About Indonesia
• Population: 248 million
• An archipelago over three time-zones with 17 500 islands
• Declared independence after the II World War. Netherlands agreed transfer of sovereignty in 1949
• First fair and free elections in 1999
• Drilling for oil began in 1870
• Oil production has declined in recent years, as older fields decline and new projects fail to replace them.
• Indonesia is no longer self supplied with oil
• Natural gas production has increased by more than a quarter since 2005.
• Indonesia was the world’s largest LNG exporter until
• Large geothermal resources that will increasingly be used for power production
Oil
Indonesia's crude oil production has been declining since 1998, due to the maturation of the country's largest oil fields. Indonesia was a member of the OPEC from 1962 to 2009. Indonesia was the first country in the world to introduce production sharing contracts to replace the concessions system. Oil companies became contractors whilst the country retained ownership to the resources.
The petroleum sector has been reformed. A new regulatory body has been introduced whilst the national oil company, Pertamina, has become more commercially oriented. Pertamina operates most of the refining capacity in Indonesia. Discoveries in the deep waters have opened new perspectives for future developments.
Oil overview 2010
• Proven oil reserves: 4,2 billion barrels
• Oil production: 0,99 million barrels per day
• Oil consumption: 1.3 million barrels per day
Major oil producers
• Chevron is the country’s largest producer
• ExxonMobil
• BP
• Shell
• Total
• ConocoPhillips
Natural Gas
Gas production has grown at an average annual rate of about 1.5 percent over the previous two decades. 70 percent of the country's conventional gas reserves may be located offshore. Indonesia's geography presents a challenge to resource development, because the archipelago nation's most prolific blocks of conventional gas reserves are located far from the major domestic markets. Indonesia is therefore building several terminals to receive LNG as well as developing several new LNG export facilities.
The most significant fields for current natural gas production are:
• Chevron as operator for the Gendalo-Gehem project in deep waters
• Inpex from Japan is developing the deep water Masela block
• The Natuna D-Alpha field in the East Natuna Sea is a huge gas field with a very high content of CO2. ExxonMobil discovered the field which has proved to be a major technological and commercial challenge. Pertamina has become operator
Indonesian gas production initially was geared towards exports, but the country's declining oil production has driven an effort to shift increasing volumes toward domestic consumption. The government is giving priority to use more gas in the domestic economy for petrochemicals and power production.
The gas industry
• Proven natural gas reserves: 2,4 trillion cubic meters
• Natural gas production: 82 billion cubic meters
• Natural gas consumption: 94,5 billion cubic meters
Main Markets
Other Priority Markets
