Natural Gas Business in Indonesia

1724 words 7 pages
3Natural Gas Business in Indonesia

Introduction

Gas is an energy future of Indonesia. It is a fact that cannot be denied anymore. Based on existing data, throughout 2010 there were new discoveries of gas reserves are significant enough to achieve 2.09 trillion cubic feet, while the discovery of oil only amounted to 140 million barrels only. On January 1, 2011, proved reserves position and potential of gas in Indonesia reached 153.72 trillion cubic feet of proven and potential reserves and crude oil for 7.41 billion Barrels. (BPMIGAS Bulletin Issue, 2011)

If the reserves are produced with current production levels then the Indonesia's oil reserves will run out for 12 years, while Indonesia's natural gas reserves are still able to survive
…show more content…
Increased production of oil and gas
2. Fertilizer Industry
3. Electricity Supply
4. Local Region Government Evaluation
Not Approve
Approval Procedures
Evaluation & Approval from IP
Evaluation of Purpose & Proposal
OK
Purpose & Proposal
Direct Appointment
Purpose and Proposal Direct Appointment Revision procedures for other buyers selection

Approval of Purpose & Proposal
Direct Appointment Preparation and discussion of SAA
MoU, MoA, HoA, GSA Approval
Application for Price Approval to Minister
Approval and SAA Signed
MoU, MoA, HoA, GSA Preparation
MoU, MoA, HoA, GSA Signed
Direct Appointment Buyer
BPMIGAS
KKKS
BUYER
BPMIGAS
KKKS
BUYER
1
2
3
4
5
6
7
8
9
10
11
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15
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Figure 6. BPMIGAS Natural Gas Direct Appointment Procedure (PTK No. 029/PTK/VII/2009)
Guidelines for Working Procedure No. 029/PTK/VII/2009 BPMIGAS are reinforced by the issuance of Ministerial Regulation No. 3 of 2010 regarding the allocation and utilization of natural gas to meet domestic needs. Determination of Allocation Policies and Utilization of Natural Gas Utilization implemented with priority for Natural Gas (Peraturan Menteri ESDM No 3, 2010):
a. increased production of the National Oil and Gas;
b. fertilizer industry;
c. electricity supply;
d. other industries.

In the period after the issuance of Working Procedure No. 029/PTK/VII/2009 BPMIGAS, many

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