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Member Country Report of INDONESIA

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Member Country Report of INDONESIA CCOP-52AS/3-8 COORDINATING COMMITTEE FOR GEOSCIENCE PROGRAMMES IN EAST AND SOUTHEAST ASIA (CCOP) 52nd CCOP Annual Session 31 October - 3 November 2016 Bangkok, Thailand Member Country Report of INDONESIA Submitted by Indonesian Delegation/Geological Agency (For Agenda Item 3) COORDINATING COMMITTEE FOR GEOSCIENCE PROGRAMMES IN EAST AND SOUTHEAST ASIA (CCOP) CCOP Building, 75/10 Rama VI Road, Phayathai, Ratchathewi, Bangkok 10400, Thailand Tel: +66 (0) 2644 5468, Fax: +66 (0) 2644 5429, E-mail: [email protected], Website: www.ccop.or.th ANNUAL MEMBER COUNTRY REPORT Country: INDONESIA Period: 1 July 2015 – 30 June 2016 I. OUTREACH The technical activities have been reclassified into three sectors and seven programmes as follows: Geo-Resources (Mineral, Energy, Groundwater), Geo-Environment (Coastal, Geohazard, Environmental Geology), and Geo-information (Geo data and Information Management) GEO-RESOURCES SECTOR 1. MINERAL PROGRAMME 1.1. Summary Decreasing demand and controversy over the issuance of new Local Government Law in October 2014, caused mineral exploration and production activities to slow down although, data of some commodities of mineral resources, such as bauxite, copper ore, iron sand and nickel ore tended to increase due to improved data flow from iup holder to government (Figure 1) Figure 1. Bar charts of some mineral commodities resources and reserves of Indonesia 2011 - 2015 CCOP Member Country Report: INDONESIA 1 1.2. Annual Review of Individual Technical Activities In the second semester of 2015, besides surface survey, subsurface survey using geophysical methods and core drilling also have been carried out at 2 locations each; Sumbawa and Sanggau for geophysical survey and East Belitung and South Solok for core drilling (Figure 2) In the first semester of 2016, metallic mineral exploration has been at Palalawan Regency, Riau for tin and REE, Murung Raya Regency, Central Kalimantan, North Padang Lawas Regency, North Sumatera, Buru Regency, Maluku, Sanggau Regency, West Kalimantan and North Luwu, South Sulawesi for gold, Sentani Regency, Papua for nickel and Pringsewu Regency, Lampung for iron ore. Besides metallic mineral exploration, non metallic mineral exploration was carried out in several areas including gemstones at Aceh and Maluku. Figure 2. Location Map of Metallic Mineral Survey in 2nd Semester 2015 – 1st Semester 2016 1.3. Assistance Required from CCOP/Other Member Countries in Support of Future Activities A capacity building program in exploration methodology aspects and also a training program for integrated geophysical and geochemical data interpretation purposes are needed in order to improve exploration targets and to make new prospect discoveries. The exchange of various exploration experiences through establishment of a special forum dealing with relevant and actual issues between CCOP member countries would be helpful to cope with exploration problems encountered in any exploration project plan. 1.5. Others Comments Direct responses on reviews mentioned above for improvement of project outcomes and for perfecting any exploration plans would be kindly requested from the technical director of CCOP. 2 CCOP Member Country Report: INDONESIA Programme Contact Person: Hedy Hidayat Center for Mineral, Coal and Geothermal Resources Geological Agency of Indonesia Jl. Sukarno Hatta 444 Bandung, West Jawa, Indonesia Phone : +62-22-5202698; +62-22-5205572 Fax : +62-22-5226263 Email : [email protected] 2. ENERGY PROGRAMME 2.1. Hydrocarbons 2.1.1. Summary The total production areas are 27% of total area of the basins in Indonesia. The Oil reserve status on January 1st, 2015, is 7.30 billion barrels, a decrease of 0.07 billion barrels (0.95%) compared to petroleum reserves on January 1st, 2014 (7.38 billion barrels). For natural gas, there is an increase in reserves of 151.33 TCF or 1.36% increase compared to natural gas reserves on January 1st, 2014 (149.3 TCF) (Directorate General of Oil and Gas, 2015). On the other hand, there is the addition of condensate amounting to 789.18 BCF (Figure 3). Based on data of late 2015, National Reserve Potential of oil and gas is 5.2 billion barrels of oil equivalent, consisting of 2.7 billion barrels of oil and 14 trillion cubic feet of gas, estimated from 108 proven oil and gas discovery wells (KEN, 2016). Figure 3. Oil and Gas Reserve Map, Status January 1st, 2015 (Directorate General of Oil and Gas, 2015) 2.1.2. Annual Review of Technical Programs/ Activities Oil and gas are considered to be strategic resources for Indonesia. The country is estimated to have resources of 79,683 MMBOE in place (Figure 4). Indonesia also has identified some areas that have potential shale hydrocarbon with total resources of 574.07 TCF (Figure 5). CCOP Member Country Report: INDONESIA 3 Figure 4. Indonesian hydrocarbon resources map as of 1st January 2015 Figure 5. Indonesia Sedimentary Basins and Hydrocarbon Shale Potential (Geological Agency, 2011) To support the Government's policy to increase the reserve replacement ratio (RRR) to more than 100% for the next 5 years, exploration research activities of LEMIGAS during the years 2015 saw intensification of Oil and Gas Exploration in Eastern Indonesia and exploration for unconventional Oil and Gas resources. 2.1.2.1. Intensification of Oil and Gas Exploration in Eastern Indonesia The Intensification of Oil and Gas Exploration study is done in Atambua area, Nusa Tenggara Timurand Mamberamo area, Papua (Figure 6) and it is performed in order to find the new oil and gas resources as well as status improvement of the basins related to oil exploration. 4 CCOP Member Country Report: INDONESIA Study activities include geological and geophysical (G&G) surveys, processing and interpretation of geological, gravity, magnetic and magnetotellurics (MT) and audio Magnetotelluric (AMT) data as a basis for planning the seismic survey of the most potentially promising areas in 2016 which will be used as materials for petroleum system analysis. Figure 6. Location map of study area for Intensification of Oil & Gas exploration in Eastern Indonesia Region. 2.1.2.2. Unconventional Hydrocarbon in Palembang and Jambi Area South Sumatera. Based on the evaluation of available data, it can be concluded that the Late Oligocene Talangakar Formation (TAF) is estimated to have the best shale hydrocarbon potential, followed by Eocene – Early Oligocene Lemat / Lahat Formation (LEF / LAF). On the other hand, the Gumai Formation has a minimum potential due to having low TOC and maturity levels. Shale hydrocarbon resource calculation results in the Jambi and North Palembang Sub- Basins is approximately 9586 MMBOE, where the Original Gas in Place (OGIP) is about 54.77 TCF (9.420 MMBOE) and the Original Oil In Place (OOIP) is about 165.55 MMBOE). 2.1.2.3. Working Area As per 1 Januari 2015, Indonesia has 332 blocks (working areas) as seen in Figure 6. Compared to status of 1 January 2014 (225 blocks), the number of blocks increased by 6 blocks this year. These blocks consist of 196 exploration blocks, 79 production blocks, 54 blocks of CBM and 4 shale gas block. during year 2015 (Figure 7). The evaluation areas consist of 9 candidates of New Blocks including, Atsy (Asmat District), Boka (Mimika District), Tanah Merah Utara (BovenDigoel District), East Tanimbar (Tanimbar Island), Merauke (Merauke District), East Misool (Raja Ampat District), East Kai (South East Maluku District), Teluk Bone (East – North Luwuk District) and Tomini (Poso and Tojo Una-Una District). Five of the target areas are located offshore, and four of them are onshore (see Figure 8). CCOP Member Country Report: INDONESIA 5 Figure 7. Indonesia Unconventional Oil and Gas working area map as of March 2016 Figure 8. Recommendation of New Working Area by Geological Agency (2014) There is also an activity regarding data review of unsold Blocks conducted by the Research and Development Centre for Oil and Gas Technology “LEMIGAS” to improve data quality and understanding exploration concept within the blocks. The main goal of this activity is to reveal their accurate hydrocarbon prospects to find the possibility of re-offering the unsold Blocks to the investors. 2.1.2.4. CCS Programme. Currently, LEMIGAS has been successfully mapping potential geological formations for CO2 storage across the country along with their storage capacity. LEMIGAS has also identified large stationary CO2 sources in Indonesia. Another assessment was focused on CO2 management on low-rank coal utilization in South Sumatera and East Kalimantan. 6 CCOP Member Country Report: INDONESIA 2.1.3. Proposed Future Activities and Assistance Required from CCOP in Support of Future Activities • Exploration in the frontier areas that lack of data and infrastructure, especially in the off-shore and deep sea area which need knowledge sharing and technical assistance from the CCOP Networking. • Sharing best practice and lessons learnt from hydrocarbon exploration in cross border area. • Sharing best practices and lessons learn in developing unconventional hydrocarbon resources, such as shale hydrocarbon and coalbed methane (CBM). • Sharing best practices and lessons learnt from CCS projects in conjunction with Enhanced Oil Recovery (EOR) or Enhanced Gas Recovery (EGR). • Continuosly enhance collaboration to improve better understanding on CCS chains technologies. 2.2. Coal, Coalbed Methane and Shale Gas 2.2.1. Summary CBM development opportunities in Indonesia are becoming more promising. Investors will be encouraged by the Government to acquire
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