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“Pertamina: the Backbone of National Energy Security”

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“Pertamina: the Backbone of National Energy Security” 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 Page 2 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 Page 3 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 Page 4 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 ~$40b USD) Leadership in existing core Growth in new businesses Increase efficiency in PSO E&P PetChem Oil products Leading Asian NOC: 2.2 Largest petchem player in Maintain position of strength mmboepd production with Indonesia with 35% market with 60% market share; new domestic leadership (50%) share, high margins through service model through “New and int’l foot-print (~30% of integration pasti pas” and NFR own prodn.) Midstream gas Coal LPG Integrated gas champion with Leader in alternate technology Optimize supply chain and trans-Sumatera and trans- (e.g. CBM, UCG) while infrastructure Jawa gas infra-structure maximizing coal production Shipping Refining Biofuels Support own supply chain and Economically competitive Serving mandate of 20% also build third party service refining capacity; Top quartile blend; upstream presence to model operating performance reduce losses and supply risk Industrial fuels & lubes Maintain position of strength Power with over 50% market share, One of the largest Indonesian while sustaining profitability IPP player with ~ 3-5 GW capacity Trading Optimize supply chain and improve profitability Project & Technology Center: Technology leader on CBM, Geothermal, EOR and deepwater; Strong project executor with delivery on time and within budget Organization & Capability: Accountability and delivery; Employer of choice to attract and retain best talent Page 5 FORTUNE 500 : Pertamina is Ranked 122 A reflection to be a global company Total Revenue ( Billion USD ) 67,30 70,92 71,10 No. Company Revenues 48,65 ($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. Page 6 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 Page 8 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 Page 10 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 Page 12 Wilayah Kerja Migas Domestik – Eksplorasi & Produksi PT Pertamina Hulu Energi Page 13 Wilayah Kerja Migas Domestik – Eksplorasi & Produksi PT Pertamina EP Cepu Alas Dara Kemuning PT Pertamina EP Cepu Page 14 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%) Page 15 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. Page 16 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 Page 17 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%) Page 18 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) Page 20 LNG For Vehicle
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