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OVERVIW

President ; susilo bambang yudoyono (since- october2004).


Location; Southeastern Asia, archipelago between the Indian
Ocean and the Pacific Ocean
population (2005) ; 241,973,879
Indonesia remained a Dutch colony until 1942. Indonesia's oil
industry is one of the oldest in the world. Oil in commercial quantities
was discovered in northern Sumatra in 1883 BY( Royal Dutch
Company for Exploration of Petroleum sources in the Netherlands
Indies)
Petroleum having been produced and exported from the island
nation for more than 75year.

the history of indonesian oil ,however, has been acheckered


one .from an important early contributor to the world's crud
production under peaceful dutch

1890 Telaga Said production field sold to a company that later


merged to form Royal Dutch Shell. First production was in1892.

1912 Standard Oil of New Jersey through its Dutch subsidiary


received permission to explore for oil in South Sumatra.

1921 The Talang Akar field is discovered, which proved to be the


biggest find before WWII

1942 japanese take over most oil fields during WWII and slow
production

1962 pan America n oil company signed the first contract of work
with pertamina
1962 indoneia joints OPEC

1968 National oil companies Permina and Pertamin merged to form


Pertamina

1978 First LNG plant enters production 

Oil Reserve:
Indonesia currently holds proven oil reserves of 4.7 billion barrels,
down 13% since 1994. Much of Indonesia's proven oil reserve base is
located onshore. Central Sumatra is the country's largest oil
producing province and the location of the large Duri and Minas oil
fields. Other significant oil field development and production is located
in accessible areas such as offshore northwestern Java, East
Kalimantan, and the Natuna Sea. Indonesian crude oil varies widely
in quality, with most streams having gravities in the 22o to 37 o API
range. Indonesia's two main export crudes are Sumatra Light, or
Minas, with a 35 o API gravity, and the heavier, 22o API Duri crude.

Astudy released in August 2002 by Indonesia's Directorate General of


Oil and Gas shows that oil reserves in the Cepu block alone, located in
Central/East Java, are close to 600 million barrels, about half of which
is considered recoverable.

NaturalGas:
Indonesia has proven natural gas reserves of90.3 trillion cubic feet
(Tcf)(1/1/2004). Most of the country's natural gas reserves are located
near the Arun field in Aceh, around the Badak field in East
Kalimantan, in smaller fields offshore Java, the Kangean Block
offshore East Java, a number of blocks in Irian Jaya, and the Natuna
D-Alpha field, the largest in Southeast Asia. Despite its significant
natural gas reserves and its position as the world's largest exporter of
liquefied natural gas (LNG), Indonesia still

relies on oil to supply about half of its own energy needs. About 70%
of Indonesia's LNG exports go to Japan, 20% to South Korea, and the
remainder to Taiwan.

Indonesia still relies on oil to supply about half of its own energy
needs.

Revenues from gas exports are substantial -- $5.6 billion in 2002, or


about 10 percent of Indonesia’s total export revenues.

:Major Producing Oil Fields


The majority of Indonesia's producing oil fields are located in the
central and western sections of the country like

Duri, Minas, Belida, Ardjuna, Arun, KG/KRA, Widuri, Nilam, Attak,


bekasap

Major Gas Fields:

Sumatra: Arun, Alur Siwah, Kuala Langsa, Musi, South Lho Sukon,
Wampu

East Kalimantan: Attaka, Badak, Bekapai, Handil, Mutiara, Nilam,


Semberah, Tunu

Java: Pagerungan, Terang/Sirasun

Irian Jaya: Tangguh

PRODUCTION HISTORY:

Indonesia is the third oldest oil producer in the world after the United
States and Russia, with production having commenced more than a
century ago. In 2000, Indonesia ranked 17th in the list of the worldd's
largest oil producers. Currently, Indonesia is the second largest oil
producer, after China, in the Asia Pacific region with over 27% of the
the region's oil production.

Sumatra has traditionally been the principal oil-production region in


Indonesia followed by java and Kalimantan.caltex is largest producer with
an out put in 2000 of 750,000 b/d from its Mins,Duri,and bekasap fields In
central Sumatra.shell's production (as of1january 1966 taken over by the
government .)

Caltex is the largest single independent Indonesian oil producer with over
700,000 barrels per day.
Indonesia's oil production was formally governed by a quota
allocation from OPEC. At the March 1991 OPEC ministerial meeting,
Indonesia's quota was set at 1.445 million barrels per day, below the
country's estimated production capacity of 1.7 million barrels per day.
Indonesia's quota represented about 6 percent of total OPEC
production.

About 70 percent of Indonesia's annual oil production was exported


on average during the late1980s, but domestic consumption was
increasing steadily and reached half of annual oil production by 1990.

Indonesia is the only Southeast Asian member of OPEC and its


Production Quota (since 4/01/04): 1.218 million bbl/d (as of
7/01/04):1.32millionbbl/d , well above its production capacity. Since
becoming a net oil importer in 2004, Indonesia has reportedly been
considering eventually leaving OPEC, but no final decision to do so
has been made.

Indonesia produced an average of 1.251 million barrels of oil per day


(BOPD) in 2002, down 6.9 percent from the previous year's average of
1.340 million BOPD

In the first eight months of 2005, Indonesian crude oil production


averaged 944,000 barrels per day (bbl/d), down from the 2004
average of 967,000 bbl/d and continuing the decline of the past
several years. The decline is due mainly to the natural fall off of aging
oil fields, a lack of new investment in exploration and development,
partially due to regulatory hurdles.

Most of Indonesia's major oil producers reported declines (see table1).


Caltex Pacific Indonesia's (CPI) production dropped 10.2 percent, in large
part due to the loss of its CPP block to the Siak regional government in
August 2002.

CPI now accounts for 44 percent of the country's crude oil production.
Pertamina's production dropped 8.3 percent, due to steady declines in its
matured and depleted fields in South Sumatra and Kalimantan. In
contrast, national oil company Exspan reported a 3.6 percent increase in
production, due to strong performance from its Rimau oil block in South
Sumatra,.China's increased presence is another significant change to the
oil production picture.
Main operating companies:

The following shows crude and condensate production by company (in


thousands BOPD):

Company 2000 2001 2002 %Change

Caltex 705.9 643.3 577.5 -10.2


CNOOC/YPFMaxus 126.6 125.7 115.0 -8.5
ConocoPhilips* 87.9 78.1 64.5 -17.4
TotalFinaElf 85.5 90.0 80.0 -11.1
Exspan 67.2 82.5 85.5 3.6
Unocal 59.4 59.3 56.2 -5.2
Vico 48.4 40.8 36.2 -11.2
Pertamina 46.3 43.6 40.0 -8.3
Petrochina 37.6 45.8 42.4 -7.4
ExxonMobil** 28.2 13.4 25.3 88.5
PT Bumi Siak*** - - 13.9 -
Kondur Petrol 14.9 13.8 11.1 -19.2
Talisman 14.6 13.8 12.7 -7.8
table(1)
Natural Gas Production (Million SCF)

TotalFinaElf 841,419 880,237 835,031 -5.1


ExxonMobil 458,929 268,109 558,170 108.2
Vico 452,456 464,049 437,386 -5.7
Pertamina 285,692 276,791 257,994 -6.8
Conoco/Philips 186,150 205,129 232,332 13.3
Unocal 166,316 159,313 149,317 -6.3
CNPC 30,901 45,091 59,015 30.9
Caltex 57,753 50,306 44,825 -10.9
Exspan 33,060 40,990 41,676 1.7
Premier/Amoseas 12,572 29,238 40,371 38.1
CNOOC 24,894 27,611 27,258 -1.3
Kodeco 12,392 11,034 23,570 113.6
Company 2000 2001 2002 %Change

table(2)
OIL REFINERIES (1/1/04)::

Indonesia has eigth refineries(in2004), with a combined capacity of


992,745 bbl/d. The largest refineries are the Cilacap- Central Java
(348,000 bbl/d); Pertamina-Balikpapan, Kalimantan (240,920 bbl/d);
Musi- South Sumatra (109,155 bbl/d), Balongan, Java (125,000 bbl/d);
Dumai- Central Sumatra (114,000 bbl/d); Sungai Pakning, Central
Sumatra(47,500bbl/d);PangakalanBrandanNorthSumatra, (4,750bbl/d),
Cepu,CentralJava(3,420bbl/d)

PT Kilang Minyak Intan Nusantara, a joint venture of Al-Banader


International Group of Saudi Arabia (40%), China National Electrical
Equipment Corporation (40%) and PT Intanjaya Agromegah Abadi
(20%), are investing a total of $6 billion to build two Indonesian oil
refineries -- one in Pare-Pare, South Sulawesi and the other in Batam
Island, Riau. Both projects are expected to be operational in 2005,
with crude refining capacities of 300,000 bbl/d. The refineries will be
export-oriented, taking Saudi crude and refining it for sale primarily
to the Chinese market.
OIL TANKER TERMINALS:

JAVA:
,Surabaya,Ardjuna(offshore),

SUMATRA:
Belawan, Perlak, Palembang, Tanjung Uban (offshore)

KALIMANTAN:
UjungPandang

IRIAN JAYA:
Sorong, Bula ,Ikan Pari

PETROCHEMICALS:

A number of petrochemical plants were in various stages of proposal


or planning in 1997.
Among them, PT petro Indokimia centra of the Salim group, proposed
a $1.56 billion basic olefins plant at an undisclosed site. The plant with
produce 850,000 metric tons/year of ethylene, 425,000 tons/year of
propylene, and other chemicals. Completion was scheduled in 2001.
Also Nissho Iwai Corp, P.T. Tirtamas Majutama, and Siam Cement
Co. proposed to build a plant at Tuban on Java to produce a combined
3 million tons/year of ethylene and proplylene, and polymers.
PT PENI polyethylene joint venture, in which BP chemicals ltd. Holds
a 51% interest, planed to build 900,000 tones/year ethylene plant at
Bojonegara west Java.

REFERENCE:

International petroleum encyclopedia – vol 31


LINKS

www.eia.com
www.usembassy jakarta .com
www.bloom berg.com

Pipe line:
A proposed pipe line a (6000 mile) extends from southern Sumatra
region to Singapore with a capacity (3.6 B cum/y).

A pipe line (363 mile) extends from Vrissik to west Java designed to
supply (6.2 B cum/y).

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