| Key Facts |
Employees: 1,467
Total Average Daily Production in 2006: 65 MBOE
- Oil: 12 MBD
- Gas: 319 MMCFD
- NGL: --
Crude Processing Capacity: --
Major Office Locations: Jakarta |
Exploration and Production ConocoPhillips has had a presence in Indonesia for more than 40 years, and its assets are concentrated in two core areas: the South Natuna Sea and onshore South Sumatra. ConocoPhillips is one of the largest foreign leaseholders in Indonesia with 11 exploration and production licenses comprising roughly 14.5 million gross acres. The company operates nine Production Sharing Contracts (PSCs), four are offshore: South Natuna Sea Block B, Ketapang, Amborip VI and Kuma. The remaining five PSCs are onshore: Corridor TAC (technical assistance contract), Corridor PSC, South Jambi ‘B,’ Sakakemang JOB (jointly operated) in South Sumatra and Warim PSC in Papua. ConocoPhillips holds nonoperator interests in the Pangkah PSC offshore East Java and the Banyumas PSC onshore Java. During 2006/2007, the company sold its interests in the Block A PSCs in North Sumatra and was awarded the Amborip VI PSC in the Arafura Sea and Kuma Block in Makassar Straits.
The Natuna Sea Block B PSC was awarded in 1968, with an original acreage of 39,700 square miles, and first production came on line in 1979. A license extension was granted in 1998 and is scheduled to expire in 2028. The block is located in 300 feet of water. The block has one producing mature oil field and 16 gas fields in various phases of development (seven of which have recoverable oil or condensate volumes). In late 2004, oil production began from the Belanak oil and gas field through a new floating production, storage and offloading vessel (FPSO) and related facilities. In October 2005, natural gas sales began from the Belanak field. An LPG FSO successfully started operations in April 2007 and has started receiving LPG from the FPSO. LPG will be captured from the Belanak, Hiu, Kerisi and North Belut fields within Block B. Elsewhere in Block B, the Hiu field successfully delivered first gas in December 2006. It is expected that first production from the Kerisi field will occur in December 2007. Development of North Belut currently is under way with first production scheduled in August 2009. Natural gas from Block B is sold via two long-term contracts. In the first contract, ConocoPhillips is a participant in the West Natuna Gas Supply Group (WNG). WNG jointly markets natural gas from fields in three South Natuna Sea PSCs, including Block B, to SembGas in Singapore. The second contract is solely supplied with natural gas from Block B and provides deliveries to Petronas in Malaysia.
ConocoPhillips is operator of the Corridor Block PSC, located in South Sumatra, which was awarded in 1983. The remaining contract area covers 872 square miles. ConocoPhillips operates six oil fields and six natural gas fields. The principal oil producing fields are Puyuh, Supat and Rawa. The principal natural gas fields are Suban, Sumpal, Dayung and the Gelam unit. ConocoPhillips supplies natural gas from the Grissik and Suban processing plants to the Duri steamflood in central Sumatra and to markets in Singapore and Batam.
In August 2004, the company signed a sales agreement with PT Perusahaan Gas Negara (Persero) Tbk. (PGN), the Indonesian stateowned transportation company, to supply natural gas for delivery to industrial markets in West Java and Jakarta. Under the agreement, ConocoPhillips expects to supply approximately 850 BCF net of natural gas over a 17-year period beginning in 2007. Initial deliveries are expected to be about 65 MMCFD, ramping up to approximately 150 MMCFD in 2012 and continuing at that level until the contract terminates in 2023.
Following the execution of the West Java natural gas sales agreement with PGN in 2004, ConocoPhillips began development of the Suban Phase II project, which is an expansion of the existing Suban processing plant and associated pipelines in the Corridor PSC. The Suban Phase II processing plant successfully received first natural gas delivery in December 2006. The Corridor PSC expires in 2023.
ConocoPhillips also is operator of the Corridor TAC, located in South Sumatra, and originally awarded in 1968. The remaining contract area (after acreage relinquishment) covers 186 square miles. The principal oil producing fields are Ramba and Bentayan. Production is delivered to the Pertamina refinery located at Palembang. The Corridor TAC expires in 2010. ConocoPhillips plans to divest its interest during 2007.
ConocoPhillips has an interest in the South Jambi ‘B’ PSC, located in South Sumatra, and awarded in 1990. The remaining contract area (after acreage relinquishment) covers 594 square miles. Natural gas production from the Teluk Rendah and Geger Kalong fields commenced in June 2004 and July 2005, respectively, to supply the Gas Supply Pte. Ltd. (GSPL) contract, enabling natural gas deliveries to Singapore. The South Jambi ‘B’ PSC expires in 2020.
The company also has an interest in Pangkah PSC, acquired in 1996, and located offshore East Java. The development of the Ujung Pangkah field was approved by the Indonesian government in late 2004, following the signing of contracts for the supply of natural gas to markets in East Java. First gas is anticipated in 2007. In October 2005, ConocoPhillips purchased an additional 3 percent interest in the PSC, increasing the company’s ownership from 22 percent to 25 percent. A project that may include developing the oil rim of the field and installing a liquefied petroleum gas recovery facility currently is being evaluated. ConocoPhillips plans to divest its interest during 2007.
ConocoPhillips participates in nine long-term natural gas pipeline contracts. In addition, the company expects to begin supplying natural gas to markets in West Java in 2007.
Indonesia Facilities
Through its 35 percent interest in TransAsia Pipeline Company Pvt. Ltd., ConocoPhillips holds an indirect 14 percent interest in Indonesia’s largest gas transmission pipeline company, PT Transportasi Gas Indonesia. The company owns and operates 621 miles of onshore and offshore natural gas pipelines that deliver ConocoPhillips’ South Sumatra natural gas to market, including the Grissik-to-Duri and Grissik-to-Singapore pipelines.
Find out more at …
Developing a Local Work Force in Indonesia (63KB .PDF Document)
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