARITO CBM) LTD. CBM Barito 1.1
10 PT BELAWA ENERGI UTAMA CBM Belawa 2.34
11 PT ANDALAS METANA ENERGI CBM Belida 1.8
12 DART ENERGY (BONTANG BENGALON) PTE. LTD. CBM Bontang Bengalon 1.9
13 PT TRANSASIA CBM CBM Kapuas I 1.48
14 PT KAPUAS CBM INONESIA CBM Kapuas II 0.73
15 PT GAS METHAN UTAMA CBM Kapuas III 0.7
16 PT SATUI BASIN GAS CBM Kotabu 0.628
17 PT BINA MANDIRI ENERGI CBM Kuala Kapuas I 2.7
18 PT BINA MANDIRI ENERGI CBM Kuala Kapuas II 0.9
19 NEWTON ENERGY CAPITAL LTD. CBM Kutai 2.69
20 PT GAS METHAN ABADI CBM Kutai Barat 1.13
21 EPHINDO KUTAI NORTH INC. CBM Kutai II 3.28
22 SENYIUR CBM INC. CBM Kutai Timur 0.21
23 PT MEDCO CBM LEMATANG CBM Lematang 1.67
24 EPHINDO MEGA METHANA INC. CBM Melak Mendung I 2.78
25 PT TRISULA CBM ENERGI CBM Muara Enim 0.0975
26 PT PHE METANA SUMATERA 1 CBM Muara Enim I 3.95
27 INDO CBM SUMBAGSEL 2 PTE. LTD. CBM Muara Enim II 1.4
28 PT PHE METANA SUMATERA 4 CBM Muara Enim III 5.2
29 DART ENERGY (MURALIM) PTE. LTD. CBM Muralim 1.98
30 PT OGAN INTERIOR GAS CBM Ogan Komering 0.554
31 PT EAST OGAN METHAN CBM Ogan Komering II 0.046
32 INDON CBM LTD. CBM Rengat 1.8
33 VIRGINIA INDONESIA CO. CBM LTD. CBM Sanga-Sanga 7.164
34 SANGATTA WEST CBM INC. CBM Sangatta I 2.4
35 PT VISI MULTI ARTHA CBM Sangatta II 12.1
36 EPHINDO SEKAYU 2 INC. CBM Sekayu II 2.2
37 PT INTI GAS ENERGI CBM Sijunjung 1.45
38 PT PERTAMINA HULU ENERGI METANA SUBAN I CBM Suban I 0.162
39 PT PERTAMINA HULU ENERGI METANA SUBAN II CBM Suban II 0.1851
40 PT ASAM -ASAM METHAN GAS CBM Tanah Laut 3.8
41 DART ENERGY (TANJUNG ENIM) PTE. LTD. CBM Tanjung Enim 1.96
42 PT PHE METHAN TANJUNG II CBM Tanjung II 0.4
43 PT SANGA-SANGA ENERGI PRIMA CBM West Sanga Sanga I 1.5
TOTAL CBM RESOURCES 84.2922
1 PACIFIC OIL & GAS (MNK KISARAN) LTD Unconvent. Kisaran 289.33 15.46 0.46 15.92
2 BUKIT ENERGY RESOURCES PALMERAH DEEP PTE. LTD. Unconvent. Palmerah 1,360 14.4 14.4
3 BUKIT ENERGY RESOURCES SAKAKEMANG DEEP PTE. LTD. Unconvent. Sakakemang 2,400 28 28
4 PETROSELAT NC LTD. Unconvent. Selat panjang 0 8 8
5 PT PHE MNK SUMBAGUT Unconvent. Sumbagut 289.41 3.55 1.86 5.41
6 PT ADACO ENERGY Unconvent. Central Bangkanai 0 4.94 16.69 21.63
TOTAL UNCONVENTIONAL RESOURCES 93.36
D. HIGHLIGHT EVENTS, COOPERATION
WITH OTHER INSTITUTIONS &
REPRESENTATIVES ACTIVITIES
1. STRENGTHENING COLLABORATION WITH GOVERNMENT INSTITUTIONS

AND BUSINESS ENTITY
In 2017, SKK Migas signed a Memorandum of Understanding (MoU) and cooperation with several government
institutions and State-Owned Enterprises ("BUMN"). Collaboration with these institutions and business entity aims
to support upstream oil and gas operations in order to run faster and more efficiently. List of MoUs as follows:
• 8 March 2017, SKK Migas and

Directorate General of General Law
Administration ("Ditjen AHU"), the
Ministry of Justice and Human Rights
agreed to cooperate for the granting
of Fast Access to the Application of
Legal Administration System. The
MoU was signed by Chairman of SKK
Migas, Amien Sunaryadi, and Director
General of AHU, Freddy Harris. With
this MoU, SKK Migas can access
all data of limited liability company
in Indonesia owned by Ditjen AHU.
Rapid access to the application of
this legal entity system will strengthen the procurement process in the upstream oil and gas industry. This MoU
supports integrated portal data service provider system or Centralized Integrated Vendor Database ("CIVD"),
which has been developed by SKK Migas. Through this system, service providers or vendors simply follow the
verification in one PSC Contractor incorporated in the CIVD and if it has been verified, then the company can
follow the procurement in all PSC Contractors.
• 10 April 2017, a joint venture for
the assessment and application of
technology in the field of management
of upstream oil and gas activities
between SKK Migas and the Agency
for Assessment and Application of
Technology ("BPPT"). The MoU was
signed by Chairman of SKK Migas,
Amien Sunaryadi, and Head of BPPT,
Unggul Priyanto.
• 31 May 2017, SKK Migas and

Meteorology, Climatology and
Geophysics Agency (BMKG) signed an
agreement on the provision, utilization,
development of meteorological,
climatological and geophysical data
and information. Many data BMKG
services that can be utilized by
SKK Migas and PSC Contractors to
support upstream oil and gas activities,
including lifting, production, drilling,
and especially offshore projects.
BMKG services include weather
observations such as rainfall intensity,
wind speed and direction both on
land and at sea, sea wave height, tides, velocity underwater currents; geophysical and natural disaster data such
as earthquake information and tsunami potential; early hazard warning system related to oil spill; as well as the
dangers of forest fire fumes. On the other hand, BMKG can utilize offshore oil and gas facilities on floats, Floating
Production Storage Offloading ("FPSO") and Floating Storage Offloading ("FSO") vessels to place equipment/
sensors so that the accuracy of the data, especially the weather forecast can be more accurate. Also, BMKG
involvement as a form of national capacity empowerment, so in the future there will be no cooperation or work
contract with other parties related to meteorological, climatological and geophysical services in surveys, drillings,
projects, and operational activities.
• 6 June 2017, SKK Migas cooperated with the Center for Financial Transaction Reporting and Analysis ("PPATK")
to prevent the crime of money laundering in the upstream oil and gas activities. The MoU was signed by the
Chairman of SKK Migas, Amien Sunaryadi, and Head of PPATK, Kiagus Ahmad Badaruddin, at the PPATK office.
The scope of cooperation agreed in the MoU was in the form of information exchange, socialization, education and
training, research, staff assignment, and information technology development.
• 30 August 2017, the navigation of two special

airports for oil and gas was transferred to a Public
Company ("Perum") of the Indonesian Aviation
Navigation Service Provider ("LPPNPI"/AirNav
Indonesia) under the MoU on the Transfer of Flight
Navigation Operation at Matak and Pagerungan
Special Airports. This MoU was signed by Chairman
of SKK Migas, Amien Sunaryadi, and Director
of LPPNPI, Novie Riyanto, at SKK Migas office.
Previously, the navigation services of both airports
were implemented by the PSC Contractor. Medco
E&P Natuna Ltd used Matak Airport, Riau Islands,
and Kangean Energy Indonesia Ltd used Pagerungan Airport, East Java. In accordance with Government
Regulation Number 77 the year 2012, Operation of Aviation Navigation Service in Indonesia is conducted by
Perum LPPNPI. Referring to the Minister of Transportation Regulation No. 60 of 2016 on the Transfer of Flight
Navigation Service, it was also mentioned that Matak Airport and Pagerungan are part of the airport which
included as an airport whose navigation service will be taken over by LPPNPI.
• 13 October 2017, business synergy SKK Migas and Garuda Indonesia with
the signing of MoU by Chairman of SKK Migas, Amien Sunaryadi, and
Garuda's President Director, Pahala N. Mansury. This agreement aims
to maximize the use of domestic services owned by Garuda Indonesia as
well as to support upstream oil and gas business activities in Indonesia.
The scope of cooperation included the provision of passenger air transport
services, the provision of cargo services, the provision of aircraft charter
services, and other cooperation to be agreed in writing by both parties.
Other potential cooperation that can be explored by both parties was
catering services and aircraft maintenance facilities (turbomachinery).
In the last two years, the realization of expenditures of these PSC
Contractors for Garuda flight services amounted to approximately
Rp336 billion. In the next three years, this expenditure is expected to reach
Rp600 billion.
• 16 November 2017, the synergy of fiscal goods submission of upstream oil and gas. SKK Migas together with
Directorate General of Oil and Gas, Directorate General of Customs and Excise, and Administrator of Indonesian
National Single Window Portal ("PP INSW") signed the Integration of Information System Development
Agreement in the Framework of Provision of Fiscal Facilities on Import of Goods Operations of PSC Contractors
for Upstream Oil and Gas Business Activities. This cooperation makes the integration of information systems
between Ministries / Agencies so that the PSC Contractors only need to do one registration when submitting
applications using single submission system ("SSM") through PP INSW. This application starts from the
submission of Imported Needs Plan ("RKBI"), Plan for Import of Goods ("RIB"), up to Decree of Import Duty
Facility ("BM"), and Import Tax ("PDRI"). This system aims to create the governance of imports of operating
goods for upstream oil and gas business activities that are accountable, reliable, harmonious, and transparent.
2. COOPERATION WITH UNIVERSITIES

In 2017, SKK Migas had cooperation agreements with two universities to cooperate in the function of Tridharma
University in education, research, and community service.
The MoU with the Pertahanan University was signed by the Chairman of SKK Migas, Amien Sunaryadi, and Rector
of the Pertahanan University, General TNI. I Wayan Midhio M. Phil, at the Pertahanan University auditorium, Bogor,
on 17 April 2017.
Established by the government in 2009, Pertahanan University, which has 18 courses, created to design defense and
country’s defend concepts. Chairman of SKK Migas, Amien Sunaryadi, said that cooperation with the Pertahanan
University was very relevant to SKK Migas because energy issues are closely related to defense issues. He expected
the Pertahanan University academic community to conduct studies related to the oil and gas sector from the
perspective of national defense. The results of the research were expected to be useful for the handling of the
Contract Area of oil and gas at the border or that have the risk of the feud between fellow Indonesians.
In addition to the Pertahanan University, the MoU was signed with Patimura University ("Unpati"). The cooperation
was signed by Chairman of SKK Migas, Amien Sunaryadi, and Unpati Rector, M. J. Saptenno, at Unpati campus,
Ambon, on 15 August 2017.
Unpati Rector gave the highest appreciation to SKK Migas which had given the opportunity to participate in
upstream oil and gas activities, especially related to research and development of education. Moreover, Unpati has
just added a new study program that is geological engineering.
Upstream oil and gas industry has a very complicated aspect. Not only technical issues, but also legal, social, cultural,
and political issues. Especially in the Maluku region, the adat rights aspect becomes a challenge in itself. Unpati were
ready to help to undertake an in-depth study so that decisions taken in upstream oil and gas management in Maluku
can run smoothly and provide many benefits to the state and society.
3. STRATEGIC AGREEMENT WITH SOLAR TURBINES
SKK Migas initiated a strategic agreement with Solar Turbines International Company. The strategic agreement was
signed by the Chairman of SKK Migas, Amien Sunaryadi, and President Solar Turbines, Pablo Koziner, represented
by Solar Turbines Vice President Customer Services, Juan Rojas, at SKK Migas office on 8 November 2017.
The estimated savings from this strategic agreement in five years is estimated at US$40.67 million or around
Rp550 billion. This savings comes from discounts for the same purchase and maintenance for all PSC Contractors
in Indonesia. Solar Turbines is also responsible for spare parts management on the use of existing machinery in
Indonesia.
According to Chairman of SKK Migas, not only to get cost efficiency, most importantly this cooperation will increase
national capacity. SKK Migas encouraged Solar Turbines to create an investment roadmap in Indonesia to develop human
resource capabilities, build manufacturing facilities, and make Indonesia a market center for Solar Turbines in Asia Pacific.
In Indonesia, several turbomachinery brands are found, which include turbines and/or equipment with main turbine
drives, such as those found in compressors and pumps. Currently, Solar Turbines becomes the largest turbomachinery
equipment used in Indonesia with percentage reaching 81%. This agreement encourages the enhancement of
operational reliability and ensures after sales service support. Hopefully, unplanned shutdown can be minimized.
Before this strategic agreement, was signed often found some problems that appear in the field. For example, there
was a different discount between the PSC Contractor. It was admitted by President Director of PT Indoturbines,
Deny B. Kurnianto, the sole agent of Solar Turbines in Indonesia. According to him, the amount of discount varies
greatly depending on the number of purchases made by each PSC Contractor. The greater the purchases made, the
higher the discounts can be given. With this agreement, discounts are given equally to all PSC Contractors.
In addition to the amount of discounts, it was often found that inventory ordered from each PSC Contractor often
generated the additional cost of logistics and warehousing, and the function of equipment became less than the
maximum due to the time-consuming of spare parts waiting time. Not only that, one of the things that often hinder
the maintenance process of this turbomachineries because overhaul and maintenance activities for certain types of
machines still have to be done at Solar Turbines headquarters in the United States. This strategic agreement got a
good response from PSC Contractors. SKK Migas is considered
to be a work partner that is oriented towards cost efficiency and
decision-making speed in order to maintain Indonesia's oil and gas
production.
4. DEVELOP APPLICATION OF EOR TECHNOLOGY WITH SINOPEC
In order to support the Enhanced Oil Recovery ("EOR") program to be implemented domestically, SKK Migas
cooperated with Sinopec from China. This cooperation was set forth in a MoU signed by Chairman of SKK Migas,
Amien Sunaryadi, and President of Sinopec Oilfield Service of Shengli Corporation, Zhang Yu, conducted at
SKK Migas Office, on 15 December 2017.
Sinopec is one of the operators who have long experience in EOR field. Sinopec's experience of developing EOR since
1968 has made it possible to have a lot of data that can be used as a reference to determine the appropriate EOR
method applied to a well quickly. The experiences are indeed useful because it can save time until the implementation
of EOR. SKK Migas hopes this collaboration will bring an increase in national oil and gas production.
In the implementation of this MoU, SKK Migas directed that all PSC Contractors who will use EOR can prioritize
Sinopec as an operator to have cooperated. The aim is to speed up the start of EOR in Indonesia without having to
open tender for procurement because it will only waste time.
Currently, SKK Migas is

encouraging Pertamina EP to
conduct EOR. This MoU could
be the basis for the application
of Sinopec EOR technology in
Pertamina EP field candidates
which will be evaluated first.
So far there are 36 fields that
have the potential for EOR
implementation. The field is
the Pertamina EP, Medco, and
Chevron Contract Areas. All the
wells will be evaluated, and EOR
was targeted to start in one of the
wells by 2018.
5. MONITORING REALIZATION OF OBLIGATIONS EXPLORATION CAs
Since being initiated last February by the Deputy

Minister of Energy and Mineral Resources
("EMR"), Archandra Tahar, SKK Migas
re-organized the Progress Report based on the
direction of Deputy Minister of EMR related to
the Fulfillment of the Firm Commitment in the
Exploration Contract Area 2017 at the SKK Migas
Office. The event, held four times periodically
in 2017, was attended by representatives of
Exploration PSC Contractors, both conventional
and unconventional.
This meeting aimed to collect the commitment of PSC Contractors to remember the exploration contract will
expire. The dialogue was not to provide punishment, but rather to stimulate contractors to immediately complete the
exploration after being given an extension of contract time and incentives that will be presented by the Ministry of
EMR and the SKK Migas after the meeting. The goal was none other than for exploration activities to run smoothly
and productively.
Since the initiation of this event, most of the CA has

finally made progress in exploration activities. Starting
from February 2017, 51 conventional oil and gas CAs
that has not fulfilled its commitment is now some the
status has changed. Nine CAs were forced to terminate
because they were considered not to comply with the
contract timeframe, and one CA was POD. Meanwhile,
from 26 unconventional oil and gas CAs, recorded in
December 2017 four termination CAs, three CAs that
had been able to resume operations, and the rest were
still experiencing some obstacles.
According to monitoring results, internal factors were still the most significant obstacle faced by PSC Contractors.
Matters related to these internal constraints include priority activities strategies, contractor portfolio, financial, and
operator changes. The total firm commitment that has not been done by conventional oil and gas CAs reached
US$510.58 million and US$105.55 million for unconventional oil and gas CAs.
6. TWO ISO FROM BRITISH STANDARDS INSTITUTION

SKK Migas obtained two ISO certificates from the British Standards Institution ("BSI"). The two certificates
were ISO 9001:2015 on the implementation of the Quality Management System and ISO 27001:2013 on the
implementation of the Information Security Management System with the certification areas of the three units of
procurement services ("ULP") at SKK Migas-Headquarter, Kalimantan-Sulawesi Representative, and South Sumatera
Representative. Certification submitted by BSI Managing Director, Yuan Bambang Handayana, to Chairman of
SKK Migas, Amien Sunaryadi, at SKK Migas office, on 19 June 2017.
This certification aimed to improve the service quality of procurement processes within the SKK Migas and to
improve the ability of personnel in implementation in accordance with applicable business processes. In addition,
improving the organization's performance in meeting business requirements, standards, and compliance with
regulatory requirements, and ensuring the readiness of all resources to do identified business processes.
Certification was awarded to companies and institutions that have clear procedures, business processes, and key
performance indicators ("KPI"). Institutions that received ISO 9001:2015, currently numbered around 10,000 in
Indonesia. While ISO 27001:2013 about 100 companies and institutions that obtained the certificate.
7. SKK MIGAS SOCIALIZING PLAN OF MANAGEMENT SYSTEM
IMPLEMENTATION FOR BRIBERRY 37001
SKK Migas held socialization of the implementation plan of ISO 37001:2016 which is an international standard
for Anti Bribery Management System. The socialization attended by the PSC Contractors and the providers of
goods and services involved in the upstream oil and gas industries was conducted at the office of SKK Migas,
on 19 September 2017.
ISO 37001 is an anti-bribery management system, a system designed to instill an anti-bribery culture within an
organization and implement appropriate controls, which in turn increases the chances of detecting bribery, and
reduces incidents from the beginning. Start in October 2016, this system can be implemented by organizations or
business entities, both large and small, engaged in the public sector, and the private sector.
Management SKK Migas was committed to implementing ISO 37001:2016 and certified to obtain the ISO by 2018.
Currently, management continues to communicate the 4 No culture (No Bribery, No Kick-Back, No Luxurious
Hospitality, and No Gift) to the internal SKK Migas. SKK Migas hopes that PSC Contractors and goods and service
providers in the upstream oil and gas industries can follow the steps of SKK Migas in implementing the anti-bribery
management system ISO 37001:2016.
8. INTRODUCING THE
UPSTREAM OIL AND GAS
INDUSTRIES TO CAMPUS
Introducing the upstream oil and gas industries
to the young generation, SKK Migas and PSC
Contractors held the Upstream Oil and Gas
Goes to Campus 2017 program. Through this
program, SKK Migas and PSC Contractors
held a public lecture and discussion on current
issues of upstream oil and gas industries.
This program was conducted in 42 campuses

across the Indonesian archipelago since
13 November 2017 and ends on 20 December
2017. These activities were intended as a
media of information sharing from industry
players as well as absorbing ideas from
academics. The Speaker who fill the public
lecture were representatives of SKK Migas
and PSC Contractors operating in Indonesia.
Through this activity, SKK Migas and PSC

Contractors can also receive many inputs from
the academic community that can be used to
improve the upstream oil and gas industry in
the future. This activity was welcomed by the
participants, especially the students who said
this activity provides provision for students
to be able to convey about the upstream
oil and gas industry to the community more
accurately. According to the participants,
the event provided a new understanding of
SKK Migas and the upstream oil and gas
industry role.
9. NEW ERA MANAGEMENT OF LNG BADAK PLANT
Starting from 1 January 2018, SKK Migas will have control on operations and costs on Liquefied Natural Gas
("LNG") at the Badak, Bontang, East Kalimantan. The transfer of control from Pertamina Joint Management
Group ("JMG") to SKK Migas entered a new phase with agreement on the terms of the parties.
The agreement was signed by Chairman of SKK Migas, Amien Sunaryadi with related parties, witnessed by President
Director of State Asset Management Agency, Ministry of Finance, Rahayu Puspasari at SKK Migas office on
22 December 2017. The parties that signed the agreement among others Contractors in Tengah, Sanga-Sanga,
East Kalimantan, Makassar, Rapak, Muara Bakau, and Mahakam CAs, as well as PT Badak Natural Gas
Liquefication ("Badak NGL").
The transfer of control roles was following the recommendation of the Supreme Audit Agency ("BPK"). The goal,
for optimization and efficiency where for 2018, LNG production from Badak NGL reaches 50% of the national
production with the value of LNG sales transactions processed at the Badak NGL refinery is estimated to reach
Rp32.5 trillion.
SKK Migas expected good commitment and cooperation from all gas producers and Badak NGL to ensure the
continuity of the LNG business in accordance with the agreement for the achievement of production targets and state
revenues by the State Budget.
10. REPRESENTATIVE ACTIVITIES
A. STAKEHOLDER FORUM AND SOCIAL RESPONSIBILITY OF SUMBAGUT AREA
One of the contributions given by the upstream oil and gas industry to the community in the form of a
social responsibility program ("TJS"). It was implemented with the aim of realizing the independence of the
community and ensuring the smooth operation of Upstream Oil and Gas Industry through the synergy of
academicians, business community, community, non-governmental organizations ("NGOs"), and governments.
Communities were involved in some number of SRP ranging from education, economics, social, health, to
infrastructure. In addition to SRP, the contribution of upstream oil and gas industry was also in the form
of revenue sharing ("DBH"), regional tax and regional retribution ("PDRD"), participating interest ("PI")
10% for region, labor, partnership pattern, gas supply, and the use of PSC Contractor facilities. To convey
the message, SKK Migas Representative of North Sumatra ("Sumbagut") conducted the 2017 Stakeholder
Forum activities on 12-13 December 2017 at Aryaduta Hotel Pekanbaru with the theme "Building Community
Independence and Smooth Upstream Oil and Gas Industry through Synergy of Academic, Business World,
Society, and Government".
The 2017 Stakeholder Forum Activities was opened directly by Deputy Business Support SKK Migas,
M. Atok Urrahman, and attended by various speakers from SKK Migas, Ministry of ESDM, Ministry of
Internal Affairs, Ministry of Village Development of Underdeveloped Regions and Transmigration, Ministry of
Marine Affairs and Fisheries, academics, and the Government of Riau Province. This activity was attended by
approximately 100 participants consisting of SKK Migas, PSC Contractors in Sumbagut and stakeholders in the
regions covering the Provinces of Aceh, North Sumatra, West Sumatra, Riau and Riau Islands.
In addition to the exposure from speakers, PSC Contractors also share the success in implementing community
empowerment programs and display the product scouted by PSC Contractors. In the discussion, there were
several issues in the management of SRP, including concerning governance, transparency, stakeholder’s size and
shape and involvement. There were three pillars in building synergy namely stakeholders (interests, positions,
and authority), system, and program clarity.
Stakeholder Forum was expected to

make people and local government
understand the contribution of
upstream oil and gas industry and can
work together in synergy to unify the
vision to support the smooth operation
of upstream oil and gas in the region.
This is so that the upstream oil and gas
industry activities provide benefits either
directly or indirectly to the community
and local and national governments.
B. SKK MIGAS CLOSING 20 ILLEGAL OIL WELLS
VISIT OF SKK MIGAS

– PSC CONTRACTOR
REGENCY OF MUBA
DISTRICT TO
POLDA SUMSEL
25 SEPTEMBER 2017
SKK Migas Representative of South Sumatera Area ("Sumbagsel") with PSC Contractors of South Sumatera
("Sumsel") (ConocoPhillips, PT Pertamina EP Asset 2 and Medco E&P Indonesia) paid a courtesy visit to
the South Sumatra Regional Police ("Polda") on 25 September 2017. It was held at the Regional Police Chief
Meeting Room ("Kapolda") of South Sumatra. The visit was led by Deputy Business Support of SKK Migas,
M. Atok Urrahman, accompanied by Expert Advisor to the Head of SKK Migas for Security Affairs, Anang
Pratanto, Head of SKK Migas Representative of Sumbagsel, Tirat Sambu Ichtijar, Vice President of Business
Support, Budi Arman, and Specialist Primary Business Support, Susana Kurniasih, along with leaders of
ConocoPhillips, PT Pertamina EP Asset 2, and PT Medco E&P Indonesia.
In addition to maintaining the link with the South Sumatra Police Chief, Inspector General Police Zulkarnain
along with his staff, through the visit SKK Migas intended to convey the problem of illegal oil drilling activities
that occur in the region of South Sumatra. SKK Migas hopes South Sumatra Police and staff to support efforts
to solve the problem of illegal oil drilling in South Sumatra. The handling of the illegal drilling problem in South
Sumatera has reached the Coordinating Ministry for Political, Legal and Security Affairs and was the joint
responsibility of the President's mandate for zero illegal drilling by the end of 2017.
A brief and intimate meeting was immediately followed up by the South Sumatra Regional Police and
SKK Migas-PSC Contractor of Musi Banyuasin Area ("Muba") to coordinate with the South Sumatra
Provincial Government ("Pemprov") for closure to take place immediately. On November 21, 2017, the
Integrated Team formed by the Governor of South Sumatra took over 20 oil wells of PT Pertamina EP Asset
1 Field Ramba in Mangunjaya, Babat Toman Sub-district, Muba District drilled by illegal miners. Chairman
of the Takeover and Closure Integrated Team, AKBP Rahmat Hakim, who was also Chief of Police Resort
("Kapolres") Muba reported that 17 wells were pending from a total of 104 wells. While the remaining three
wells were old wells that have been cemented but re-unloaded by illegal miners.
Controlling and cementing of oil wells illegally seized by miners in Mangunjaya assisted by 466 Muba Police
officers, Muba Military District Command, Civilian Police Unit, State Attorney, and SKK Migas - PT Pertamina
EP Asset 1 Field Ramba. From the total of 20 wells cemented successfully, the details of eight wells cemented
Team I consisting of wells MJ 01, MJ 04, MJ 65, MJ 58, MJ 34, MJ 72, MJ 73, and MJ 35. While Team II
succeeded in cementing six wells, i.e. MJ 21, MJ 13, MJ 78, MJ 55, MJ 60, and MJ71. The remaining six wells
cemented by Team III consist of MJ 75, MJ 69, MJ 100, MJ 76, MJ 36, and MJ44.
CLOSURE OF
20 ILLEGAL WELLS
IN MUBA REGENCY
C. FORUM OF SECURITIES AND EXPLOSIVES 2017 SKK MIGAS-PSC CONTRACTOR
OF JABANUSA AREA
Contract area operated by PSC Contractor was a vital object that has strategic value for the country.
Therefore, SKK Migas as an entity formed by the government as supervisor and controller of upstream oil
and gas activities gave special attention to the security in operation area of PSC Contractor. In addition to
the safety factor, explosive instruments used in the process of exploration and exploitation of upstream oil
and gas were also a vulnerability that was closely related to the security itself, so that the use and inventory
of the explosives must be considered carefully by the various parties involved. SKK Migas Representative
Office of Java, Bali and Nusa Tenggara ("Jabanusa") saw the importance of synergy between security and
explosives management. So, SKK Migas Jabanusa Regional Representative held a Coordination Meeting of
Forum Securities and Explosives IV Year 2017 on 18-19 October 2017 in Malang and followed by about 200
participants from SKK Migas, PSC Contractors, TNI, Police in Jabanusa.
Coordination meeting opened by Deputy Business Support SKK Migas, M. Atok Urrahman, took the theme
of "Synergy of Security and Explosive Management on Upstream Oil and Gas Activities". In this coordination
meeting, SKK Migas Jabanusa Regional Representative invited the Indonesian Armed Forces ("TNI") Army
and Marine and Police of the Republic of Indonesia ("Polri") in the upstream oil and gas operations area of
Jabanusa.
Present in the Forum of Securities and Explosives 2017 SKK Migas-PSC Contractors of Jabanusa Region
among others, there are Chief Staff of Military Area ("Kasdam") V / Brw, Brigadier General TNI Widodo
Iriansyah, Kasdam IV / Diponegoro, Brigadier TNI S Fadhilah, Commander of Military Resort ("Danrem") 082/
CPYJ Colonel Cavalry ("Kol Kav") Gathut Setyo Utomo, Danrem 083 / Bdj Kol Inf Bangun Nawoko, Danrem
084/BJ Kol Kav M.Zulkifli, Military Distress Commander ("Dandim" ) 0818 Lieutenant Colonel (Letkol)
Arm Muridan, Dandim 0833 Lieutenant Colonel Nurul Yakin, Staff Operations Staff Chief of Naval ("Kasal")
Lieutenant Colonel Jani Sujani, Water and Air Police Coordinator ("Polairud") Security Maintenance Agency
("Baharkam") Commissioner Police ("Kombes Pol") Sukadji, Security Coordinator Vital Object Polda East
Java Pol Kombes Bambang Ramelan.
This activity was an excellent to step to always improve coordination and communication to create good synergy
between SKK Migas-PSC Contractors, TNI, and Polri because this activity was done as a seriousness of
SKK Migas-PSC Contractors, TNI, and Polri to support upstream oil and gas activities as a vital and strategic
sector. With the creation of synergy among stakeholders in the field of security was expected to provide a
positive climate for PSC Contractors to work and increase oil and gas production of Indonesia.
D. SKK MIGAS KALSUL REALIZE TJS BOOK
SKK Migas launched a Book of Potential Social Responsibility Program ("TJS") Upstream Oil and Gas
Industry of Kalimantan and Sulawesi, at the Office of SKK Migas, on December 20, 2017. The launch was
conducted by Deputy Business Support SKK Migas, M. Atok Urrahman. On that occasion, there were about 80
participants who joined in Public Relations Forum of SKK Migas-PSC Contractors.
The making of this book departed from the needs of the upstream oil and gas industry to document the various
activities of TJS that have been done in shape, the beneficiaries and their impacts. With an editorial team from
the National University, the publication of the book was a long process of various activities related to TJS in
upstream oil and gas industry in Kalimantan and Sulawesi.
The book answers the implementation of TJS program in upstream oil and gas activities in Kalimantan and
Sulawesi as well as a benchmark of how the TJS program successfully brought upstream oil and gas industry
to the community. Through TJS programs, communities gain strength and empowerment with a range of
knowledge and skills, so that the benefits of the presence of the oil and gas industry near the community site
gave major economic and social impacts. This excellent and positive step can be an inspiration from other
representatives to be able to create similar work in order to become a proper documentation and reporting tool
to stakeholders, on the hard work of some number of PSC Contractors.
The book can be used as a communication tool for upstream oil and gas industry with its stakeholders, so
that they understand what has been done and the real impact of upstream oil and gas industry. The book
was expected to be a means of efforts to increase the independence of the community, as empowerment and
strengthening competence that can provide benefits for the wider community in the upstream oil and gas
industry operations as well as in Indonesia.
E. SKK MIGAS PAMALU SUCCESSFULLY HELD WORKSHOP OPERATION 2017

SKK Migas Representative of Papua and Maluku Region ("Pamalu"), successfully held activity forum and
workshop for 2017, for PSC Contractors in Makassar on 9-10 May 2017. The event opened by Head of
Representative of SKK Migas Pamalu, Enrico CP Ngantung focus in the discussion of joint facility utilization,
how to minimize unplanned shutdown and improve operating performance in workover and well services
("KUPS"). These were the topics of discussion on the first day, an activity that needs to be done along with
the decline in world oil prices in an effort to reduce operating costs.
Various materials delivered among others topic of facility utilization along with material transfer as one of
POD optimization and operational cost, which was delivered by Production Operation Division of SKK Migas.
The second topic concerning optimization of production facility maintenance activities to suppress unplanned
shutdown brought by the Project Management and Maintenance Division of SKK Migas, while the third topic
discussed the debottlenecking gas plant submitted by Exploration Planning Division of SKK Migas.
In the forum, PSC Contractor PT Pertamina EP Asset 5 Papua Field presented their flagship program with
the topic of sago palm oil utilization as an oil spill absorber at Klamono Field, Sorong District, while PSC BP
Tangguh Contractor presented TAR-8 Planning to support BP Tangguh's operational activities in LNG Site,
Bintuni Bay District. On the second day, the event continued with an operation workshop where submitted
material from the Division of Drilling Operation and Well Services SKK Migas on the description of the work
program of PSC Contractor exploitation titled Eastern Indonesia: Challenge and Opportunity submitted by
Exploration Planning Division of SKK Migas.
The results of the forum and workshop concluded that the concept of facility sharing agreement ("FSA") and
material transfer needs to be applied as it can reduce investment and operating costs. PSC Contractors need to
optimize the excessive assets to maximize state revenues. Besides, many PODs or fields in the Pamalu region
have entered the final phase of field development, requiring more intensive exploration activities in an effort to
increase oil and gas production reserves.
82 SKK MIGAS ANNUAL REPORT 2017 | MAJOR PROJECTS
03
M AJOR
PROJECTS
MAJOR PROJECTS | SKK MIGAS ANNUAL REPORT 2017 83

MAJOR PROJECTS OF
UPSTREAM OIL AND
IDD
GAS UP TO 2027 AS JANGKRIK BANGKA: Onstream August 2016
OF 31 DECEMBER 2017 Onstream May 2017 94.7 MMscfd, 3,887 bopd (average in 2017)
600 MMscfd, GENDALO-GEHEM: Revised POD 1
4,000 bpd Gendalo Hub: 700 MMscfd, 20,000 (Q4-2022)*
ANDE ANDE LUMUT Gehem Hub: 420 MMscfd, 27,000 (Q2-2023)*
BISON IGUANA
GAJAH PUTERI EPC Tender
Production
Construction Stage (Q1-2021): 20,000 bopd BADIK & WEST BADIK
Production FEED Tender
(Q3-2019): MATINDOK
Production (Q3-2020):
Bison: 45 MMscfd, Onstream May 2017
Iguana: 45 MMscfd, 60 MMscfd,
3,000 bopd 65 MMscfd
Gajah Puteri:
73 MMscfd
TANGGUH TRAIN-3
Construction Stage
Production
(Q2-2020):
3.8 mTPA (700 MMscfd),
JAMBU AYE UTARA
Tender FEED PREP
Produksi (Q2-2022):
108 MMscfd, 3,300 bopd
L-PARIGI (Platform)
FEED Tender JAMBARAN
Production (Q2-2021) TIUNG BIRU
60 MMscfd Gas Price Discussion
Construction Stage MADURA BD MDA & MBH ABADI
Production (2020): Pre-FEED
Onstream June 2017 Construction Stage
330 MMscfd Beginning of
Capacity: 6,600 bopd, Production (Q2-2019):
(Gross Volume); Production &
110 MMscfd 175 MMscfd
190 MMscfd Capacity (TBD)*
(Netto Gas)
Projects that are categorized as large-scale projects have a significant project value and production capacity, SKK Migas has
delegated one task force unit of project acceleration (“UPP”) for each mega project in order to support the implementation
of those projects within the time and criteria that have been outlined. The mega projects are Jambaran Tiung Biru Project
in Bojonegoro, East Java by PT Pertamina EP Cepu (“PEPC”) Contractor; Indonesia Deep Water Development (“IDD”)
Project in Makassar Strait, East Borneo by Chevron Makassar Limited (“CML”) Contractor. Abadi Project in Arafura Sea,
Maluku by Inpex Masela Ltd. Contractor; Jangkrik Project in Makassar Strait, East Borneo by eni Muara Bakau B.V.
Contractor; Tangguh Train-3 Project in Bintuni, West Papua by BP Berau Ltd. Contractor.
There are other main projects as equally significant as the mega projects and managed by Function Management Project
SKK Migas are Pakugajah Development Field Project in East Sumatera by PT Pertamina EP Contractor; Madura BD
Project and MDA & MBH Project in Madura Strait, East Java by Husky-CNOOC Madura Ltd. Contractor; Donggi
matindok Project in Central Sulawesi by PT Pertamina EP Contractor; Bison Iguana Gajah Puteri Project in Natuna,
Riau Islands by Premier Oil Natuna Sea B.V. Contractor.

A. JAMBARAN TIUNG BIRU PROJECTS
PT PERTAMINA EP CEPU
Located in the district of Bojonegoro, East Java Province, the development of Jambaran Tiung Biru ("JTB") Unitization
Gas Field (Jambaran Gas Field – Block Cepu and Tiung Biru Field – Block PEP), processed by PT Pertamina EP Cepu
(“PEPC”) according to SKK Migas Agreement Number 0071/SKKO000/2013/S1 dated 13 February 2013 as regards to
Plan of Development (“POD”). The development of JTB Unitization Gas Field that is integrated with the development
of Cendana Block Cepu Field, and ESDM Letter of Ministry Number 1581/13/MEM.M/2013 dated 28 February 2013
has pointed PEPC as the operator of JTB Unitization Gas Field.
PIPELINE SALES CASE

350
RAW PRODUCTION
AND SALES GAS
300 PSC Lease
Expiration
250 JAMBARAN - TIUNG BIRU

MMSCFD (AVERAGE PER YEAR)
200
150
SALES GAS
100
CO2 VENT
50
0
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
Early Civil Work has started in January 2016, but the winning tender for EPC Gas Processing Facilities work was not
announced until January 2017 due to economy crisis with the decrease of the worldwide selling price of oil and natural
gas. JTB Project is expected to produce as large as 315 MMscfd within an expand of 15 years and has naturally
experiencing a decrease in production as shown in the above field production JTB profile.

JTB gas contains high impurities such as + 0,5% H2S, + 32% CO2, COS, M-Mercaptan, water, and condensate.
The multiphase fluid from wells will be transferred to the processing facility through gathering lines with the operational
pressure of 605 psig and the temperature of 186oF for the initial production then increased to 235oF for the next
production. Then, the multiphase liquid will be separated from liquid through slug catcher. The leftover liquid will then
be separated again through an inlet knockout drum and transmitted through a water separator. The natural gas will be
transported to the dew point control unit after the drying process with the injection of ethylene glycol (“EG”). After the
drying process, the gas is chilled in between stages of water, condensate and vapor phases with cold separator for all
three phases. After the separation, the gas fluid is sent to the Acid Gas Removal Unit (“AGRU”).
AGRU is designated for acid gas separation

such as H2S, CO2, COS and Mercaptan by
using Sulfinol-X license process from Shell.
The clean gas produced by AGRU is then
transferred to the export system through
metering system in North Banyu Urip facility
ready to be sold to the buyers.
JTB project ground-breaking ceremony was

conducted on 25 September 2017 by the
Ministry of Energy and Mineral Resources and
expected to start producing by 2019.

B. INDONESIA DEEPWATER
DEVELOPMENT PROJECT
CHEVRON MAKASSAR LIMITED
The Indonesian Deepwater Development ("IDD") Project is located in Makassar Strait, which are Ganal Contract Area
("CA"), Rapak CA, Makassar Strait CA and Muara Bakau CA (unitization). There are five fields which will be developed
from those four CAs, namely Bangka, Gehem, Gendalo, Maha and Gandang Field. The drilled production from the wells
in those five fields is to be streamed through an integrated two Floating Production Unit ("FPU") Hubs, i.e. Gehem Hub
and Gendalo Hub, and an additional of Bangka Subsea Tie-back in West Seno. Gas from FPU will be streamed through
a pipeline to fulfill industrial needs in East Borneo towards LNG Bontang Plant to be process further as LNG. Production
from Bangka Field (onstream August 2016) has yielded 94.7 MMscfd of gas and 3,887 bpd of condensate (average of
2017). Meanwhile, Gehem Hub is projected to produce as much as 420 MMscfd of gas and 27 Mbpd of condensate.
Gendalo Hub will yield 700 MMscfd of gas and 20 Mbpd of condensate. After the implementation of FEED in 2014 and
leading to EPCI bidding, there was an increase in investment costs. Therefore, the government has decided to focus on
developing Bangka Field first while the development of the other four fields will be done after the revision of POD I IDD.
Bangka Field was developed by drilling 2 (two) production wells (Well of Bangka-6 and Bangka-7), modification of
existing West Seno facility, subsea completion and tie-in to West Seno facility. Bangka-6 and Bangka-7 wells were
completed at the end of July 2016, and modification of existing West Seno facility was completed in mid of August
2016.
Bangka Field started to operate on 16 August 2017 and has been commercially accepted in Terminal Santan on
17 August 2017 with an initial production of 20 MMscfd of gas and 60 bpd of condensate. Average production of
Bangka Field in 2016 was 28.6 MMscfd gas and 1,569 bpd of condensate, meanwhile, the average production in 2017
was 94.7 MMscfd of gas, 85.7 MMscfd above target and 3,887 bpd of condensate, 3,670 bpd above target.
On October 2016, Chevron has stated that will continue to be committed in developing IDD Project and SKK Migas
appreciates the commitment as well as the production of Bangka Field and for Chevron to deliver an alternative IDD
Project development with a more efficient cost as suggested in the revised POD I IDD.

The discussion of Revised POD I IDD was carry on 28 February 2017 and Chevron performed the stakeholder
engagement IDD Project. On May 2017, another discussion for preparing Revised POD I IDD was conducted, the plan
for joint study under joint development with eni Muara Bakau dan then extended with a discussion between SKK Migas’
management with Chevron and eni Muara Bakau’s management.
AFE Pre-FEED for Revised POD I IDD has been approved by SKK Migas on August 2017 for 2 (two) study field
development scenarios as follows:
1. Back Fill to FPU Jangkrik
2. Build Shallow Water Platform (“SWP”)
The winner of the Pre-FEED subsea and top side contract was announced on December 2017 and expected to start
implementing at the beginning of 2018.

REVISED POD I IDD TIMELINE: Target Actual Forecast
2016 2017 2018 2019

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
ACTIVITIES
Phase 2A Phase 2B Phase 3
IDD Conditions Precedent Approvals

Jan 2017
Confidentiality Agreement
Engineering Study Agreement (ESA)
Pre FEED Contract
Pre FEED Tender
Pre FEED Execution
POD Document Preparation
Pre-POD Discussion
Mid of 2018
POD Submission
Q3 - 2018
IDD PRODUCTION PROFILE
30
PRODUCTION OF
CONDENSATE 25
20
MBPD
15
Bangka
10
Gendalo
Gehem
Maha 5
Gandang
Secondary Reservoirs 0
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
1.000
PRODUCTION OF 900
GAS IN THE INLET OF 800
BONTANG 700
600
MMCFD
500
400
Bangka
Gendalo 300
Gehem 200
Maha
100
Gandang
Secondary Reservoirs 0
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2020 Makassar Strait 2027 2028 2032 Muara Bakau

PSC Expired Rapak Ganal PSC Expired
PSC PSC
Expired Expired

C. ABADI LNG PROJECT
INPEX MASELA LTD.
Abadi Project is a development project of the Abadi gas Field by the Inpex Masela Ltd. operator that is located in
Arafura Sea at a depth of 600-800 m below sea level. The production of natural gas from Abadi Field is to fulfill the
needs of domestic and export demands of gas. Abadi gas Field is located in the Masela CA that has been signed by the
Government on 16 November 1998.
The Plan of Development (“POD I”) for Abadi Field was approved by the Government of the Republic Indonesia on
6 December 2010. In this POD I the Government has agreed to the use of production facility, Floating LNG (“FLNG”),
for the development of Abadi Field. The FLNG has a capacity of 2.5 metric ton per annum ("Mtpa") of LNG and
8,400 bpd of condensate for the next 30 years of production, with an approximately 4.6 trillion cubic feet ("Tcf") of gas
and 91.02 million barrel oil ("Mbo") of condensate reserves are exhausted. The estimated total cost of investment for
POD I is US$5 million and the operation cost is US$4 million.

On 23 April 2015, Inpex Masela Ltd. submitted a proposal for the Revised POD I with the scenario of FLNG 7.5 Mtpa.
The result was authenticated by the reserved certification of Lemigas (Government Bodies for Hydrocarbon Certification)
that stated additional gas reserves from Masela Gas Field of 10.37 Tcf from 90% P1 is significant enough to fulfill the
scenario needs of FLNG 7.5 Mtpa with a production 1,200 MMscfd of gas until the year 2048.
In 2016, the debate between developing onshore and offshore plant was finally decided by the President of Indonesia to
use onshore scheme on 23 March 2016. An official letter by Ministry of Energy and Mineral Resources was issued to
confirm this decision on 31 March 2016 and a letter to Inpex from SKK Migas on 1 April 2016.
With Government support to expand Abadi field, in 2017 Inpex Masela Ltd. begun a preparation to implement Revised
POD I, there are as follows:
1. Procuring Pre-Feed Study, Geohazard and Metocean survey, and the study of Environmental Impact Assessment on
onshore scheme for the development of Abadi Field.
2. Evaluating alternative locations for potential onshore plants while the final decision will be decided during Pre-FEED.
3. Supporting Lemigas to review Multiplier Effect on onshore scheme for the Development of Abadi Field and also
Ministry of Manpower to research the demand for manpower in Masela Block.
Aside from the above activities, to ensure a favorable relationship with the stakeholders in Maluku Province, Inpex Masela
has continued to attend Social Responsibility ("SR") meetings and activities in the year of 2017. They include a training
for Cultivation of Seaweed, Organic Agriculture System, Ocean based Processed Products, Ikat Weaving, Reading,
Writing and Counting (Calistung), English and Honoring Scholarship.
Together with the stakeholders,

SKK Migas will continue to
coordinate in 2018 for Abadi
Field development project to run
effortlessly as projected schedule
that will create a multiplier effect for
National interest.

D. TANGGUH TRAIN-3 PROJECT
BP BERAU LTD.
Located in Bintuni Bay, West Papua, Tangguh Train-3 is one of the largest oil and gas sector project in Indonesia with
the capacity of 3.8 Mtpa and also one of the 2 (two) LNG projects in the world that performed final investment decision
(“FID”) in 2016. This proven the level of investor’s trust on oil and gas projects in Indonesia. This project is significant
for Indonesia since 75% of Tangguh Train-3’s production was contracted by PLN to generate electricity in Indonesia
and with four local financial institutes financing the Tangguh expansion project, and they are BNI, Mandiri, BRI, and
Indonesia Infrastructure Finance (“IIF”).
Tangguh Expansion Scope Schematic
WDP ONSHORE GAS

PRODUCTION
FACILITIES
POD I (TRAIN-1&2)
VRD PLATFORM
VRA PLATFORM
VRB PLATFORM
Ø 24" -
15 km
VRF PLATFORM
km
km
18
" - 19
"-
24
Ø 24
Bintuni Bay, West Papua

km
2
8,
Offshore
-1
"
24
Shore
Ø
Initial Development Phase Facilities

Further Development Phase Facilities
Existing Facilities
Existing Pipeline
LNG Tank 1 & 2
ORF T3 ORF T1 & T2 Proposed Pipeline
LNG Tank 3
COMBO DOCK LNG T1 & T2
LNG T3
Pipeline NPS (inch) Length (km)
WDA-ROA 24 15
ROA-ORF 24 13,5
VRF-ORF 24 18,2
WDP-ORF 20 35
OFA-ROA 16 11,6

Tangguh Train-3 has been appointed as one of National Strategic Projects on 16 June 2017, through President’s
Regulation Number 58 of 2017, regarding the Changes in President’s Regulation Number 3 of 2016 on expediting the
Implementation of National Strategic Projects. The overall projects in 2017 are mostly fabrication of platform works
(“WDA & ROA”) as well as the preparation of the land for building plants.
Collectively, the progress of expanding LNG Tangguh Plant for offshore area was 45.33% until the end of December
2017. The performance of this progress is higher than the initial prediction which was estimated at 44.99%. The platform
fabrication was done at PT Saipem Indonesia Karimun Yard, Karimun Regency, Riau Islands Province. The structure
fabrication of jacket and deck began in May 2017. This activity was marked with the pre-fabrication preparation of
horizontal, diagonal and vertical bracings and framing bracing from the jacket structure, and also the pre-fabrication of
plate girder, node, primary beam and haunch from the deck structure. On June 2017, the welding of plate girder for the
main deck was finished. At the end of December 2017, WDA jacket, WDA Topside, ROA Jacket, and ROA Topside
were installed.

The onshore activity started with a
geotechnical or topography survey in January
2017. The preparation of the land had also
started in January 2017 by logging trees in
the surrounding area of LNG Tangguh Plant
Expansion project.
Until the end of December 2017, the onshore

progress of LNG Tangguh has reached
21.91%.

Achievements Estimated Milestones
in 2015-2017 in 2018-2020
Onshore Dual Final Investment Onshore Main MCHE Main refrigerant

FEED Completes Desicion ("FID") mobilization to site piperack arrival at compressor
Pre-commissioning Train-3 ready First LNG
started site package arrival
started for start-up
at site
2015 2016 2017 2018 2019 2020
Piling Start Pipeline WDA drilling ROA drilling

activity concrete installation completed completed
Onshore Dual Offshore Offshore Platforms
started pouring completed
FEED Completes first installed and ready
at T3
steel cut, for handover to
platform Drilling
fabrication
started

E. JANGKRIK PROJECT
ENI MUARA BAKAU
The Development of Jangkrik and North East Jangkrik Fields are integrated into one project called Jangkrik Complex
Project. It contains three contract packages for production facilities such as EPCI-1, Floating Production Unit (“FPU”),
EPCI-2, Risers & Flowlines Installation (“RFI”) and EP-3, Subsea Production System (“SPS”).
During 2017, Jangkrik project was on Onshore Construction and Hot Tap, Offshore Hook-Up, and Commissioning
completion progress. Jangkrik project finished ahead of schedule. First Gas completed at the end of May 2017, earlier
than the predicted which is the end of July 2017. Gas from Jangkrik Complex Field was streamed to East Kalimantan
System on 29 May 2017, and then condensate started to stream on 27 July 2017. A performance test for 450 MMscfd
capacity and the handover of production facility from the Project’s person in charge to the Operation’s person in charge
was done on 27 July 2017. At the same time, the Certificate of Appropriate Use of Installation for 450 MMscfd capacity
was obtained from Directorate General of Oil and Gas on 4 October 2017. To support Jangkrik Complex Project, the
licensing team of eni Muara Bakau has successfully obtain all licenses needed for project and drilling activities from
authorities in charge without disrupting the project schedule.
To fulfill the requirement of High Heating Value as proposed on Western Buyers’ Contract, an injection of LPG (C3/
C4) was necessary at Bontang LNG Plant. LPG Injection Facility was successfully done by PT Badak on July 2017 which
includes an installation of new pipes for LPG injection from Module 1 to Train E/F/G/H in Module 2 and reactivation of
LPG Off Spec Line from LPG Tank to Module 1.
The total of Bontang LNG that has been lifted from Muara Bakau CA in 2017 are 31 cargos which include 26 cargos
from the current contract (14 cargos to Pertamina for Tranche A-B and 12 cargos to eni S.p.A. for Tranche C), also
5 cargos through spot selling (1 cargo to Singapore BP, 2 cargos to Mitsui & Co Ltd. and 2 more cargos to PPT Energy
Trading Co. Ltd.). Meanwhile BRC Condensate has been lifted as much as 141 Mbbls on 23 December 2017 and 309
Mbbls Senipah Condensate on 26 December 2017.

JANGKRIK FPU
TOWED TOWARDS
MAKASSAR STRAIT
FPU IS PROCESSING
SUBSEA UMBLICAL
RISER FLOWLINE
(“SURF”) HOOK-UP

ORF PLANT AREA
THE INAUGURATION
OF GAS PRODUCTION
FACILITY IN JANGKRIK
FIELD BY THE
MINISTRY OF ENERGY
AND MINERAL
RESOURCES AND THE
CHAIRMAN OF SKK
MIGAS

F. PAKUGAJAH FIELD
DEVELOPMENT PROJECT
PT PERTAMINA EP
The development of Pakugajah Field is located in two locations, Pakugajah and Kuang Fields. Geographically situated in
two Districts, Muara Enim and Ogan Komering Ulu, approximately around 50 km away from Prabumulih.
Pakugajah Field Development Project was implemented under the Integration Approval of POD Pakugajah Complex
Phase-1 and POFD Kuang Phase-2 within the following:
• The drill of 10 development wells and 19 workover activities.
• The construction of permanent production facility including the construction of Pakugajah Gas Station with the
capacity of 45 MMscfd and Kuang Gas Station with the capacity of 25 MMscfd.
• The construction of 12” trunkline from Pakugajah Gas Station to Merbau as far as 23 km.
• The use of CO2 Removal on existing Merbau Gas Station.
Gas from Pakugajah Gas Station will be streamed to Merbau Gas Station for CO2 removal process using Merbau Gas
Station CO2 Removal facility. After that, the natural gas is streamed back to Pagardewa SP as the metering point and
ready to be streamed to the buyers.
Pakugajah Project onstream in May 2017 and has been handover from Pertamina EP Project Team to Pertamina EP
operation team on 10 September 2017. This project contributes an additional of 45 MMscfd to gas production.
PAKUGAJAH GAS
STATION FACILITY

KUANG GAS STATION
FACILITY
THE INAUGRATION OF
PAKUGAJAH

G. MADURA BD AND MDA
& MBH PROJECTS
HUSKY-CNOOC MADURA LTD.
Madura BD Field includes Madura Strait Block area located in Madura Strait, approximately 50 km from Pasuruan with
sea depth of about 55 m. In accordance with the Revision of POD I BD Field signed in July 2008, BD Field Development
is expected to increase the supply of gas to East Java about 442 billion cubic feet ("Bcf") and 18.7 MMbbls condensate
with plateau flow rate of 100 MMscfd.
Production of hydrocarbon from Well Head Platform (“WHP”) BD will be streamed through flowline to FPSO for a
separation process. The processed gas will be streamed using export pipeline to Gas Metering Station ("GMS") in
Pasuruan, and then will be distributed to the buyers. Condensate and sulphur from the separation result will be channeled
from FPSO to a shuttle tanker and sulphur barge.
Madura BD Project consists of EPCI and FPSO Projects. The range of work of EPCI Madura BD Project includes
WHP, export pipeline, and GMS. In July 2017 BD Field has been streaming gas to one of the gas buyers, namely PGN
and streaming gas to another buyer namely Inti Alasindo Energy starting in December 2017. The scope of work of FPSO
Project includes converting hull tanker into FPSO, along with the installation of the topside production facility, mooring
job, and hook up in the Madura Strait.
JACKET LAUNCH

SAIL AWAY JACKET
PROCESS
Meanwhile MDA-MBH Field (also included in Madura Strait Block territory located in Madura Strait beach) is located
at around 200 km in the east side of Surabaya, and around 75 km southeast of Madura Island, approximately at the
depths of 100 m below the surface of the oceans. According to MDA-MBH Fields POD signed on January 2013, the
development of BD Field can hopefully increase the gas supplies to East Java around 380 Bscf with 120 MMscfd flow
rate, for gas buyers such as PT Petrokimia Gresik, PLN, and Pertagas.
The production scenario plan is to stream gas approximately 28 km from WHP MDA and MBH to the Floating
Processing Unit (“FPU”) through flexible riser between WHP MBH and FPU. Processed gas from FPU is then streamed
through subsea pipeline that is connected through subsea hot tap process to East Java Gas Pipeline’s ("EJGP”)
28 inches pipe then to be distributed to the buyers in East Java.
MDA & MBH projects consist of EPCI and FPU projects with EPCI MDA & MBH projects that covers the fabrication
and installation of WHP MDA, WHP MBH, subsea pipeline, and subsea hot tap to subsea EJGP pipeline.
The MDA & MBH Fields Development Project was still ongoing throughout 2017. Some progress that were completed
in 2017 are MDA Jacket, MBH Jacket, subsea pipeline, and subsea hot tap to EJGP. Meanwhile, FPU-related work has
started in August 2017. The target is to begin streaming gas from MDA and MBH Field in Q2 2019.

H. DONGGI MATINDOK PROJECT
PT PERTAMINA EP
The development of Matindok Gas Field is based on the discovery of gas in Matindok Area specifically Donggi,
Matindok, Maleoraja, Minahaki, Sukamaju, and Mentawa Fields with 0,7 TcF (GCA certification of EUR) total of reserve
and the need of gas utilization from Matindok Area for LNG and Power Plant.
Matindok Area POD (Donggi, Matindok, Maleoraja, and Minahaki Gas Fields to supply gas to LNG plant) is approved
by BPMIGAS on 24 December 2008. With the additional reserve from Matindok Fields, the total adds up to 852,75 Bcf
and 105 MMscfd of gas production from Matindok Area. The amendment covered in Revision POD I has been approved
by BPMIGAS on 22 September 2010.
GAS SUPPLY SCHEMATIC FROM

MATINDOK AND SENORO AREA
Donggi Matindok
Production: 8 wells (DNG-1/2/3/5/6/7/8/9) Production : 7 wells (MTD-2/3/4/5/6/7/8)
Water Injc: 1 well DNG-4 Water Injc : 1 well MLR-2ST
25
DONGGI M ATINDOK MMSCFD
PLN
CPP CPP
25 MMSCFD = 20 Matindok +
50 MMSCFD = 50 DSLNG 55 MMSCFD = 35 DSLNG +
5 Senoro
20 PLN
Donggi EPC Production Facility Matindok ECP Production Facility

50 MMSCFD
55 MMSCFD
55
Onstream: April 2016 Onstream: April 2017
MMSCFD PAU
SENORO 55 MMSCFD = 55 Senoro
JOB P-MTS
335
SENORO MMSCFD DSLNG
CPP
TIP 1 TIP 2 335 MMSCFD = 50 Donggi +
35 Matindok + 250 Senoro
310 MMSCFD = 55 PAU
+ 5 PLN + 250 DSLNG 310 MMSCFD
CENDANAPURA

From the scheme above, it can be illustrated the purpose of developing this field is to monetize the gas from Matindok
Area of 105 MMscfd (net) with the allocation of gas sales as follows:
a. As a gas provider of 85 MMscfd along with 250 MMscfd of gas from Senoro Area, PSC Contractor JOB Pertamina
Medco Tomori Sulawesi (“JOB PMTS”) to LNG PT DSLNG plant as the buyer.
b. As a gas provider of 20 MMscfd along with 5 MMscfd of gas from Senoro Area, PSC Contractor JOB PMTS to PLN
as the buyer.
For the purposes as mentioned above, currently being built production facilities in Matindok Area with the division-based
region as follows:
a. Donggi Field Production Facility (”Donggi CPP”) with 60 MMscfd design capacity to process gas from Donggi
and Minahaki Fields.
b. Matindok Field Production Facility (“Matindok CPP”) with 65 MMscfd design capacity to process gas from
Matindok and Maleoraja Fields.
Matindok Field can reach its highest production of 116 MMscfd for 12 years, after that the production will continue to
decline until it reaches abandonment pressure after 20 years of production. Condensate production will be starting along
with gas production and will peak at 643 bopd.
Gas production from Matindok Area joins with gas from Senoro Area at Tie-in Point 1 (“TIP 1”) and Tie-in Point 2
(“TIP 2”). The condensate generated from both production facilities will be channeled to the production facility Senoro
Field Contractor of PSC JOB PMTS.
Donggi project has onstream on April 2016, with the timeline of implementation of the work as follows:
Contract Award Contract Onstream Handover of

22 Nov 2012 Amendment 26 April 2016 Facilities
• Implementation of EPC • Contract Amendment • Streaming Gas sales • Mechanical Completion

PT Rekayasa Industri 1 on the 28 September to DSLNG on 26 April was done on 22 June
• Target completion is on 2015 due to changes in 2016 2016
31 December 2015 impurities. • Handover of facilities
• Contract Amendment from project function to
2 due to additional time operational was done on
for completion of work. 1 September 2016
• Hydrocarbons streamed
with the average
flowrate gas sales of
54 MMscfd
• Installed capacity is
60 MMscfd

While Matindok Project has onstream on 17 April 2017, with the timeline of implementation of the work as follows:
Contract Award Onstream The handover of

Construction
3 April 2014 17 April 2017 facilities 1 Nov 2017
• Implementation of EPC • Contractor managers’ • Gas sales streamed to • Operation Test

consortium PT Wijaya poor performance DSLNG done on 17 April performed on
Karya (Persero) and • Constrained by social 2017 with a Gas Feed of 16 October 2017 at gas
PT Technip Indonesia and security troubles 21.13 MMscfd and Gas feed rate of MMscfd
• Target completion is on • Warehouse fire that Sales of 13.6 MMscfd with gas sales of
28 Maret 2016 caused delays Sales Gas 47 MMscfd during
• Condensate Production 7x24 hours
that exceeded the • Ramp up test to
mitigation design to 65 MMscfd along with
be able produce gas gas sales to 55 MMscfd
accordingly within 2x24 hours.
• Handing over the project
facilities to operations on
1 November 2017
Donggi and Matindok Gas Development

Project ("PPGM") is crucial for the oil
and gas industry in Indonesia and will
play an important role in maintaining and
strengthening the position of Indonesia as the
largest LNG exporting country in the world.
PPGM development will increase the sector
contribution of oil and gas in donating foreign
exchange for the country and possibly for
substitution some of the domestic fuel.

I. BISON IGUANA GAJAH PUTERI
PROJECT PREMIER OIL
NATUNA SEA B.V
The scope of this project is an integration of the development of Bison, Iguana, and Gajah Puteri Fields into one entity
of Engineering, Procurement, Construction and Installation contract.
The synergy of field development aims to optimize and streamline the cost of field development. The following scheme
illustrates the integration development of the entire Bison, Iguana, and Gajah Puteri Fields development project.
Bison, Iguana, and Gajah Puteri Fields are planned onstream in Q3 2019.
SCHEMATIC DIAGRAM AGX

OF BISON, IGUANA, Anoa SSIV at AGX
West Lobe
AND GAJAH PUTERI
PROJECTS. Hot tapTee for future Tie in
Pipeline - 10"x 42 km
Existing Pipeline Anoa FSO

Existing Umbilical
Hot tapTee for
Future Pipeline - BI Future Lembu Tie in
GB CPP
Future Umbilical - BI
Future Pipeline - GP GB WHP
Future Umbilical - GP Gajah Puteri
Existing WNTS Trunk Line
Pelikan WHP
14" Pipeline
from Kakap
Umbilical 21 km
Umbilical & Pipeline - Naga WHP

Bison
8" x 8 km
Iguana
Umbilical & Pipeline -

8" x 6 km
Description Bison Iguana Gajah Puteri
Production Facility Capacity (MMscfd) 45 45 73

The scope of each project is described as below:
FIELDS SCOPE OF WORK
Bison • Development of one subsea well

• Construction of new 8” pipeline as far as +/- 8 km to Wellhead Platform (“WHP”) Pelikan that already exists
for later (along with gas from Pelikan wells) streamed to Gajah Baru Central Processing Platform (GBCPP)
through WHP-GBCPP Pelikan pipeline
• Installation of WHP Pelikan subsea umbilical to the Bison subsea wells
• Installation of Umbilical Termination Assembly (“UTA”) in Bison ILM
• Modifications in WHP Pelikan facility including the installation of deck extension in cellar deck, in addition of
Hydraulic Power Unit (“HPU”), Electric Power Unit (“EPU”), Uninterruptible Power System (“UPS”), and tie-
in spool from Bison line (top of riser) to the production manifold
• GBCPP modifications include the addition of Subsea Control Unit (“SCU”), Integrated Control and Safety
System (“ICSS”) in the GBCPP control room, the addition of transformer also tie-in electrical system and
instrumentation
Iguana • Development of one subsea well

• Construction of new 8” pipeline as far as +/- 6 km to manifold in Bison
• Installation of UTA in PLEM Iguana
Gajah Puteri • Development of one subsea well and possibly one additional subsea well depending on the performance of the
first well
• Construction of new 10” pipeline as far as +/- 41 km to Anas Gas Export (“AGX”) Platform that already has
processing and sales need
• Installation of microwave data link from AGX Platform to GBCPP
• Installation of new Subsea umbilical as far as +/- 21 km from WHP Naga to Gajah Puteri subsea well
• Installation of UTA in Gajah Puteri PLEM
• Installation of new transformer in GBCPP to ensure the production of Gajah Puteri well secured when there is
planned/unplanned shutdown in GBCPP

04
EMPOWERING
NATIONAL
C APA CITY
108 SKK MIGAS ANNUAL REPORT 2017 | EMPOWERING NATIONAL CAPACITY

EMPOWERING NATIONAL CAPACITY | SKK MIGAS ANNUAL REPORT 2017 109
A. OIL PRODUCTION
OPTIMALIZATION FOR
DOMESTIC PLANTS
Based on Regulation of Minister of Energy and Mineral Resources No. 17 of 2017, SKK Migas has an obligation to
manage the upstream oil and gas business that can provide the greatest benefits for the prosperity of the people. In
carrying out these tasks, SKK Migas prioritizes the supply of oil, especially to domestic plants. During 2017,
SKK Migas has carried out commercialization activities as follows:
A. CRUDE OIL AND CONDENSATE COMMERCIALIZATION

SKK Migas in appointing sellers is divided into two major commercialization schemes, namely the commercialization
scheme of Election In Kind and the commercialization scheme of Election Not To Take In Kind ("ENTIK").
1. Election In-Kind Scheme is a commercialize scheme whereby SKK Migas chooses to take the State in kind as
mentioned in Production Sharing Contract ("PSC") Chapter VI on Refund of Production Operation and Handling
Costs. Crude Oil/Condensate commercialized under the Election in Kind commercialization scheme for 2017 are:
List of commercialized Crude Oil or Condensate with commercialization scheme of Election In-Kind:
PERIODE
NO PSC CONTRACTORS CRUDE OIL/CONDENSATE
ELECTION IN-KIND
1 PetroChina International Geragai Crude Oil, Makmur Crude Oil, Geragai Condensate and Semester I 2017
Jabung Ltd. Makmur Condensate Semester II 2017
2 VICO Indonesia Semester I 2017

Badak Crude Oil and Bontang Return Condensate (“BRC”) Semester II 2017
3 Chevron Makassar Limited West Seno Crude Oil and BRC Semester I 2017
Semester II 2017
4 Total E&P Indonesie Bekapi Crude Oil, Badak Crude Oil, Handil Mix, Senipah Semester I 2017
Condensate and BRC Semester II 2017
5 Chevron Indonesia Co. Attaka Crude Oil, Sapinggan Yakin Mix, BRC, and Sapi Semester I 2017
Condensate Semester II 2017
6 Inpex Corporation Bekapai Crude Oil, Handil Mix, Senipah Condensate and BRC Semester I 2017
7 Inpex Corporation Bekapai Crude Oil, Handil Mix, Badak Crude Oil, Senipah Semester II 2017
Condesate and BRC

PERIODE
ELECTION IN-KIND
8 JOB Pertamina - Talisman Jambi Merang Condensate and Grissik Mix Semester I 2017
Jambi Merang Semester II 2017
9 BP Berau Ltd Tangguh Condensate Semester I 2017

Semester II 2017
10 BP Muturi Holdings BV Tangguh Condensate Semester I 2017

Semester II 2017
11 BP Wiriagar Ltd Tangguh Condensate Semester I 2017

Semester II 2017
12 ConocoPhillips (Grissik) Ltd Grissik Mix Semester I 2017

Semester II 2017
13 Inpex Corporation Attaka Crude Oil Semester I 2017

Semester II 2017
14 JOB Pertamina - Medco Senoro Condensate Semester I 2017

E&P Tomori Sulawesi Semester II 2017
15 Mubadala Petroleum Senipah Condensate Semester I 2017
16 Pearl Oil (Sebuku) Limited Senipah Condensate Semester II 2017
17 PT Chevron Pacific Indonesia SLC and Duri Crude Oil Semester I 2017
Semester II 2017
18 Premier Oil Natuna Sea B.V. Anoa Crude Oil Semester I 2017
Semester II 2017
19 PT SPR Langgak SLC Crude Oil Semester I 2017

Semester II 2017
20 ConocoPhillips Indonesia Inc. Belida and Belanak Crude Oil Semester I 2017
Ltd.
21 Medco E&P Natuna Ltd Belida and Belanak Crude Oil Semester II 2017
22 EMP Malacca Strait SA Lalang Crude Oil Semester I 2017

Semester II 2017
23 PetroChina International Bangko Crude Oil Semester I 2017

Bangko Ltd. Semester II 2017
24 PT Medco E&P Indonesia Kaji, Tabuhan and Tanjung Laban Crude Oil Semester I 2017
Semester II 2017
25 PT Medco E&P Indonesia Matra and Pendopo Crude Oil Semester I 2017
Semester II 2017
26 Saka Indonesia Pangkah Ltd. Pangkah Crude Oil Semester I 2017

Semester II 2017
27 PC Ketapang II Ltd. Ketapang Crude Oil Semester I 2017

Semester II 2017
28 Santos (Sampang) Pty. Ltd. Oyong Crude Oil Semester I 2017

Semester II 2017
29 ExxonMobil Cepu Ltd. Banyu Urip Crude Oil Semester I 2017

(EMCL) Semester II 2017

PERIODE
ELECTION IN-KIND
30 BOB PT Bumi Siak Pusako - SLC Crude Oil Semester I 2017

Pertamina Hulu Semester II 2017
31 Star Energy (Kakap) Ltd. Kerapu Crude Oil Semester I 2017

Semester II 2017
32 CNOOC SES Ltd. Cinta and Widuri Crude Oil Semester I 2017
Semester II 2017
33 JOB Pertamina – PetroChina Mudi and Sukowati Crude Oil Semester I 2017
East Java Semester II 2017
34 PT Pertamina Hulu Energi Cinta (NWC) Crude Oil, Arjuna Crude Oil and Kresna Condensate Semester I 2017
ONWJ Ltd.
35 PT PHE West Madura Madura Crude Oil Semester I 2017

Offshore Semester II 2017
36 Petrogas (Basin) Limited Walio and Wakamuk Crude Oil Semester I 2017
Semester II 2017
37 JOB Pertamina – PetroChina Matoa and Melsu Crude Oil Semester I 2017
Salawati Semester II 2017
38 Chevron Rapak Ltd West Seno Bangka Mix and BRC Semester I 2017
Semester II 2017
39 Husky-CNOOC Madura Limited BD Field Condensate Semester II 2017
40 eni Muara Bakau Jangkrik Project Condensate and BRC Semester II 2017
2. ENTIK Scheme is a commercialize scheme where the commercialization of State Section of Crude Oil and
Condensate ("MMKBN") shall be conducted by the PSC Contractors on their Contract Areas. This matter
is based on PSC Chapter VI concerning Return of Operation Cost and Production Handling stating that the
Contractor is authorized by SKK Migas and obliged to market all crude oil and/or condensate that is produced
and stored from Contract Area.
In the year 2017, the concept of ENTIK Procedure has been updated which regulates the following:
a. The separation of arrangement regarding payment mechanism for Pertamina and Non-Pertamina buyers.
b. Use of payment agent as the payment mechanism for Non-Pertamina buyer and terms of exclusion for the use
of payment agent.
c. Details on the maturity of payment for lifting through barge and truck.
d. Details of the seller's obligations if the buyer of MMKBN is Pertamina in the case of the Crude Oil/
Condensate sale and purchase agreement between the seller and Pertamina has been signed.
e. New ENTIK procedure templates for PSC that are Gross Split based, include:

- The billing mechanism for fees and/or liability arising in connection with the sale of MMKBN.
- The payment period is 30 days after the last date in the lifting month.
f. New ENTIK procedure templates for POD-based PSC, including reporting arrangements realized production
and lifting of crude oil and/or condensate (joint report) as the basis of lifting reconciliation between
contractors and SKK Migas as the base for billing.
There are 12 procedures for ENTIK, which has been finalized in 2017, namely:
1 PHE Siak SLC Crude Oil
2 PHE NSB Arun Condensate
3 PHE NSO Arun Condensate
4 PHE Golden Spike Hitam Water
5 PHE Ogan Komering Serdang and Guruh Water
6 PHE Jambi Merang Jambi Merang Condensate
7 PHE Kampar Lirik Crude Oil
8 PHE Tuban East Java Mudi Mix
9 PHE ONWJ Ardjuna Crude Oil and Kresna Condensate
10 PHE WMO Madura Crude Oil and Madura Condensate
11 PHE Tomori Senoro Condensate
12 PHE Salawati Walio Mix and Meslu Crude Oil

B. INDONESIAN CRUDE PRICE ("ICP")
Indonesian crude price ("ICP") formula for the period of July 2016 until June 2017 and the period of July 2017 until
June 2018 are as follows (Reference from Ministry of Energy and Mineral Resources Decree No. 6171.K/12/MEM/
2016 and No. 2556 K/12/MEM/2017):
Formula ICP = Dated Brent + Alpha
During 2017, there are several temporary ICPs that have been adjusted and set to become ICP official, namely:
1. Banyu Urip Crude Oil (Ministry of Energy and Mineral Resources Decree No. 2334 K/12/MEM/2017 and
No. 4028 K/12/MEM/2017).
2. Sampang Condensate (Ministry of Energy and Mineral Resources Decree No. 1760 K/12/MEM/2017).
3. Ketapang Crude Oil (Ministry of Energy and Mineral Resources Decree No. 1066 K/12/MEM/2017).
4. Tangguh Condensate (Ministry of Energy and Mineral Resources Decree No. 1067 K/12/MEM/2017).
For the current ICP, 6 (six) ICPs has been set for individual formula, both for newly manufactured crude oil/
condensate and adjustments of ICP individual formulas for existing crude oil/condensate, namely:
New crude oil/condensate:
1. BD Karapan Condensate (Ministry of Energy and Mineral Resources Decree No. 0450 K/12/DJM.B/2017).
2. Jangkrik Condensate (Ministry of Energy and Mineral Resources Decree No. 0334.K/12/DJM.B/2017).
Crude oil/condensate in production:

1. Jambi Merang Gas Condensate (Ministry of Energy and Mineral Resources Decree No. 408.K/12/DJM.B/2017).
2. Sapi Condensate (Ministry of Energy and Mineral Resources Decree No. 405.K/12/DJM.B/2017).
3. Bangko Crude Oil (Ministry of Energy and Mineral Resources Decree No. 407.K/12/DJM.B/2017).
4. Semberah Crude Oil (Ministry of Energy and Mineral Resources Decree No. 406.K/12/DJM.B/2017).
During 2017 several ICPs have been abolished for crude oil/condensate:
1. Oseil Product Crude Oil ("HFSO") (Ministry of Energy and Mineral Resources Decree No. 0427.K/12/
DJM.B/2017)
2. Sepanjang Crude Oil (Ministry of Energy and Mineral Resources Decree No. 0427.K/12/DJM.B/2017)
3. North Pagerungan Crude Oil (Ministry of Energy and Mineral Resources Decree No. 0427.K/12/DJM.B/2017).
4. Oyong Crude Oil (Minister of Energy and Mineral Resources Decree No. 0427.K/12/DJM.B/2017).
5. Ex LPG Plant Kaji Condensate (Ministry of Energy and Mineral Resources Decree No. 0427.K/12/
DJM.B/2017).
6. Sangatta West CBM Crude Oil (Ministry of Energy and Mineral Resources Decree No. 0458.K/12/
DJM.B/2017).

C. REALIZATION OF CRUDE OIL/CONDENSATE LIFTING
The realization of crude oil and condensate lifting during the period of January to December 2017 is as big as 293.39
million barrels ("MMbbls") or the equivalent of 803.81 thousand barrels of oil per day ("Mbopd"). The realization of
a monthly lifting can be seen on the graph as follows:
GRAPHIC OF
14,000
REALIZATION
OF CRUDE OIL/ 12,000
CONDENSATE 10,000
LIFTING BETWEEN
8,000
JANUARY-
MBBLS
DECEMBER 6,000
OF 2017
4,000
2,000
-
Domestic-PSC Contractor Portion 4,030.32 3,447.69 3,341.04 4,262.01 4,715.58 5,334.50 4,700.05 4,396.21 4,800.85 5,056.61 4,677.96 6,396.65
Export-PSC Contractor Portion 7,395.20 8,419.67 11,826.86 5,803.34 7,997.51 8,948.58 5,992.03 8,250.52 10,552.66 8,972.81 8,984.10 8,399.73
Domestic-State Portion 10,938.17 10,022.37 11,389.87 12,415.73 12,104.31 12,267.93 12,212.05 12,060.63 9,089.60 10,600.41 10,448.80 12,003.09
Export-State Portion - 100.04 - 90.11 75.49 165.94 48.94 193.84 45.46 149.95 26.52 238.58
COMPOSITION OF
34.61%
REALIZATION OF CRUDE
46.20%
OIL/ CONDENSATE
LIFTING BETWEEN
JANUARY-DECEMBER
OF 2017
Domestic-PSC Contractor Portion

0.39%
Export-PSC Contractor Portion
Domestic-State Portion
Export-State Portion
18.80%
Utilization of crude oil and condensate of the State’s portion is being applied to the maximum effort to support
domestic refinery needs (feed). Realization of domestic lifting destination in 2017 reached 65% of the total lifting,
consisting of 46.20% to the State’s portion and 18.80% to the Contractor's portion. The domestic lifting for the
Contractor’s portion is a lifting made through pipes and shipment, primarily done by PT Pertamina Hulu Energi and
PT Pertamina EP.

The realization of Contractor's export lifting destination is only 34.61% of total lifting because there is no sales
agreement with Pertamina. SKK Migas, through shipping coordination meeting and other coordination meetings,
continue to advise and appeal to the Contractor to conduct business to business negotiations with Pertamina in an
effort to support the fulfillment of Pertamina's refinery needs.
Crude oil/condensate of the State’s portion that is exported to the amount of 0.39% of total lifting,
including Senoro Condensate, Oseil Crude and the Crude Gulls. In the type of crude oil, SKK Migas conducts
commercialization scheme of ENTIK, considering that the State’s portion still has the FTP and/or Pertamina
cannot process these type of crude oil.
For Senoro Condensate, Pertamina cannot process it because of its high mercaptan content. For Oseil Crude type,
Pertamina cannot process the oil because of high sulfur content, while the Crude Camar, the volume of State’s
portion for one year is under 60 Mbbls and lifting must be done by using tanker, so it is not economical if Pertamina
does lifting.
The largest export destination for crude oil and condensate for January-December 2017 is Thailand with total
volume of 17.9 MMbbls followed by Singapore 12.4 MMbbls, Malaysia 12.1 MMbbls, USA 12.0 MMbbls, Japan at
11.9 MMbbls, Australia at 10.7 MMbbls, China at 10.4 MMbbls, Taiwan at 7.5 MMbbls, and other countries at
7.8 MMbbls.
LIFTING EXPORT Thailand 17.41%
VOLUME Singapore 12.05%
PERCENTAGE Malaysia 11.79%
PER DESTINATED USA 11.67%

COUNTRY BETWEEN Japan 11.59%
JANUARY- Australia 10.40%
DECEMBER OF 2017 China 10.16%
Taiwan 7.35%
Others 7.58%
D. WORK PROGRAM
SKK Migas has issued 2 (two) Working Guidelines (Pedoman Tata Kerja-PTKs) in 2017 that are expected to
provide guidance detailed and clear in terms of commercialization of crude oil and condensate, namely:
1. PTK-064 concerning Lifting of Crude Oil and/or Condensate in Upstream Oil and Natural Gas Business Activities.
2. PTK-065 concerning Appointment of Seller and Selling of Crude Oil and/or State Condensate. The socialization
for both TODs has been implemented in December 2017.

B. INCREASING GAS SUPPLY
TO MEET DOMESTIC NEEDS
On average, gas supply for domestic needs has increased by 8% from 2003 to 2017. As of 31 December 2017, the
utilization of natural gas for domestic purposes averaged 3,875 Bbtud (58.6%), above the export volume of 2,736 Bbtud
(41.4%).
Currently, for the policy of allocation and utilization of natural gas refers to Minister of Energy and Mineral Resources
Regulation No. 06 of 2016 on Provisions and Procedures for the Determination of Allocation and Utilization of Gas and Gas
Prices, whereby the Government seeks to ensure the efficiency and effectiveness of gas availability as fuel, raw materials or
other purposes for domestic needs to the optimal utilization of gas orientation.
The allocation and utilization of gas is based upon the national energy policy while taking into consideration of the public
interest, the state interest, the Indonesia Gas Balance Sheet, the reserves and opportunities of the gas market, the
availablity of infrastructure as well as in the accordance with the National Gas Transmission and Distribution Network
Master Plan and/or the field economy of the oil and gas reserves allocation.
INCREASING GAS
5,000
SUPPLY TO MEET 4,397 4,416
4,202 4,336
DOMESTIC DEMANDS 4,500 4,078
4,008 3,882
3,820 3,997
4,000 3,775 3,681 3,631 3,774 3,632 3,875
3,500
3,550
3,000 3,379 3,402
BBTUD
3,323 3,267 3,237

Export
3.090
2,500 2,913 2,860
Domestic
2,527 2,736
2,000 2,341
1,500
1,513
1,480 1,466
1,000
500
-
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

GAS UTILIZATION IN Electricity 14.09%
INDONESIA YEAR 2017 Fertilizer 10.64%
Industry 23.18%
Lifting Oil 2.73%
City Gas 0.06%
BBG Transportation 0.09%
Gas Pipe Export 12.04%
Export LNG 29.37%
Domestic LNG 5.64%
Domestic LPG 2.17%
THE REALIZATION
OF DISTRIBUTING 2,000
GAS PIPELINE 1,800
1,600
DOMESTICALLY
1,400
IN 2017
1,200
BBTUD
1,000
800
600
400
200
0
ELECTRICITY FERTILIZER INDUSTRY LIFTING OIL CITY GAS BBG TRANSPORTATION
Realization 931 703 1,532 180 3,88 6,09
Based on GSA 1,180 822 1,901 233 4,58 19,40

The largest share of domestic gas allocation is used for industrial, electrical, and fertilizer purposes, which is
approximately of 48% from the total gas allocation.
THE REALIZATION OF
LNG LIFTING 2012-2017 1,000
900
AS OF JANUARY 2018
800
700
600
TBTU
500
400
300
200
100
0
2012 2013 2014 2015 2016 2017
Domestic 41 68 87 114 162 147
Export 949 888 834 811 748 689
The realization of LNG lifting for domestic needs shows an upward trend every year. The increasing domestic needs
can be met from the operation of several LNG regasification terminals in Indonesia. It started from the operation of
FSRU Nusantara Regas in Jakarta Bay in 2012, then FSRU Lampung in 2014, Arun Regasification in Aceh in 2015, and
the last, Small Scale Regasification Plant in Benoa, Bali began operations since 2016. Meanwhile, LNG exports have
decreased. In addition, to support the increasing demand for domestic LNG consumption, LNG exports decreased due to
the natural decline of production, expiry of existing export contract, and availability of new LNG supply from other global
sources.
The Government is committed to continuously improve the allocation of LNG for domestic needs. On the other hand,
SKK Migas hopes that LNG cargo absorption by domestic buyers can be optimized. By 2017, allocations are set
Government as much as 61.9 cargo standards. Delivery of LNG cargoes from Bontang and Tangguh Refineries for
domestic needs only realized for 52.6 cargo standards or approximately 85% from the allocated cargo standards. This
number is down from the year 2016 as much as 89% of the domestic allocation due to the reduction in absorption by
PLN, Pertamina, and PGN.
Upstream oil and gas industries also supply LPG for domestic needs. All LPG is sold to PT Pertamina (Persero) to
meet domestic demand for LPG. Since 2014, LPG supply from upstream oil and gas continues to experience a decline.
In 2017, the realization of domestic LPG supply fell by almost 40%. This event is due to cessation of supply from LPG
Belanak Plant operated by Medco Natuna in Riau Islands and Santan Terminal operated by Chevron Indonesia Co. in
East Kalimantan. In addition, most of the LPG production is at The Bontang refinery operated by PT Badak in East
Kalimantan is used to improve the quality of LNG in the refinery to meet the gas specification commitment to buyers.

C. UTILIZATION OF LOCAL
GOODS AND SERVICES
SKK Migas continues to work optimally in the application and utilization of domestic components in every activity
undertaken in order to maximize the benefits of upstream oil and gas operations for the people's welfare.
Domestic Component Level’s ("TKDN") commitment to the process of procuring goods and services for upstream oil
and gas industry, whether done through approval of SKK Migas or held by PSC Contractor itself in 2017, has reached
US$5.63 billion or 60.54% of the total procurement value.
THE GROWTH 14,000 100%

OF DOMESTIC 90%
12,000
COMPONENT LEVEL 80%
IN UPSTREAM OIL 10,000 70%
AND GAS INDUSTRY 60%
8,000
MILLION US$
50%
6,000 40%
4,000 30%
20%
2,000
10%
0 0%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Des '17
Good 995 1,846 1,400 3,577 3,811 3,706 5,082 4,616 5,548 2,590 3,699 1,627
Services 5,862 4,737 6,568 5,408 6,976 8,109 11,531 9,304 11,807 5,319 6,496 3,999
%TKDN 43% 54% 43% 49% 63% 61% 60% 57% 54% 68% 55% 61%
Both State-Owned Enterprises (Badan Usaha Milik Negara-BUMN) and other national entrepreneurs have taken
advantage of the upstream oil and natural gas business opportunities in the procurement of goods and services of
upstream oil and gas industry. The value of procurement of goods and services by state-owned companies in 2017
amounted to US$133.59 million. Since 2010, the cumulative procurement cumulative has reached US$5.89 billion.

2016 2017
THE ACTIVITIES OF NO. STATE-OWNED ENTERPRISES VALUE (THOUSAND US$) TKDN (%) VALUE (THOUSAND US$) TKDN (%)
PROCURING GOODS
1 PT Pertamina (Persero) 3,273.065.74 74.05% 3,354,574.13 73.69%
AND SERVICES
2 PT Elnusa Geosains Tbk. 722,802.17 72.17% 745,238.08 71.85%
BY STATE-OWNED 3 PT Wijaya Karya (Persero) Tbk. 485,912.49 55.85% 489,535.49 55.97%
ENTERPRISES IN 2010 4 PT Rekayasa Industri 390,245.03 47.84% 390,245.03 47.84%
UNTIL DECEMBER 5 PT PAL Indonesia (Persero) 275,800.00 51.20% 275,800.00 51.20%

PT Surveyor Indonesia (Persero)
2017 6 138,973.42 89.06% 147,210.88 89.21%
7 PT Sucofindo (Persero) 137,113.58 94.62% 142,740.81 92.95%
8 PT Adhi Karya (Persero) 114,385.88 90.07% 114,385.88 90.07%
9 PT Hutama Karya (Persero) 95,584.58 83.35% 95,584.58 83.35%
10 PT Amarta Karya (Persero) 28,000.00 61.34% 29,285.17 67.47%
11 PT Biro Klasifikasi Indonesia (Persero) 27,432.83 66.17% 28,000.00 61.34%
12 PT Telekomunikasi Indonesia (Persero) Tbk. 22,959.05 85.22% 24,317.94 83.10%
13 PT Dahana (Persero) 21,576.98 83.42% 22,739.58 83.39%
14 PT Asuransi Jasa Indonesia (Persero) 11,468.57 93.73% 12,406.82 93.73%
15 PT Pembangunan Perumahan Tbk. 6,336.96 76.32% 6,336.96 48.97%
16 BUMN Lainnya 12,297.59 59.94% 19,141.09 54.45%
Total 5,763,954.87 70.71% 5,897,542.46 70.50%
1,600
1,400
1,200
MILLION US$
1,000
800
600
400
200
-
2010 2011 2012 2013 2014 2015 2016 Dec '17
107.28 678.50 1,378.84 1,108.93 1,233.73 981.93 274.74 133.59
Moreover, in order to improve the use of domestic products in upstream oil and gas business activities, SKK Migas has
prepared the Upstream Oil and Gas Approved Manufacturer List ("AML"). AML is aimed to provide certain reliability of
domestic goods and services that are potentially used in upstream oil and gas business activities by obtaining time and
cost efficiencies from deductions of assessment activities undertaken by each PSC Contractors. In the process, to obtain
a map of the domestic industry's capabilities and gaps that still exist as parts of the development that need to be carried

out eventually. In 2017, an assessment has been made to 150 domestic products from priority commodities that are
required in upstream oil and gas operations, including steel, control panels, chemical, pumps, bolt nuts, heat exchangers,
pressure vessels, wellhead & xmas trees, instrumentation, fittings, cranes, pipes, and paint.
In order to confirm SKK Migas support for the use of domestic materials such as steel, pipes, and local fabrication
facilities on the upstream oil and gas industry, SKK Migas conducted a Workshop on Supply and Demand for the Use of
Local Steel Materials, Pipe and Manufacturing Facilities for Shipbuilding and Construction Activities in Upstream Oil and
Gas held on 29-30 November 2017 in Batam. The workshop is an implementation of the Working Guideline No. 007 of
the Second Book Revision 04 on Guidelines for Procurement of Goods/Services (PTK 007 Revision 04) issued by SKK
Migas in the middle of this year.
The workshop organized by The Indonesian Iron & Steel Industry Association ("IISIA") with the support of SKK Migas
aims to bring together the supply side, the domestic manufacturers of steel and pipes, with the demand side which consists
of PSC Contractors, shipbuilding companies, fabricators, Engineering Procurement and Construction ("EPC") Contractors,
and Front-End Engineering Design ("FEED") Contractors in upstream oil and gas activities. Through the interaction
between all workshops participants are expected to create openness between businesses and a strategic alliance.

D. DISPUTE
SETTLEMENT
SKK Migas has handled 53 issues/disputes and 21 blacklisted consultations during 2017. These lists are part of
supervision and guidance form for PSC Contractors, whereby SKK Migas clarifies upon the Consultation Application
of PSC Contractor for the plan of blacklisted categories to Provider of Goods and Services. SKK Migas may express
disagreement over the category sanction plan (Referred to as provisions of PTK-007 Book Second Revision 04).
SKK Migas also monitors issues and/or disputes in the tender process and implementation of contracts that occur
between PSC Contractors and Provider of Goods and Services ("PBJ") or Contract Executors based on reports received.
DISPUTE AND
SANCTION DISPUTE IN 2017 SANCTION CONSULTATION IN 2017
CONSULTATION
CHEVRON 14 MEDCO 4
HCML 6
CNOOC 4
CONOCOPHILLIPS 4
BP 3
PHE WMO 2
TEPI 3
PETRONAS 2
MEDCO 2
KANGEAN 2 CHEVRON 3
JOB PPS 2
ENI 2 EMCL 2
EMCL 2
TEPI 1
VICO 1
SAKA 1
PURI 1
PETRONAS 1
PHE ONWJ 1
PETROJAVA 1
PETROCHINA 1 PETROCHINA 1
PEP 1
PANDAWA 1 PEP 1
HARPINDO 1
EEES 1
CNOOC 1
CONOCOPHILLIPS 1
CICO 1

E.
INVOLVEMENT OF STATE /
REGIONAL-OWNED BANKS IN THE
OIL AND GAS BUSINESS ACTIVITIES
Since 2009, SKK Migas has the policy to pay for goods and services transactions of upstream oil and gas business
through national banks. This policy provides benefits for national banks, one of which is to provide capital strength to
them. The value of payments that have been booked from 2009 until 2017 has reached a value of US$66.01 billion.
ANNUAL
TRANSACTION
COMMITMENT
14,000
12,000 TOTAL TRANSACTION

FROM APRIL 2009 UNTIL
DECEMBER 2017 IS US$66.01
10,000
BILLION DOLLAR.
8,000
MILLION US$
6,000
4,000 Mandiri 63% (US$41,511.16 Million)

BNI 18% (US$12,182.94 Million)
BRI 6% (US$3,751.89 Million)
2,000 Mandiri & BNI 2% (US$1,612.98 Million)
Syariah Mandiri 1% (US$500.32 Million)
BNI & BRI 0% (US$36.58 Million)
0
2009 2010 2011 2012 2013 2014 2015 2016 Dec'17 Mandiri & BRI 0% (US$16.29 Million)
TRANSACTION 3,969.6 4,626.2 6,348.6 9,337.9 8,195.4 12,432 6,666.3 9,011.5 5,416.3 BTN 0% (US$103.08 Million)
AMOUNT BUMD 0% (US$160.93 Million)
Muamalat 0% (US$13.72 Million)
Komitmen Bank BUMN/BUMD 8% (US$5,016.74 Million)
Bank Umum 2% (US$1,097.92 Million)

In addition to payments for goods and services purchases, SKK Migas also has the policy to deposit Abandonment &
Site Restoration funds ("ASR") in BUMN Banks. ASR is an activity to stop the operation of production facilities and
other supporting facilities permanently and to eliminate its capability to be re-activated, and to commence environmental
recovery in the former upstream oil and gas activities area. As of 31 December 2017, the placement of ASR funds in
state-owned banks has reached US$1,111 million; an increase of 665% compared to the first time the program began
in 2010.
ASR FUND
1,200 1,111
1,000 901
775
MILLION US$
800
635
600 497
344
400
232
167
200
0
2010 2011 2012 2013 2014 2015 2016 31 Dec
2017
TOTAL AMOUNT OF
BNI
ASR FUNDS AS OF
BRI
31 DECEMBER 2017
Mandiri
$410,587,231.20
36.97%
$325,440,608.05
29.30%
$374,688,772.22
33.73%

MANAGEMENT AND
F. DEVELOPMENT OF PSC
CONTRACTORS' HUMAN
RESOURCES
Upstream oil and gas industry is still one of the supporters of development in Indonesia. Indonesia's stable economic
growth, which ranges about 5-6% per year, requires a reliable and sustainable energy supply.
Sufficient production in oil and gas reserves are needed to ensure national energy availability and reduce national energy
dependence from energy imports. Moreover, apart from sustaining Indonesia's economic growth, the national upstream
oil and gas industry presently serves as a driver of national economic activity like oil and gas activities because it provides
multiplier effects on other industries. Upstream oil and gas industries require a lot of manpower on all work levels.
The industry also requires the procurement of goods and services that involve other sectors.
A study in 2015 conducted by SKK Migas in partnership with University of Indonesia stated that each investment of
US$1 million could create an added value of US$1.6 million and increase gross domestic product ("GDP") by
US$0.7 million while opening up to 100 new jobs.
With SKK Migas’ Working Procedures Manual ("PTK") regulates the supply chain management of PSC Contractors
in upstream oil and gas, it is the obligation of the PSC Contractors to involve domestic companies in the procurement
of goods and services. They would eventually increase Domestic Component Level ("TKDN"), in particular the use of
Indonesian National Workers ("TKI").
Currently, more than 70% of human resources ("HR") working in upstream oil and gas companies are Indonesian.
In 2017, the total workforce of PSC Contractors reached 27,216 workers, consisting of 26,811 people TKI and
405 Foreign Workers ("TKA").
The number and types of activities undertaken in the year will certainly have an impact on the use of TKI and TKA.
Employment from 2015 to 2017 continues to decline due to the efficiency program by PSC Contractor caused
by instability of oil prices and has not returned to favorable price positions. Other factors that contributed to the
employment decline in the upstream sector oil and gas is because oil and gas projects that have been completed therefore
the manpower no longer needed.

TKI VS TKA DATA
TKI 40,000 2,100
TKA
35,000 1,900
32,292 31,745
29,330 29,863 1,700
30,000 26,811
25,243 25,682
1,500
22,914 23,668 23,753 23,328
25,000
1,300
1,140
20,000 1,069 1,078
1,032 1,022 1,100
975
960 928 890
901
15,000
900
668
10,000 700
405
5,000 500
300
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
As in previous years, the use of foreign workers is more focused on skill disciplines that are still not adequately met by
TKI (e.g. Projects, Drilling, G&G, Reservoir, Engineering) or as investor representatives (Top Management).
THE DEMOGRAPHY
17.53%
OF TKA BASED ON 16.05%
15.06%
AREAS OF EXPERTISE 14.22%
14.07% 13.62%
13.47%
2016 12.13% 12.10%
8.40%
2017 10.12% 7.93%
8.08% 6.42%
7.16%
5.99%
2.99% 3.14%
2.25%
2.96% 1.05%
2.47%
1.48%
0.25%
Engineering &
Operation Support
Reservoir Engineering
Petroleum Engineering
Business Compliance
Business Development
Project
Leadership
Drilling
Operations
G&G
Finance
Commercial
Compared to the previous year, the composition of foreign workers in the drilling sector has decreased from 14.22% (in
2016) to 10.12% (in 2017). This composition indicates a decrease in the main activities of PSC Contractors as a result
of the downward trend in oil prices.

38,028
DATA COMPARATION 40,000
36,443
34,883
OF TKI TO RPTK 35,000 32,630 33,987 33,804
APPROVAL
30,000 32,292 31,745
RPTK TKI 29,330 29,863
25,000 26,811
TKI Realization
25,682
20,000
15,000
10,000
5,000
0
2012 2013 2014 2015 2016 2017
Graph Description:
1. RPTK TKI data based on the approval of RPTK PSC Contratctor by SKK Migas.
2. TKI data counted based on annual WP&B.
Employment opportunities for labor migrants based on the approved Employment Plan ("RPTK") of 33,804 positions in
various fields, while charging positions as many as 26,811 people (79.31%). However, considering the industry conditions
with the current low oil and gas prices today, usually the PCS Contractor will delay the filling of those vacant positions.
DEVELOPMENT OF TKI
In addition to supervise and control the management of human resources in all PSC Contractors, SKK Migas is also
obligated to ensure the TKI get the development of competence both with transfer of knowledge of foreign workers
and migrant workers, overseas shipments, as well as a series of other development programs aims to enable Indonesian
Migrant Workers to master the required competencies in upstream oil and gas business activities.
As in previous years, the improvement of the migrant workers competence began by way of the training and development
budgeting policy through the WP&B 2017 mechanism, whose numbers decreased compared to 2016. Similarly, just like
in 2016, the PSC Contractor is required to continue developing TKIs through a more effective and efficient method, for
example through the implementation of massive in-house training and preparing facilitators from domestic and/or internal
of each PSC Contractor (TKA or TKI) without reducing less than expected output quality.
In 2017, SKK Migas undertook several initiatives in the field of competency development for Indonesian labor migrants in
the upstream industry national oil and gas, among others:
• Continuing the development of competencies of SCM Professional Upstream Oil and Gas Industry through the
implementation of Certification activities SCM Manager's Profession.
• Continuing the Certification Program of Human Resource Management Professional which is now entered into the
stages of preparation of Standards Special Working Competencies ("SKK Khusus") and Competency Test Material
("MUK").

• Promotes the implementation of Field Work Practice ("PKL"), Final Project ("TA") and apprenticeship for University
students in order to keep open access for the civitas academic in upstream oil and gas industry in the middle of
disappointing oil and gas prices. This matter has become a commitment of SKK Migas and PSC Contractor in
preparation to provide competent National Human Resources to support upstream oil and gas business activities in the
future.
• SKK Migas has signed MoU with several Indonesian Universities such Polytechnic of Samarinda and Polytechnic of
Ambon.
• Successfully ran the 9th Indonesia Human Resources Summit 2017 ("IHRS"), which took place in Yogyakarta.
• In cooperation with Directorate General of Oil & Gas team, SKK Migas conducted a review in relation to the Minister
of Energy and Mineral Resources No.31 of 2013 revision which is focusing on improving the development of TKI and
optimizing the use of foreign workers.
• Encourage PSC Contractors to send potential migrants to work in overseas business units, through the Technical
Development Exchange ("TDE") Program, Job Swapping, Job Assignment, Internationalization, including further
education ("S2") overseas.
RECAPITULATION
500
OF INTERNSHIP 436
450
PROGRAM IN PSC
CONTRACTORS 400
350
300
243
250
200
150 109 97
100 61
50
0
2012 2013 2014 2015 2016

DEVELOPMENT OF TKI 300
COMPETENCY THROUGH
TDE PROGRAM, JOB 250
SWAPPING, OVERSEAS 200

ON THE JOB TRAINING,
INTERNATIONALIZATION, 150
AND MASTER 100

PROGRAMS ABROAD
50
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Swapping 34 60 55 50 45 34 37 9 4 1 1
TDE 32 30 18 10 14 16 14 6 8 5 3
Overseas OJT/Job Assignment 34 75 45 39 73 102 92 5 9 12 9
Internationalization 187 240 220 144 100 67 39 27 23 18 19
Masters Program 0 0 0 3 6 11 6 0 2 0
As an annual activity, SKK Migas consistently evaluates the performance of HR management by all PSC Production
Contractors through the Career Development Monitoring ("CDM") program to ensure that all PSC Contractors put
efforts to improve continuously so that HR management in PSC Contractors is done effectively and efficiently.

05
IN TERNAL
SKK MIG AS
132 SKK MIGAS ANNUAL REPORT 2017 | INTERNAL SKK MIGAS

INTERNAL SKK MIGAS | SKK MIGAS ANNUAL REPORT 2017 133
A. AUDIT
REPORT
Based upon the report of Independent Auditor of Public Accountant Office of Purwantoro, Sungkoro & Surja Number
RPC-5450/PSS/2017 dated October 31st, 2017, the Financial Report of SKK Migas for the year ended on December
31st, 2016 is Proper Without Modification in all matters.
B. CONTINUOUS IMPROVEMENT
IN THE GOVERNANCE ASPECT
OF THE ORGANIZATION
1. BUSINESS PROCESS IMPROVEMENT IN SKK MIGAS

SKK Migas continuously engaged in the thorough internal improvement of the company’s organization governance
covering the business process, guidelines for working procedures (“PTK”), and standard operating procedure (“SOP”).
As a whole, the process will be done in accordance with the rules and regulations without excluding quality service to
the stakeholder to effectively, efficiently and transparency achieve bureaucratic reform.

In 2017, SKK Migas made effort to validate 8 (eight) PTK as follows:
LIST OF LEGALIZED
PTK IN 2017
NO NAME STATUS ENFORCEMENT
1 PTK Chain Supply Management Book Two on Goods and Services Revised PSC Contractors
Purchasing Procedure Revision 04
2 PTK Plan of Development Revision 01 Revised PSC Contractors
3 PTK Insurance Management Book One on General Requirements Revision 02 Revised PSC Contractors
and Book Two on Implementation of Insurance Procurement Revision 02 as
well as Book Three on Insurance Declaration Guidelines Revision 01
4 PTK Aircraft Technical Requirements, Aircrew, Means of Air Support Revised PSC Contractors
Revision 01
5 PTK Suspension of Operating Expenses Charges Revision 01 Revised PSC Contractors
6 PTK Financial Budget and Reporting Manual of PSC and Chart of Account New PSC Contractors
7 PTK Lifting Gas Condensate and/or Crude Oil in Upstream Oil and Natural New PSC Contractors
Gas Business Activities
8 PTK Appointment of National Seller and Reseller for Gas Condensate and/ New PSC Contractors
or Crude Oil.
All these PTKs are aimed to clarify working relationship between SKK Migas and PSC Contractors in terms of
procurement of goods and services PSC Contractors; POD agreement; Insurance of procurement and declaration;
aircraft technical requirements, aircrew, means of air support; suspension of operating expenses charges; financial budget
and reporting manual of PSC and chart of account; lifting gas condensate and/or crude oil as well as appointment of
National seller and reseller for gas condensate and/or crude oil.
The business process was started in line with the Minister of Energy and Mineral Resources (“ESDM”) Regulation
Number 17 in 2017. It regards the Organization and Working Procedures of the Special Unit for Upstream Oil and
Natural Gas Business Activities among others: the establishment of a field-level organizational unit for procurement and
supply chain management; and the enhancement of the Representative organization unit status into Division level. So, it
can strategically carry out its principal task and function. The alignment of SKK Migas's business processes based on the
Minister of Energy and Mineral Resources Regulation will continue in 2018.

2. CLEAN AND FREE FROM CORRUPTION, COLLUSION, AND NEPOTISM
SKK Migas has made continuous improvement and refinement of the corporate governance by conducting programs
to prevent corruption, fraud, and gratification. This improvement is done in order to materialize an upstream oil and
gas industry that is free from corruption, collusion, and nepotism ("KKN").
Some of these activities are:
1) THE TOP MANAGEMENT COMMITMENT IN THE ERADICATION OF BRIBERY:

a) No Bribery, No Kick Back, No Gift, and No Luxurious Hospitality
Since 2015, Top Management, in every opportunity will always socialize "4 Nos" either to internal function
or external function (PSC Contractors, Vendors of PSC Contractors and other Stakeholders);
b) The implementation of ISO SNI 37001 Anti-Bribery Management System.
Implementation of ISO 37001 SMAP has been implemented since July 28, 2017, starting with a Task e-mail
from Chairman of SKK Migas. Activities that have been done are:
i. Complete Gap Analysis;
ii. Complete Training Awareness for PSC Contractors, Vendor, and internal SKK Migas;
iii. Complete ISO 37001 SMAP SKK Migas Policy Development.
Activities to be done in the future are:
i. Complete ISO 37001 SMAP SKK Migas Policy Implementation;
ii. Complete Internal Assessment in order to Certified ISO 37001 SMAP SKK Migas;
iii. Complete ISO 37001 SMAP SKK Migas Certification.
2) OBLIGATORY STATE OFFICIAL WEALTH AND ASSET REPORT

SKK Migas requires all SKK Migas Management and Workers to deliver Report of State Official Assets
(“LHKPN”) based upon Chairman of SKK Migas decree Number KEP-0334/SKKO0000/2013/S0 regarding
LHKPN Obligatory Declaration. In line with the obligation mandated in the laws, the submission of LHKPN shall
be conducted in every two years or newly promoted, SKK Migas Management and Employees are required to
renew their LHKPN by filling up LHKPN B form. However, in 2017, the renewal submission for LHKPN
SKK Migas Employees has been postponed until Corruption Eradication Commission (“KPK”) has finished
e-LHKPN which is LHKPN online submission application.
3) GRATIFICATION ADMISSION REPORT

Since the issuance of Chairman of SKK Migas decree Number KEP-0161/SKKO0000/2011/S0 regarding
Guidelines for Gratification Control (“PPG”), then all Management and Employees of SKK Migas are obligated to
deliver / report of gratuity acceptance. In accordance with the gratification provision, Management and Employees
of SKK Migas are required to submit gratification report form within seven days of accepting the gratification.
Throughout 2017, Internal Supervisor (“PI”) has received 18 gratification reports with itemized report per month
as follows:

GRATIFICATION
4
ACCEPTANCE REPORT
0
2 0 1 0 1 2 3 1 1 4 1 2
4) WHISTLEBLOWER SYSTEM
Since August 2013, SKK Migas has opened Whistle Blower System ("WBS") under the name of KAWAL SKK
Migas. This channel can be used by internal as well as the external reporter to notify alleged violation(s) by
Management and/or Employees of SKK Migas. All reports will be verified by KAWAL SKK Migas to ensure
the validity of the allegation. The criteria(s) of the alleged violation that can be reported are corruption,
Ethical Guidance violation, PPG violation, fraud, conflict of interest, harassment, and distribution or leakage of
confidential institution information.
WBS has been managed independently since April 2015. During the year 2017, PI has received as much as 4
(four) WBS reports that were further investigated. Nevertheless, PI still needs to increase socialization of WBS, so
SKK Migas internal and external circle are more aware of this reporting channel and to grow confidence in PI as
the WBS manager in SKK Migas.
5) ENTERPRISE RISK MANAGEMENT

SKK Migas has been implementing Enterprise Risk Management ("ERM") for the past 2 (two) years. The focus
of this implementation for the first two years is to build awareness as the cornerstone to produce commitments
from all functions to implement ERM as part of their duty and responsibility to SKK Migas. In 2017, to increase
the effectiveness of Risk Management in SKK Migas, PI applied Three Lines of Defense in SKK Migas. With this
model, it was expected to improve comprehension of the functions towards risk management, enhanced internal
control in all business process, enhanced PI function and Risk Management Unit.

A. Risk Mitigation Monitoring Semester 1/2017
Semester 1 Tahun 2017 Completed
Mitigation planning is arranged by Risk Owner in order
In progress
to control or reduce the impact and/or the likelihood of New
the risk which is expected to lower the risk value from high
2%
risk to medium or low or medium risk to low. The following
is the status of risk mitigation planning that has been
delivered by each field to PI on semester 1/2017 monitoring.
According to the result of monitoring semester 1/2017, 64 %
64% of the mitigation planning has been done by the
functions. In average, each field has around 30 mitigation 34 %
plans that are still in process to be implemented and in Business Support Field there are 13 mitigation plans
that has yet to be completed.
MITIGATION PLAN Completed
STATUS OF SEMESTER In progress
1/2017 FOR EACH FIELD Not started
175
13
125
37 38
100
75
32 34 32
50
2 6
25 44 49 87 94 33
18 16
0
Planning Operation Monetization & Business Support Procurement Secretary PI
Finance
B. Three Lines of Defense ("3LOD") Model Implementation

The result of Risk Awareness survey of 2016, has concluded that 80-85% from Risk Owners & Risk
Champions have understood the risk register at SKK Migas (enterprise) level as well as their unit level
and have also drafted a mitigation plan to reduce the level of that risk. To increase the efficiency of risk
management, on 2017, PI has implemented 3LOD model in SKK Migas.
3LOD Model has a simple but effective concept to increase the coordination between management risk process
and internal control by dividing the roles and responsibilities of each unit, that is:

a.The first line of defense is all the risk owner functions as well as the most responsible group for managing all
of their tasks and managing risk mitigation.
b. The second line of defense is a function that is formed by the management to help, review and monitor the
tasks and responsibilities of the first line of defense in managing risk and implementing internal control.
c. The third line of defense is a function that is responsible for giving independent and objective assurance to
Top management relating to governance, implementing risk management and internal control.
THE THREE LINES OF

DEFENSE MODEL Governing Body/ Board/ Audit Commitee
Senior Management
External Audit
Regulator
1 st Line of Defense 2 nd Line of Defense 3 rd Line of Defense
Financial Control
Security
Managenent Internal Risk Management Internal

Controls Controls Audit
Measures Quality
Inspection
Compliance
C. Transitional of SKK Migas Risk Management Implementation

According to the Head of SKK Migas decree Number KEP-0070/SKKMA0000/2017/S0 that has been set
on August 31st, 2017 regarding the Main Task and Function for the Department and Staff Level of SKK
Migas, item 1.3.1 letter b “By analyzing, evaluating and monitoring SKK Migas risk management” therefore
all jobs and responsibilities that is related to SKK Migas risk management that was under PI will effectively be
transitioned to the division of Strategic Management and Information Technology.

C. INFORMATION AND
COMMUNICATION
TECHNOLOGY SYSTEM
1. PROCESSING INFORMATION DATA SYSTEM

Department of Processing Information Data System (“PDSI”) has performed tasks and functions according to
Information and Communication (“ICT”) Blueprint 2016-2019. By continuing last year’s initiative activities, PDSI
supervises and control upstream oil and gas using Information and Communication Technology as well as supporting
internals’ main task and function in SKK Migas that is related to PDSI. In 2017, internals from the department of
PDSI as well as the supervisor and controller in PSC Contractors have initiated a plan to increase the quality of data
as one integrated “single source of truth” data, especially data on integrated digital applications that are currently
being collected for SKK Migas’ database. The data is expected to maintain its integrity and have valid references to
prevent duplication and inconsistencies in reporting and delivering information.
The initiative activities to actualized objective data as “single source of truth” in SKK Migas and PSC Contractors
are as follows:
A. SUBSURFACE MASTER DATA MANAGEMENT
The scope of work for master data management phase 4 covers geology data, geophysics, and reservoir (“GGR”)
that includes seismic, well core, well log, stratigraphy, and lithology.

The data reference is compiled using the Professional Petroleum Data Management (“PPDM”) model data version
3.8 by including seismic modules, wells, stratigraphy, and lithology. The integration took eight months to complete
starting on April 27, 2017, and ended on December 15, 2017.
Tasks that have been completed are Kick Off Meeting, Data Collecting based on subsurface data from the activities
of WP&B, AFE, POD, Data Governance that was compiled based on SKK Migas Authority Management System
Guide (“PSKM”) version 4.00 and entitlement module (“ENT”) PPDM version 3.8. Data Integration is to consolidate
main data aspects that have been previously arranged such as of Contracted Area, Contractors, Commitment, Wells,
Fields, Transportation, Production Facility, WP&B, AFE and POD with lithology, stratigraphy, seismic, well core and
well log of the main subsurface data.
The final organization presentation of the main subsurface data was done through master data management
(“MDM”) user interface using an updated technology called framework programming java CUBA. The preview of the
map that corresponds to the displayed data was done using an enhance feature on Spatial MDM 1 that has been
designed on the last MDM activities phase.
B. DATA INTREGRATION IMPLEMENTATION

Data integration implementation that has been completed in 2017 are as follows:
1) Improving MDM integration design from the MDM source data application system to MDM database and user’
Applications, by optimizing the application of Service Oriented Architecture (“SOA”) concept.
2) Improving monitoring dashboard which is processed by synchronizing of MDM between MDM with source
application and user application. Through this dashboard, you can monitor the status of synchronization
process as well the information that is relevant to SKK Migas Master Data.
3) Implementation of MDM Stage 3 Integration includes data:
o Integration of contract name/contract area, operator name, field name, well name, operation facility and
oil type from the application as an MDM source data into MDM database environment.
o Integration from the MDM database to the SOT PM&L, SOT DM, SOT FQR, KPM and Sinas
application databases.
The implementation purpose of MDM data integration to have a consistent and reliable master data that has
the same format and labeling, therefore can be used by all functions in SKK Migas as one “single source of
truth”. Through MDM, the data will constantly be updated therefore can be a reliable source of information.
Socialization connected to the integration of MDM data has been done in the year of 2017 with a few Functions
in SKK Migas.

C. STUDYING AND PROTOTYPING DATA REPOSITORY AND BUSINESS INTELLIGENT PHASE 1
The studying and prototyping for the development of data repository were conducted in 2017, data from multiple
functions in SKK Migas are gathered into one database called Data Repository. These data undergo a cleaning
and synchronizing process with other related data before compiled, therefore it’s available for a clean vertical or
functional analysis. Within this stage, Business Intelligent was used to display the result of data analysis that was
successfully collected in Data Repository, thus can be as useful a reference when making a decision.
At this stage, the current data collected are:
1) Contract Area, PSC Contractors and Operators;
2) PSC Contractors Financial Quarterly Report (“FQR”);
3) PSC Contractor Production and Lifting Report.
Since this is a prototyping stage, the result of this activity will determine the plan for the next stage.
D. PROVISIONING THE DATABASE MANAGEMENT SYSTEM ("DBMS") FACILITY FOR GGR PSC
CONTRACTORS DATA
Oversight activities and control of upstream oil and gas activities have always involved subsurface data with the
WP&B, AFE, and POD submission. The presentation of the subsurface data included in the WP&B, AFE, and
POD submissions is more in static forms on Microsoft Office file without involving GGR data from the original or
the modified image. In order to support a more comprehensive analysis by using real subsurface data, SKK Migas
conducts subsurface data collection gradually from all PSC Contractors exploration and production phases.
INFRASTRUCTURE Data Access from

PSC Contractors
SETUP
SDMS Data Access
Data Access within using Internet
internal network
SKK Migas Network
Workstation for
technical computing
SDMS Data Manager Geoscientists Workstation
SDMS Server Data Management

& Storage Workflows

The GGR data collecting process requires the PSC Contractors to obtain a subsurface data management tool
that the user can use directly. The development of DBMS is expected to meet the needs of data management
as intended. The amount of subsurface data that have been and will continue to be collected in the DBMS
repository in accordance with the following illustrations.
WORKING AREA DOCUMENTS / FILES
65 out of 245 Total PSC Blocks/Working Area Loaded 68,891 Files

57 Document Types
WELLS SEISMIC 2D SEISMIC 3D 23,914 Well Log Related Files
11,933 (Other File Types)
7,026 404 476 13,201 98 9,534
6,913
Velocity
Drilling and Completion
Wells Fields Surveys Lines Surveys 5,627 Well Testing
2,882 Petrography
5,042 Seismic Related Files
Deviation Surveys Checkshots Markers Well Legs 1,102 SCAL/RCAL
442 Core
4,967 935 257,855 127,286 397 Biostratigraphy
Records Records Records Well Log Curves 323 Horizon
300 Geological Model
3,471 4,259 2,892 246 Geological Marker
Wells Wells Wells 236 Geochemistry
Through the procurement process that has been traversed, the subsurface data management device is leased for
ten months to accommodate, load, and manage all subsurface data collected from the PSC Contractors.
With the availability of DBMS tools, it is expected that subsurface data analysis activities can be done thoroughly
and in detail in order to produce more accurate upstream oil and gas decision and policies.
E. INFORMATION TECHNOLOGY AUDIT

Information Communication Technology (“ICT”) Audit implementation in 2017 was executed by enforcing the
implementation of TIK activities in PSC Contractors under PTK provisions Number 053/SKKO0000/2013/
S0 in regards to ICT management towards PSC Contractors. In 2017, the implementation of ICT supervision
was started by 2 (two) PSC Contractors covering 5 (five) areas such as Information Technology Strategy, Risk
Management, Information Security, Communication Network and Information Technology Operations. The 2
(two) PSC Contractors ICT teams were then required to perform remedial measures in accordance with the time
frame to submit their Final Audit Result Report (“LHA”).

F. MANAGEMENT TRANSFER ON TERMINATED CONTRACT AREA
By the end of 2017 management transfer of the Contract Area ("CA") involved termination of both small and
large scale which occurs, among others, with the transfer of CA Mahakam and Attaka. The objectives of the
management transfer from the ICT management point of view is the coordination of information technology
(IT) migration. It includes IT infrastructure, IT applications, telecommunication, IT asset management, petro
application and data management, with existing and new operators managing the process so the CA transfer
can run seamlessly, without interrupting operation. By the end of 2017, one of the main focuses is on managing
CA Mahakam where the complexity of the mitigation is wide and high. In preparation for the transfer of ICT
is required extra handling which involves several stakeholders for the management of IT Platform migration
to applications that have been built by the old operator and data migration. Likewise associated with licenses
and licensing for applications and radio communications and telecommunications. In 2017, there has also been
a preparatory meeting to manage the ICT CA which will be terminated in 2018 by conducting presentations,
coordination, and follow-up on mitigation.
G. USE OF THE VISUALIZATION AND DATA ANALYSIS SOFTWARE

In 2017 data visualization and analysis software or tools are increasingly being used by functions in SKK Migas
such as Facility Maintenance Function, PSC Exploration Contractor Audit, Field Developer Technology, Budget
Planning as well as Programs and Communication. PDSI Department monitored the installation and provide
assistance based on demand or requirement on user function. The result of the visualization data will be consumed
by other users who will be publicized onto servers where they can be accessed through SKK Migas Portal. In
addition, as a form of socialization of data processing tools used in SKK Migas, “Data Day” was held in September
2017 where SKK Migas created presentations and hands-on sessions (workshops) so that users could consult and
try analysis tools using their data directly.
2. INFORMATION TECHNOLOGY OPERATION

In order to support SKK Migas as the Subsurface Database Center, SKK Migas needs sizeable infrastructure support
especially a high capacity Server and Storage. This infrastucture led to a much larger Server and Storage capacity
increase compared to the previous year.

MAP
OF
CON TRA CT
ARE A

MAP OF THE INDONESIAN
OIL & GAS AND UNCONVENTIONAL
CONTRACT AREAS IN 2017
* Status as of 31 December 2017
146 SKK MIGAS ANNUAL REPORT 2017 | CONTRACT AREAS

CONTRACT AREAS | SKK MIGAS ANNUAL REPORT 2017 147
LEGEND OF THE INDONESIAN
Color Description Of CA’s Legend:
Pertamina EP CA : 1 CA CONVENTIONAL CA
Exploitation CA : 86 CAs AREA I (SUMATERA AND NATUNA ISLAND)
Exploration CA : 88 CAs
Under Termination Process CA : 34 CAs
CBM Exploration CA : 37 CAs
CBM Under Termination Process CA : 6 CAs
Unconventional Exploration CA : 6 CAs

Pertamina EP CA : 1 CA AREA II (JAVA, MADURA, AND KALIMANTAN)
Exploitation CA : 86 CAs

AREA III (INDONESIA EASTERN AREA)

Pertamina EP CA : 1 CA AREA III (INDONESIA EASTERN AREA)
Exploitation CA : 86 CAs

UNCONVENTIONAL CA
SUMATERA KALIMANTAN

SKK Migas Head Office
Wisma Mulia Building 35th Floor

Jl. Gatot Subroto No. 42
Jakarta 12710
PO BOX 4775
Indonesia
Phone:
(+62-21) 29241607
Fax:
(+62-21) 29249999
www.skkmigas.go.id

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INTRODUCTION

02 SKK Migas Vision and Mission

27 PSC Contractors’ Commitment

37 Oil and Gas Production/Lifting Activities

103 Donggi Matindok Project

106 Bison Iguana Gajah Puteri Project

PRODUCTION AND 106 Schematic Diagram of Bison, Iguana, and

130 Development of TKI Competency

Synergize stakeholders and Production Sharing Contract Contractors to

Work towards a conducive working culture through synergy, coordination

Support and develop the national capacity to compete in national,

Increase state revenue to give maximum contribution to the national

2 SKK MIGAS ANNUAL REPORT 2017 | INTRODUCTION

INTRODUCTION | SKK MIGAS ANNUAL REPORT 2017 3

4 SKK MIGAS ANNUAL REPORT 2017 | INTRODUCTION

INTRODUCTION | SKK MIGAS ANNUAL REPORT 2017 5

SKK Migas Oversight Committee Chairman

Ignasius Jonan is an alumnus of Bachelor Degree in Accounting S1,

SKK Migas Oversight Committee Vice Chairman

He graduated from the Faculty of Economics Gadjah Mada University

6 SKK MIGAS ANNUAL REPORT 2017 | INTRODUCTION

SKK MIGAS OVERSIGHT COMMITTEE

Tom Lembong received a Bachelor of Arts degree from Architecture

INTRODUCTION | SKK MIGAS ANNUAL REPORT 2017 7

Assalaamu'alaikum Warrahmatullaahi Wabarakaatuh

8 SKK MIGAS ANNUAL REPORT 2017 | INTRODUCTION

Wassalamualaikum Wr. Wb.

INTRODUCTION | SKK MIGAS ANNUAL REPORT 2017 9

CHAIRMAN OF SKK MIGAS

AMIEN SUNARYADI was inaugurated as

SUKANDAR was inaugurated as the Vice Chairman of SKK Migas on

SECRETARY OF SKK MIGAS

ARIEF SETIAWAN HANDOKO was inaugurated as the Secretary of

INTRODUCTION | SKK MIGAS ANNUAL REPORT 2017 11

JAFFEE ARIZON SUARDIN was inaugurated as SKK Migas Deputy for

DEPUTY FOR OPERATIONS OF SKK MIGAS

FATAR YANI ABDURRAHMAN was inaugurated as SKK Migas

12 SKK MIGAS ANNUAL REPORT 2017 | INTRODUCTION

PARULIAN SIHOTANG was inaugurated as SKK Migas Deputy for

DEPUTY FOR BUSINESS SUPPORT OF SKK MIGAS

ATOK URRAHMAN was inaugurated as SKK Migas Deputy for

INTRODUCTION | SKK MIGAS ANNUAL REPORT 2017 13

DJOKO SISWANTO was inaugurated as SKK Migas Deputy for

INTERNAL AUDIT OF SKK MIGAS

TASLIM Z. YUNUS was inaugurated as Internal Audit on 30 March

14 SKK MIGAS ANNUAL REPORT 2017 | INTRODUCTION

SECRETARY INTERNAL AUDIT

DEPUTY FOR DEPUTY FOR DEPUTY FOR

EXPLORATION PLANNING DRILLING BUSINESS STRATEGY, SUPPLY CHAIN LEGAL DIVISION

INTRODUCTION | SKK MIGAS ANNUAL REPORT 2017 15

16 SKK MIGAS ANNUAL REPORT 2017 | INTRODUCTION

* Remark: unaudited data as of 30 January 2018

INTRODUCTION | SKK MIGAS ANNUAL REPORT 2017 17

18 SKK MIGAS ANNUAL REPORT 2017 | SKK MIGAS 2017 PERFORMANCE

OIL AND GAS

20 SKK MIGAS ANNUAL REPORT 2017 | SKK MIGAS 2017 PERFORMANCE

TOTAL EXPLOITATION UNCONVENT CBM EXPLORATION CONVENTIONAL UNCONVENT

ONSHORE 138 CAs 45 CAs 6 CAs 37 CAs 38 CAs 6 CAs 6 CAs

OFFSHORE 83 CAs 29 CAs - - 34 CAs 20 CAs -

ONSHORE/ 34 CAs 13 CAs - - 16 CAs 5 CAs -

ACTIVE ACTIVE OIL TERMINATION

TOTAL CONTRACT AREAS