DEVELOPMENTS IN THE OFFSHORE UPSTREAM OIL & GAS MARKET IN INDONESIA

MARE FORUM PRESENTS THE GLOBAL FORUM 4th MARITIME INDONESIA 2012 Nova Y. Mugijanto Head of Offshore INSA TOPICS

PROSPECT OF OFFSHORE VESSEL BUSINESS IN INDONESIA

TYPE OF VESSEL & DEMAND

REGULATIONS

2 I. PROSPECT OF OFFSHORE VESSEL BUSINESS IN INDONESIA

From Onshore to Offshore

From West to East Indonesia (Remote area)

From shallow to deep water

From oil to natural gas

3 INDONESIA’S OIL & GAS RESERVE

Fosil Energy Reserve Production Ratio R/P Source: Ditjen Migas Oil 7,76 billion barel 346,38 million barel 22

Natural gas 157,14 TSCF 2,9 TSCF 54 4 BASIN LOCATION IN INDONESIA

FROM ONSHORE TO OFFSHORE

Exploration Areas (60 Basin) Source: Ditjen Migas Basin on production stage (16) Basin has been drilled, hydrocarbon not yet found (15)

Basin hydrocarbons found, not yet production (7) Basin not yet explored (22)

5 INDONESIA MIGAS WORK AREA MAP

FROM ONSHORE TO OFFSHORE

TOTAL PRODUCTION SHARING CONTRACTOR (PSC) Source: Ditjen Migas . PSC Exploration : 160 WA . PSC Development : 13 WA . PSC Production : 55 WA 228 WA (52% Onshore; 48% Offshore) 6 INDONESIA PETROLEUM BIDDING FIRST ROUND YEAR 2011

FROM ONSHORE TO OFFSHORE

Total Work Area of New Migas = 19 Work Area (10% Onshore; 90% Offshore) Source: Ditjen Migas 7 Discoveries in Mostly Tertiery Jurrasic Plays 1998-2008

Western part Eastern part

FROM WEST TO EAST Deep Water Area Source: BP Migas 8

Migas Work Area Map Based on Water Depth

FROM SHALLOW TO DEEP WATER

. Water Depth 0 – 100 m = 61 WA (45%) Source: Ditjen Migas . Water Depth 100 – 500 m = 26 WA (20%) . Water Depth 500 – 1500 m = 31 WA (23%) . Water Depth > 1500 m = 15 WA (12%) 9 FROM OIL TO GAS Decrease in Oil Production but increase in Gas Production. This shows the conversion in Energy supply from Oil to Gas

Source: BP Migas 10 II. TYPE OF VESSEL & DEMAND

Activity and Type of vessels

Vessels Demand (Exploration Activities)

11 ACTIVITY AND TYPE OF VESSELS ACTIVITY TYPE OF VESSELS NO. STAGE EXPLORATION EXPLOITATION EXPLORATION EXPLOITATION 1 Survey • Seismic • Seismic Vessels for: Same for exploration plus • Geophysical • Geophysical • Seismic vessels for: • Geotechnical • Geotechnical • Geophysical • Meteo / • Meteo / Oceanography • Geotechnical • Pre / Post-Installation • Pre / Post-Installation

2 Drilling Exploration Exploitation/ Development • Drill Ship Same for exploration • Rig (SemiSub, plus: Jack-Up) • Tender Assist • Supporting ship Barge/SemiSub Rig Rig (AHTS, • Platform Rig Warebarge, PSV, Fast MP/Crew)

3 / • Construction Barge/Vessel for: Installation / • Installation • Derrick/Crane dan Lay (pipe, umbilical, cable) Drilling • Comissioning • construction, Accomodation • Abandonment/Discharging • Dredging / Trenching

4 Production/ Production, Operations Support, Inspection, Vessels: FSO, FPSO, DSV(+ROV), AHTS, Tug, PSV, Maintenance Maintenance (ShutDown) Crew/Multipurpose, Vessel/Barge accomodation. 12 Source: IPA TYPE OF MAIN VESSEL USED IN SURVEY STAGE

SURVEY VESSEL (SEISMIC, GEOTECHNICAL, GEOPHYSICAL )

13 TYPE OF MAIN VESSEL USED IN DRILL STAGE

DRILL SHIP JACK UP RIG

SWAMP BARGE RIG TENDER ASSIST RIG SEMI SUB RIG

14 TYPE OF MAIN VESSEL USED IN CONSTRUCTION & INSTALLATION

DERICK / CRANE BARGE SUBSEA INSTALLATION VESSEL PIPE LAY BARGE

DIVING SUPPORT VESSEL ROV’S ACCOMODATION BARGE 15 TYPE OF MAIN VESSEL USED IN PRODUCTION STAGE

OIL FSO FPSO LNG CARRIER

SUPPLY VESSEL (PSV) CREW VESSEL AHT / AHTS

16 FORECAST VESSELS DEMAND (NEW EXPLORATION ACTIVITIES)

Forecast Vessels Demand 2012 No Activity Type Jobs

I Survey Survey (Seismic) 2D & 3D 20

II Drilling Drilling Ship, Semi Submersible Rig, Jack Up Rig. 25

III Offshore Construction Pipe Lay Barge, Derrick / Crane Barge > 200 T 15

Accomodation Work Barge, Anchor Handling Tug IV Offshore Support & Supply, , Platform Supply 80 Vessel (PSV), Crew Boat.

17 III. REGULATIONS

Vessel Procurement Process Through The Tender Mechanisms Regulated by BP Migas Work Procedures Manual (PTK 007)

Roadmap based on UU No. 17/2008, PP 22/2011, PM 48/2011

Joint Venture For Indonesian Shipping Company: 51%, Local Partner and 49% Foreign (Based on Presidential Decree No. 36/2010 Regarding Foreign Investment Policy)

18 ROADMAP BASED ON UU NO. 17/2008, PP 22/2011, PM 48/2011 NO. ACTIVITY TYPE OF VESSEL 2012 2013 2014 2015 1 Offshore support AHTS Vessel more than 5000 BHP with Dynamic Position

Platform Supplay Vessel and

Diving Support Vessel

Offshore construction Diving Support Vessel

2 Dredging Drug Head Suction Hopper Dredger

and Tailing Suction Happer Drugger

3 Salvage and Heavy Floating Crane, Heavy Crane

Under water work Barge and Survey Salvage

Offshore construction Derrick/Crane, Pipe/Cable/Sub

Umbilical Riser Flexible Laying Barge

4 Migas Survey Seismic, Geophysical, and Geotechnical

5 Drilling Jack Up Rig, Semi Submersible Rig, Deep Water Drill Ship, Tender Assist

Rig & Swamp Barge Rig 19 Thank You

Any questions can be sent through INSA email: 20 [email protected]