Pertamina Energy Outlook 2015
“Pertamina: the backbone of national energy security”
By : Ahmad Bambang Director, PT Pertamina (Persero)
Jakarta, 3-4 December 2014 PT Pertamina (Persero) Jln. Medan Merdeka Timur No.1A Jakarta 10110 CONFIDENTIAL AND PROPRIETARY Telp (62-21) 381 5111 Fax (62-21) 384 6865 Any use of this material without specific permission of Pertamina is strictly prohibited http://www.pertamina.com Agenda
1 Pertamina’s Energy Policy & Strategy
2 Pertamina’s Business Overview
3 Upstream Business
4 Midstream Business
5 Downstream Business
6 New & Renewable Energy Business
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Agenda
1 Pertamina’s Energy Policy & Strategy
2 Pertamina’s Business Overview
3 Upstream Business
4 Midstream Business
5 Downstream Business
6 New & Renewable Energy Business
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Pertamina’s Corporate Vision, Mission and Values Challenge to synchronize national energy security and energy commercialization
Vision To be a world class national energy company
To carry out integrated core business in oil, gas, & renewables Mission based on strong commercial principles
Values Clean, Competitive, Confident, Customer Focus, Commercial, Capable
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Full production Banyu Urip di thn 2015. Produksi PEPC pada RJPP 2012-2016 lebih tinggi dibandingkan RJPP 2011-2015 karena percepatan produksi gas JTB, Cendana, dan Kedung Keris. Pertamina’s Aspiration is To Be a Fortune 100 “Asian Energy Champion” by 2025 Aligned with national mission
“Asian Energy Champion” ‘Fortune 100’ position (Revenue ~$200b USD, EBITDA ~$40b USD)
Leadership in existing core Growth in new businesses Increase efficiency in PSO
E&P PetChem Oil products Leading Asian NOC: 2.2 Largest petchem player in Maintain position of strength mmboepd production with Indonesia with 35% market with 60% market share; new domestic leadership (50%) share, high margins through service model through “New and int’l foot-print (~30% of integration pasti pas” and NFR own prodn.)
Midstream gas Coal LPG Integrated gas champion with Leader in alternate technology Optimize supply chain and trans-Sumatera and trans- (e.g. CBM, UCG) while infrastructure Jawa gas infra-structure maximizing coal production
Shipping Refining Biofuels Support own supply chain and Economically competitive Serving mandate of 20% also build third party service refining capacity; Top quartile blend; upstream presence to model operating performance reduce losses and supply risk
Industrial fuels & lubes Maintain position of strength Power with over 50% market share, One of the largest Indonesian while sustaining profitability IPP player with ~ 3-5 GW capacity Trading Optimize supply chain and improve profitability
Project & Technology Center: Technology leader on CBM, Geothermal, EOR and deepwater; Strong project executor with delivery on time and within budget Organization & Capability: Accountability and delivery; Employer of choice to attract and retain best talent
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FORTUNE 500 : Pertamina is Ranked 122 A reflection to be a global company Total Revenue ( Billion USD )
67,30 70,92 71,10 No. Company Revenues 48,65 ($b) 38,87 1 Royal Dutch Shell 481,7
2 Wal-Mart Stores 469,2
3 Exxon Mobil 449,9 2009 2010 2011 2012 2013 4 Sinopec Group 428,2
Net Profit ( Billion USD ) 5 China National 408,6 Petroleum 3,06 2,76 …. …………….. ……. 2,40 75 Petronas 94,3 1,72 1,86 …. ……………... ……. 122 PERTAMINA 70,9
135 Unilever 66,0
ConocoPhillips 63,4 2009 2010 2011 2012 2013 144
In 2013, Pertamina was ranked 123 on the Fortune Global 500. The only and the first time Indonesian company to be included in the Fortune Global 500 listing.
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Indonesia’s Energy Overview Indonesia’s economy will demand more energy while entering a resource-intensive stage of development
Energy consumption per capita Million BTU per capita, 1970-2010 250
200 USA
Indonesia 2030 Australia 150 projected Historical range for energy South Korea Germany consumption France evolution 100 UK
Japan
50 Singapore China Thailand
India 0 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 GDP per capita Real $US PPP/Person
SOURCE: IEA; Global Insight; McKinsey Page 7
Agenda
1 Pertamina’s Energy Policy & Strategy
2 Pertamina’s Business Overview
3 Upstream Business
4 Midstream Business
5 Downstream Business
6 New & Renewable Energy Business
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Performance Highlight Pertamina securing the national interest while enhancing the corporate value
Sales & Other Operating EBITDA Net Income Geothermal Production Revenues Million USD Million USD Million USD Million Ton 70.924 71.102 6.657 3.067 67.297 6.057 2.766 68,8 5.592 68,1 67,1 67,5 67,7 2.405 47.559 4.396 1.811 35.135 3.541 1.547
200 201 201 201 201 200 201 201 201 201 200 201 201 201 201 200 201 201 201 201 9 0 1 2 3 9 0 1 2 3 9 0 1 2 3 9 0 1 2 3 Fuel Production Volume Fuel Product Sales Crude Oil Production Gas Production (10 Main Products) (10 Main Products) MMBO BSCF Juta BBL Juta KL
73,6 558,6 563,2 557,7 249,9 64,6 64,9 65,4 70,0 70,6 71,8 532,9 235,8 237,0 238,8 239,0 64,4 502,1 58,5 59,8
200 201 201 201 201 200 201 201 201 201 200 201 201 201 201 200 201 201 201 201 9 0 1 2 3 9 0 1 2 3 9 0 1 2 3 9 0 1 2 3 Source: Pertamina’s Annual Report Page 9
Agenda
1 Pertamina’s Energy Policy & Strategy
2 Pertamina’s Business Overview
3 Upstream Business
4 Midstream Business
5 Downstream Business
5 New & Renewable Energy Business
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Upstream Production Highlight In order to increase production, Pertamina focus on M&A, exploration, development, and also development of unconventional energy as an alternative to fulfill the gap between energy demand and conventional energy production
New exploration capex will be ~2,200 ~15 % of capex, relative to ~20% for Statoil and ~60% for 600 Petrobras ~200 ~150 Pertamina ~300 ~900 oil and gas ~50 ~800 ~100 production, 2025 Kbpd
Existing & EOR Total Existing IP increase1 Other Domestic CBM & Int’l Total own acreage fields licenses2 exploration Shale Gas expansion3 Exploration
Source: McKinsey Page 11
Wilayah Kerja Migas Domestik – Eksplorasi & Produksi
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Wilayah Kerja Migas Domestik – Eksplorasi & Produksi
PT Pertamina Hulu Energi
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Wilayah Kerja Migas Domestik – Eksplorasi & Produksi PT Pertamina EP Cepu Alas Dara Kemuning PT Pertamina EP Cepu
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Expanding upstream operation globally Pertamina presence in around 8 countries….
International Asset Under exploration Under development Under production 10 working areas
Block West Qurna 1 (10%)
Block 10 & 11.2 Block Vietnam Menzel Lejmet (65%) (10%) ALGERIA IRAQ El Merk Ourhoud Algeria VIETNAM Block SK-305 Malaysia MALAYSIA (30%)
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Wilayah Kerja Migas Luar Negeri – Eksplorasi & Produksi Conocophillip Algeria PT Pertamina Hulu Energi
(PT Pertamina Internasional E&P (Irak – West Qurna 1)
• Algeria & Irak are onshore production • Blok Vietnam & SK-305 areOffshore; vietnam under eksploration & SK 305 under ekspolartion/development.
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Agenda
1 Pertamina’s Energy Policy & Strategy
2 Pertamina’s Business Overview
3 Upstream Business
4 Gas Business
5 Downstream Business
6 New & Renewable Energy Business
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Gas Infrastructure Connecting supply and demand through Integrated Gas Infrastructure
Eksisting Daerah Surplus Gas PT Arun NGL PT Badak NGL Design Capacity : 12.5 MTPA Design Capacity : 22.5 MTPA Rencana Daerah Defisit Gas No. of Train : 6 Trains No. of Train : 8 Trains JARGAS: Arun LNG Receiving & Regas. Terminal Existing Design Capacity : 3 MTPA (storage 12MTPA) Main Customer : PLN & Local Industries In progress Akan diintegrasikan dengan Pipa Arun Belawan Rencana Lhokseumawe Tarakan
Bulungan
Bontang
Jambi Palembang Donggi Senoro LNG Plant Prabumulih Ogan Hilir Design Capacity : 2 MTPA Project Owner : Mitsubishi & KOGAS (59.9%), Bekasi, Pertamina (29%), Cirebon, Subang Sidoarjo, Medco (11.1%) Depok, Semarang Bogor Surabaya
Blora
FSRU Nusantara Regas Design Capacity : 3 MTPA Project Owner : PTM (60%),PGN (40%) FSRU Cilacap Design Capacity : 1,5 MTPA FSRU Jawa Tengah Project Owner : Pertamina (100%) Design Capacity : 3 MTPA Pipa Tegalgede – Muarakarang Project Owner : Pertamina (100%) Project Owner : Pertamina (100%)
Land Base Jabar Pipa Gresik Semarang Design Capacity : 2 MTPA Project Owner : Pertamina (100%) Project Owner : Pertamina (100%)
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CNG Roadmap Another energy conversion program by developing CNG infrastructure for transport sector CNG Infrastructure Development Plan Conversion program will be implemented gradually in several big cities in Indonesia.
Pertamina has been assigned the Government to develop and operate CNG stations to support the conversion program
unit cumulative 111 97 111 CNG 75 85 65 Station in 2019
2015 2016 2017 2018 2019
Page 19 Note: number of existing CNG station until 2014: 37 units
Development of City Gas for households
Lhokseumawe
Tarakan Bulungan
Sorong Jambi Bontang Palembang
Ogan Hilir Prabumulih Sengkang Subang Sidoarjo, Surabaya Semarang Bekasi, Blora Buleleng Cirebon, Existing city gas Depok, Bogor In progress city gas Next city gas development
• Government (Ditjen Migas) has developed City Gas in 16 cities (a total of 57.857 households) • City gas development is done in 2 cities (2009), 4 cities (2010), 5 cities (2011), 5 cities (2012) • For the household sector , the Government will allocate 0.5 MMSCFD of gas in each city. • The Government has appointed PT Pertamina (Persero) to operate city gas, currently in 3 cities (Jambi, Prabumulih, and Sengkang) • Initiation Jargas project can be used as a stimulus for further development of the pipeline in order to connect other areas not reached by the gas infrastructure (including to industrial areas)
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LNG For Vehicle project in Java Expanding Integrated Gas Value Chain & Maximizing Downstream Opportunities
Project location and Onshore LNG Facilities issues
Onshore Storage Tank: • Jakarta/Merak • Semarang • Tuban/Tanjung wangi • Cilacap
LNG Refueling Station: • Jakarta • Cirebon • Semarang • Surabaya
LNG for Vehicle potential partner Successful Pilot Project LNG Vehicle PT Badak NGL
Fuel conversion from diesel to dual fuel LNG Refueling LNG Mobile LNG ISO Tank August 2012 Station* Refueling Unit Trailer Location : Pilot project at LNG demand profile PT Badak NGL, Bontang East Kalimantan Gas Supply (x1000 metric ton) 2013 2014 2015 2016-2019 2020-2022 LNG for Vehicle 0.113 1.239 4.617 69.585 139.171 Java
*) LNG Refueling Station: Storage tank, dispenser, facilities (cryogenic pump, piping facilities, etc Page 21
LNG For Mining Expanding Integrated Gas Value Chain & Maximizing Downstream Opportunities
LNG supply scheme Pilot Project LNG for Long Haul Vehicle at Indominco Fuel conversion from diesel to LNG fuel for heavy duty vehicles in Indominco and KPC (mining company) in East Kalimantan. PILOT PROJECT : November 2013 Location : Pilot Project at PT Badak NGL, Bontang East Kalimantan with Indominco Mining.
LNG Storage LNG Trailer Delivery point Pilot Project LNG for Heavy Equipment at KPC tank (head truck, LNG for modification trailer, ISO hauling truck Trial Period: Nov 2013 – Mar 2014 for LNG tank) with Deliver from LNG Badak by Trucks, 3 – fueling station capacity 20 m using Isotank 20 ft. LNG demand profile – Maximum delivery 2 trucks 20 ft per day. – LNG Loading/unloading at PT Badak Gas Supply (x1000 Metric Ton) *) – LNG Loading /unloading at KPC site to ’13 ’14 ’15 ’16 ’17 ’18 ’19 ’20 ’21 ‘22 trucks.
0.08 112 451 566 615 669 727 789 857 931 – Alternative 1: by LCT. • Deliver from Bontang by LCT est 400 isotanks (est for 50 mmsCFD) – Alternative 2: by mini LNG vessel + *)LNG for Mining demand forecast profile including Isotank Indominco and KPC (but it has not taking into account – Need to have delivery trucks, isotanks other potential company such as Arutmin Indonesia, in KPC to accommodate the quantity Berau Coal, Adaro, and Antam).
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Agenda
1 Pertamina’s Energy Policy & Strategy
2 Pertamina’s Business Overview
3 Upstream Business
4 Midstream Business
5 Downstream Business
6 New & Renewable Energy Business
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Refinery Development The objectives are to make the existing refineries competitive and expanding its capacity ..
New Grass Root Refinery Unit V Refinery in Bontang Balikpapan with PPP scheme (plan) Refinery Unit II Capacity: 260 mbsd Dumai NCI: 3.27 Capacity: 170 mbsd NCI: 7.5
Refinery Unit VI Balongan Refinery Unit VII Capacity: 135 mbsd Kasim Refinery Unit III NCI: 11.9 Capacity: 10 mbsd Plaju NCI: 2.4 Capacity: 135 mbsd NCI: 3.1
Refinery Unit IV New Grass Root Refinery in Cilacap Tuban with partnership Capacity: 350 mbsd scheme with Aramco NCI: 3.98
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Refining Development Master Plan (RDMP) Pertamina will transform its refining business by upgrading up to 5 major existing refineries…..
Dumai refinery
Balikpapan refinery Plaju refinery
Balongan refinery
Cilacap refinery
Crude flexibility Complexity Product quality Crude quantity ~2% S 8-9 EURO IV x2 of crude flexibility NCI up from EURO II increased capacity
Sulfur handling limit from Complexity improved Gasoline from 500 to <50 ppm S From 820,000 BPD 0.4% to ~2% S from 5 to 8-9 Diesel from 3,500 to <50 ppm S to 1,610,000 BPD
SOURCE: Pertamina Page 25
Grass Root Refinery (GRR) Building World-Class Refining Capacity for Indonesia’s Energy Needs….
New Grass Root Refinery in Bontang with PPP scheme (Government plan)
Bontang refinery
Tuban refinery
New Grass Root Refinery in Tuban B to B scheme with Aramco
Crude flexibility Complexity Product quality Crude quantity ~2% S 10-12 EURO IV - V 300,000 of crude flexibility NCI BPD
Sulfur handling limit up to World class Complexity Gasoline 10 - 50 ppm S Can be increased to 400,000 ~2% S Diesel 10 - 50 ppm S BPD
SOURCE: Pertamina Page 26
Downstream – Marketing & Trading : Increasing demand leads infrastructures to be upgraded
SABANG Region I Region VI KRUENG RAYA LHOK SEUMAWE Region VII MEULABOH INST. MEDAN GROUP NATUNA GROUP TARAKAN SIANTAR KISARAN SIMEULUE Region VIII TAHUNA BERAU TOBELO SIBOLGA UP. II - DUMAI BITUNG TT TG. UBAN TOLI - TOLI G. SITOLI SIAK KSO Kabil TERNATE MOUTONG GORONTALO TT P. SAMBU KIJANG PONTIANAK SINTANG SAMARINDA PARIGI TEMBILAHAN LABUHA BIAK TT. TLK. KABUNG LUWUK SORONG BALIKPAPAN DONGGALA JAMBI AMPANA SANANA PANGKAL KETAPANG POSO MANOKWARI BALAM KOLONDALE UP. VII KASIM KERTAPATI PULANG PISAU SERUI LUBUK LINGGAU BANGGAI JAYAPURA PARE - PARE WAYAME LAHAT SAMPIT KOLAKA BULA NABIRE TANJUNG PKL.BUN KENDARI UP. III - PLAJU PANDAN BANJARMASIN NAMLEA FAK - FAK PALOPO MASOHI PULAU BAAI BATURAJA KAIMANA
KOTA BARU RAHA PANJANG TIMIKA
Region II MAKASSAR BAU -BAU TUAL IJG DOBO CIKAMPEK TT. GEREM BALONGAN PENGAPON PADALARANG TEGAL CEPU CAMPLONG UJUNGBERUNG MAOS TUBAN TASIKMALAYA TERAS ISG MAUMERE CILACAP REWULU MALANG MANGGIS BIMA KALABAHI MERAUKE TT LOMANIS BADAS REO UP. IV TG. WANGI SAUMLAKI Region III AMPENAN CILACAP ENDE L. TUKA DILI WAINGAPU ATAPUPU
KUPANG Region IV Region V
Additional Infrastructures needed towards 2025 …
3,6 mil KL # 32 Jetties #31 vessels
2,200 KL/hour 500 K Ton
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Downstream – Marketing & Trading : Pertamina Operational Area Providing 5000+ gas station outlet to secure Indonesia fuel need…..
July 2014 Total Gas Stations 5,161
Source: Pertamina’s Annual Report Page 28
Downstream – M&T : LPG Plants LPG Distribution Facilities LPG Depo/Terminal : 19 SPPBE/SPBE 3 kg : 323 Region I (SumUt, NAD, Riau, Kep. Riau dan SPPBE/SPBE/SPPEK 12&50 kg : 99 Sumbar) LPG 3 kg agents : 2639 LPG 12 & 50 kg agents : 608 Pkl. Susu Floating storage : 220,000 MT Natuna Tanker VLGC (@44,000 MT) : 3 P. NATUNA MEULABOH Medan TARAKAN Tanker semi-ref. (@10,000 MT) : 6 Tanker pressurized (@1,800 MT) : 9 SIBOLGA Skid tank : 938 P. BATAM G. SITOLI TOLI - TOLI SIAKDumai Bontang Tj. Santan BONTANG GORONTALO SINTANG MOUTONG Padang Tj. P. SAMBUUban PONTIANAK SAMARINDA DONGGALA SUBUNG JAMBI BALIKPAPAN Balikpapan POSO MANOKWARI PARIGI LUWUK CILIK RIWUT Jabung SAMPIT KOLONDALE BULA PALOPO BENGKULU BANGGAI PKL.BUN P. PISANG NAMLEA KENDARI MASOHI Palembang BANJARMASIN PARE - PARE FAK - FAK Plaju KOLEKA Region VI (Sulawesi, Kalimantan excl West KOTA BARU RAHA PANJANG BAU -BAU Kalimantan, Maluku, Papua) Region II (Sumsel, Lampung, UJ. PANDANG
Bengkulu, Jambi, Babel) Ujung Pandang TUAL
PLUMPANG
SEMARANG CAMPLONG MERAUKE
SURABAYA
MENENG MAUMERE Surabaya BADUNG KALABAHI REO SAUMLAKI AMPENAN L. TUKA BIMA ENDE DILI ATAPUPU TT. Manggis WAINGAPU
KUPANG Region III (DKI, western of Java &
Pontianak) Region IV (Central of Java & DIY) Region V (East Java, Bali & Nusa Tenggara)
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Downstream – Marketing & Trading : Operational Area Marketing and Distribution in Indonesia Pertamina handles the most complex distribution in the world in delivering fuel products
across the country… : Refining Units : Fuel Depot : Fuel Distribution Line : Back Loading Terminal : Transit Terminal : Ship to Ship SABANG
KRUENG RAYA
LHOK SEUMAWE
P. NATUNA MEULABOH UP. I - PKL. BRANDAN TARAKAN TAHUNA LAB. DELI
SIBOLGA BITUNG UP. II - DUMAI P. BATAM TOBELO G. SITOLI TOLI - TOLI SIAK TERNATE BONTANG GORONTALO SINTANG MOUTONG P. SAMBU TT. TLK. PONTIANAK SAMARINDA DONGGALA SUBUNG PABUHA BIAK KABUNG JAMBI SORONG BALIKPAPAN POSO MANOKWARI PARIGI LUWUK TT. CILIK RIWUT SANANA SERUI SAMPIT KOLONDALE WAY AME
PALOPO BULA BENGKULU BANGGAI JAYAPURA UP. III - PLAJU PKL.BUN P. PISANG NAMLEA NABIRE KENDARI MASOHI BANJARMASIN PARE - PARE FAK - FAK
KOLEKA KOTA BARU RAHA PANJANG TLK. SEMANGKA BAU -BAU UJ. PANDANG UP.VI TUAL DOBO PLUMPANG BALONGAN SEMARANG CAMPLONG
SURABAYA MENENG MERAUKE TT. MAUMERE UP. IV BADUNG KALABAHI TG. GEREM/MERAK CILACAP REO SAUMLAKI AMPENAN L. TUKA IMPORT BIMA ENDE DILI TT. TLK ATAPUPU MANGGIS KALBUT WAINGAPU KUPANG
IMPORT 5,161 unit Gas Stations, 603 APMS, 260 SPDN, 50 SPBN 113 Fuel Terminals, 3 Lube Oil Blending Plant 62 Aviations Depot M&T UPDATE 220 vessels (63 own, 157 chartered) 1,835 KM pipelines
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Downstream – M&T : Expansion Lubricant, Aviation (Avtur), Bunker
Lubricant Aviation Fuel (AVTUR) Korea Sales Area 2008-2013 Selatan 24 countries Jeddah Hongkong (JED) (HKG) Madina
Penang Bombay Bangkok (BKK)
Kuala Manila Lumpur (KUL) Singapore (SIN)
Implementing the concept of Conco Delco, Pertamina Aviation is at 10 international airports
Bunker Bunker charging operation using a third party by implementing the concept of Conco Delco:: 1. Singapura 2. Fujairah 3. Jepang 4. China 5. Jepang
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Agenda
1 Pertamina’s Energy Policy & Strategy
2 Pertamina’s Business Overview
3 Upstream Business
4 Midstream Business
5 Downstream Business
6 New & Renewable Energy Business
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New & Renewable Initiatives in line with Government interest in optimizing energy business, Pertamina enlarge the scope of activity by includeing new and renewable initiatives…
Environment Friendly Business to align with the Government Policy
**) PERTAMINA’S Indonesia’s Energy Mix 2011 Indonesia’s Energy Mix 2025 RENEWABLE 100% = 1,176 Mboe 100% = 2,785 Mboe ENERGY NRE *) PROJECTS NRE Coal Oil • Geothermal • Green Diesel • Bioethanol Oil • Bioavtur • Coal to Ethanol Gas • Wind Gas Coal • Waste to Energy • Hydro *) New & Renewable Energy **) Berdasarka Energy Mix ESDM “Primary Energy Mix 2025”
**) Source: MEMR Indonesia. Page 33
Thank You
Disclaimer These materials have been prepared by PT Pertamina (Persero) together with its subsidiaries, (the “Company”) and have not been independently verified. No representation or warranty, express or implied, is made and no reliance should be placed on the accuracy, fairness or completeness of the information presented, contained or referred to in these materials. Neither the Company nor any of its affiliates, advisers or representatives accepts any liability whatsoever for any loss howsoever arising from any information presented, contained or referred to in these materials. The information presented, contained and referred to in these materials is subject to change without notice and its accuracy is not guaranteed. These materials contain statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers with respect to, among other things, the operations, business, strategy, consolidated results of operations and financial condition of the Company. These statements can be recognized by the use of words such as “expects,” “plan,” “will,” “estimates,” “projects,” “intends,” or words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks, uncertainties, and assumptions and actual results may differ from those in the forward-looking statements as a result of various factors. Forward-looking statements contained herein that reference past trends or activities should not be taken as a representation that such trends or activities will necessarily continue in the future. The Company has no obligation and does not undertake to update or revise forward-looking statements to reflect future events or circumstances. These materials are highly confidential, are being given solely for your information and for your use and may not be copied, reproduced or redistributed to any other person in any manner. Unauthorized copying, reproduction or redistribution of these materials into the U.S. or to any U.S. persons as defined in Regulations under the U.S. Securities Act of 1933, as amended or other third parties (including journalists) could result in a substantial delay to, or otherwise prejudice, the success of the offering. You agree to keep the contents of this presentation and these materials confidential and such presentation and materials form a part of confidential information.
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