ASEAN Oil & Gas Updates I September 2021 I ACE.

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reserved. 1
“ASEAN Oil and Gas Updates 2021” provides a comprehensive overview of the current
oil and natural gas situation in ASEAN.
The data were collected from various reliable sources: official reports from the
governments, private sectors and international organisations. They are all available at
ASEAN Energy Database System (AEDS).

Contact: pfs@aseanenergy.org

September 2021

ASEAN Oil & Gas Updates I September 2021 I ACE. All rights reserved. 2
2020 Highlights

Oil Oil Gas Gas COVID-19

Production Consumption Production Consumption Impacts

Oil production was Reduction of oil Gas production was Reduction of gas The COVID-19
declining and was consumption due to declining, and total consumption due to pandemic reduced
considered to be at COVID-19 impacts. proven gas reserves COVID-19 impacts. the demand for oil
the lowest point in the Approximately 70% of were decreasing Natural gas was used and gas, resulting in
mainly to generate low production and a
last decade. Proven oil oil consumption was compared to 2010 falling oil price.
reserves also used in the levels. electricity and in the
decreased compared transportation sector. industrial sector.
to the 2010 level.

ASEAN Oil & Gas Updates I September 2021 I ACE. All rights reserved. 3
Oil Production
Oil production in ASEAN was declining. In most AMS, it hit the lowest point in the last decade in 2020.

Key highlights:
▪ Indonesia and Malaysia are still
the major oil producers in the
region, accounting for around
70% of the region’s total
production.
▪ Delayed operational and drilling
activities caused by COVID-19
impacts and weather issues.
▪ Under-performance of new wells.
▪ Mature oil fields and lack
development of new oil fields.

ASEAN Oil & Gas Updates I September 2021 I ACE. All rights reserved. 4
Gas Production
Natural gas production was relatively stable over the last five years, but there was a declining trend from 2019 to 2020.

Key highlights:
▪ Malaysia and Indonesia are still
the major producers in the
region.
▪ Delayed operational and lower
gas demand caused by
COVID-19 impacts.
▪ Reduction of LNG cargo
capacity and production
operational problems on both the
consumer and external sides.

ASEAN Oil & Gas Updates I September 2021 I ACE. All rights reserved. 5
Oil Reserves
Total proven oil reserves decreased around 20% in 2020 compared to 2010 levels.
There were no significant additional reserves identified in
the last decade due to exploration challenges, especially in
deep-water areas. Also, the low oil price hindered
investment in more challenging fields, and unstable political
landscapes led to complex business environments.
ASEAN Oil & Gas Updates I September 2021 I ACE. All rights reserved.
Concerned about the security of supply, countries are exploring
various strategic plans, such as: Exploration and development of new
oil field discoveries, Creating a conducive investment environment,
Effective well service and well workovers, Infill drilling, Enhanced oil
recovery (EOR) techniques, Import of crude oil and/or oil products,
Diversification of energy sources, i.e., natural gas and renewable
energy.
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Gas Reserves
Total proven gas reserves decreased around 35.1% in 2020 compared to 2010 levels.
The decrease is attributed to small new gas field discoveries,
the low gas price, lack of gas infrastructure that hindered
upstream investment and higher operating costs in high CO2
content gas fields.
ASEAN Oil & Gas Updates I September 2021 I ACE. All rights reserved.
Strategic plans to secure energy supply could be achieved through:
i) Supporting new gas field discoveries, especially deep-water areas,
ii) Reliable support to gas infrastructure development, i.e., pipelines,
floating storage and regasification units (FSRU) and regasification
terminals, iii) Effective well service and well workovers, and infill
drilling, iv) Diversification of energy sources to include renewable
energy, v) Creating attractive business models for high CO2 content
gas fields, and vi) Exploring non-conventional hydrocarbon
development. 7
Upstream & Downstream Activities
From exploration and production activities, to refinery and distribution.
→ Upstream
• Cambodia started the first oil production in Block
A (December 2020).
• Indonesia conducted the exploration drilling and
seismic testing in several areas. 15 projects with
potential 9,782 BOPD and 145 MMSCFD
additional production were completed.
• Malaysia’s Petronas has broad portfolio of
resources in more than 20 countries. However,
there was a declining production and export of oil
and gas due to weak demand and the slower
recovery efforts.
• Myanmar runs 53 onshore and 51 offshore oil and
gas blocks.
ASEAN Oil & Gas Updates I September 2021 I ACE. All rights reserved.
→ Downstream
• Construction of LNG terminal with capacity of
three million tons per year in Koh Kong Province,
Cambodia, is to be started in 2022, and CNCG
began its LNG business in 2020 with ISO Tanks.
• New petroleum refinery in Lao PDR was
commissioned (November 2020).
• Myanmar has three refineries (51,000 barrels per
day) and five fertiliser plants (2,012 MTD) in
operation.
• Commissioning plan of Southern Petrochemical
Complex in Ba Ria, Vietnam, in 2022 and Dung
Quat Refinery Upgrading and Expansion Project in
2025.
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Oil and Gas Prices
The oil price went negative for the first time in history on 20 April 2020; WTI was minus USD 37.63/bbl.
▪ From 2015, the oil price has shrunk from around USD 100/bbl to
USD 40/bbl. Further fluctuations ranged from USD 40/bbl to
USD 70/bbl afterwards.
▪ In 2020, the crude oil price dropped sharply due to the Saudi
Arabia – Russia oil price war and COVID-19 pandemic.
▪ The oil price has rebounded in 2021 to more than USD 60/bbl.
This is due to increasing global economic activity.
ASEAN Oil & Gas Updates I September 2021 I ACE. All rights reserved.
▪ The 2020 Natural Gas US Price was the lowest price since 2000.
▪ The natural Gas US Price rebounded in 2021 (USD
2.8/MMBTU) as a result of global economic recovery, cold
weather and supply disruptions. It is projected that the price will
remain stable and increase to USD 4/MMBTU in 2035.
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Oil Consumption
In 2020, all AMS experienced reduction in oil consumption due to COVID-19 impacts.

▪ Indonesia had the largest reduction in oil consumption: 24.4% compared to 2019.
▪ Indonesia and Thailand accounted for around 55.6% of the region’s total oil consumption in
2020.
▪ Oil was used mainly in the transportation sector (around 72%).

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Gas Consumption
In 2020, all AMS also experienced reduction in gas consumption due to COVID-19 impacts.

▪ Malaysia had the largest reduction in gas consumption of 14.9% compared to 2019.
▪ Indonesia and Malaysia accounted for around 66.2% of the region’s total gas consumption in 2020.
▪ Natural gas consumption had the highest CAGR of 5.7% to support the region’s rapidly growing industrial sector.
▪ Gas consumption in Malaysia was affected by coal because it has become increasingly economically competitive relative to natural gas for
power generation.

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Oil Stockpiling Updates
In most countries, oil stockpiling is intended to ensure energy security of supply.

• Current fuel stock (reserve + commercial): petroleum

•Maintain a country-wide stock (CWS) of 21 days
BRN for sustainable and continuous fuel supply to the
nation.
•Maintain 30 days’ commercial oil stockpiling and
CAM
five days Strategic Petroleum Reserve (SPR).
•Currently no mandatory operational stock for the
fuel oil wholesale/trading business enterprises;
INA
•Fuel operational stocks 21-23 days (oil products
and LPG).
MYR products for 36 days, diesel fuel for 35 days, jet fuel for
120 days.
• Thirty days’ supply of crude and products for the
refiners; 15 days supply of products for
PHI
importers/bulk suppliers; and seven days supply of
LPG for LPG importers.
SIN • The government has set no oil stockpiling obligation.

•The government required the emergency reserve

fuel to be sufficient for: 21 days for import – • Total oil stock for 69 days: 51 days of in-tank oil stock
LAO THA
export companies and 10 days for distribution and 18 days of in-transit crude oil.
companies.
•The government has set no oil stockpiling
MAS VNM • Petroleum product reserve for 30 days.
obligation.

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COVID-19 Impacts
COVID-19 has impacted oil and gas upstream and downstream activities in the ASEAN region.

The 2020 low oil and gas production was due to low demand brought about by
the COVID-19 pandemic.

In 2020, the crude oil price dropped due to low demand attributed to severe
restrictions on movement and economic activities during the pandemic.

Such reductions in oil and gas consumption were due specifically to mobility
restrictions and the slowing down of the global economy.

Delayed several projects related to deep-water drilling projects, opening of

bidding applications, oilfield development and the closing of oil refineries.

The low demand and delayed projects resulted in unfavourable financial

conditions, strict operational spending and preservation of liquidity.

Plunging oil and gas prices made it attractive to stockpile LNG and also find
available storage to hoard crude oil for when fuel prices rise again.

ASEAN Oil & Gas Updates I September 2021 I ACE. All rights reserved. 13
 Abbreviations Acknowledgment
ACE ASEAN Centre for Energy OPEC Organization of the Petroleum Exporting Countries ▪ This publication is for reference only. All graphs and charts presented in
this report are based on data sources. It is also noted that the data sets
AEDS ASEAN Energy Database System R/P Reserve-to-Production
may not be complete for all countries. Therefore, we only showed
AEO6 The 6th ASEAN Energy Outlook RE Renewable Energy completed data sets for selected countries. ACE cannot confirm the
Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan
methodologies of third-party data sources.
AMS ASEAN Member States SKK Migas Gas Bumi or Special Task Force for Upstream Oil and Gas Business
Activities ▪ Data sources include data and information available from the ASEAN
APAEC
ASEAN Plan of Action for Energy
SPR Strategic Petroleum Reserve
Energy Database System (AEDS), official submissions by ASEAN Member
Cooperation States, and various available public sources.
ASCOPE ASEAN Council on Petroleum TFEC Total Final Energy Consumption
▪ Oil and Gas Production: BP2021, SKK Migas, MEMR of Indonesia,
ASEAN Association of Southeast Asian Nations WTI West Texas Intermediate World Atlas Data.
BP British Petroleum ▪ Oil and Gas Reserves: BP2021, SKK Migas, EIA.
CAGR Compound Annual Growth Rate Units
▪ Oil and Gas Prices: BP2021, Macrotrends, Ycharts.
▪ Oil and Gas Consumption: AEDS, AEO6, ACE’s estimation, EIA.
CBM Coalbed methane bbl Barrels

CNCG Concentrated Non-Condensable Gas BOPD Barrel Oil per Day ▪ This publication was prepared by Suwanto and Beni Suryadi from the
Power, Fossil Fuel, Alternative Energy and Storage (PFS) Department.
CO2 Carbon dioxide GW Gigawatts

CWS Country-wide Stock m3 Cubic metre

▪ ACE colleagues Gabriella Ienanto, Adhityo Gilang Bhaskoro, Silvira Ayu
Rosalia, Rizky Aditya Putra, and Dynta Trishana Munardy provided helpful
EIA Energy Information Administration MBOPD Millions of Barrels of Oil per Day review and support.
EOR Enhanced Oil Recovery MMBTU Metric Million British Thermal Unit ▪ Review and inputs were also provided by the ASEAN Member States,
FSRU Floating Storage Regasification Unit MMSCFD Million Standard Cubic Feet per Day
ASCOPE Secretariat, and ASCOPE members.
ISO
International Organization for
Standardization
MTD Metric Tonnes per Day ▪ Design and publication were supported by the ASEAN Climate Change
and Energy Project (ACCEPT).
LNG Liquified Natural Gas TWh Terawatt-hour

LPG Liquefied Petroleum Gas USD United States Dollar

▪ Cover photo by Unknown Author is licensed under CC BY-NC-ND.
MEMR Ministry of Energy and Mineral Resources Contact: pfs@aseanenergy.org.
Version: 8 September 2021.

ASEAN Oil & Gas Updates I September 2021 I ACE. All rights reserved. 14
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