For Chemical Engineering Students Engineering Faculty - University of Indonesia Depok May 7, 2010

1. Babusiauz et all, Oil & Gas Exploration and Production. Reserve, costs, contracts, IFP-Technip, Centre for Economics and Management (IFP-School), “Oil and Gas Exploration and Production: Reserve, costs, contracts”, Institute Francais Du Petrole Publications, Paris Undang Undang Republik Indonesia No. 22 Tahun 2001 Tentang Minyak dan Gas Bumi. 4. Peraturan Pemerintah Republik Indonesia No. 42 Tahun 2002 Tentang Badan Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi. 5. Widjajono Partowidagdo, “Manajemen dan Ekonomi Minyak dan Gas Bumi”, Program Studi Pembangunan Program Pasca Sarjana ITB, Willem J H. Van Groenendaal, “The Economics Appraisal of Natural Gas Project”, Oxford University Press, Centre for Economics and Management (IFP-School), “Oil and Gas Exploration and Production: Reserve, costs, contracts”, Institute Francais Du Petrole Publications, Paris 2004.

 How to estimate pra-exploration cost (surveys, seismic acquisition, processing & interpretation)  How to estimate exploration cost (G&G study, hydrocarbon resources calculation, infrastructure and exploration drilling)  How to estimate value of hydrocarbon resources (G&G study, original hydrocarbon in place, oil/gas prices prospecting)  Field appraisal: role-law-regulation, uncertainty factors, tools & technology, cost & benefit, environment aspects, permit aspects.  How to estimate field development cost: G&G data & study, reservoir simulation study, development well planning, production facility & process, land & entering access acquisition & preparation, HSE study (AMDAL).  Market aspects & project economics (gas user, oil/gas price: current & prospect, project economics figure)

 Preliminary Survey costs (geographics data, satelite data, land & sea data, weather & climate data, access information, social & culture local society, country & local goverment regulation)  Deeply Survey costs (soil investigation, preseismic survey, gravimetry survey, location & road access survey, wave & water depth survey, etc)  Seismic acquisition & interpretation costs  Land & access acquisition & preparation  Exploration Drilling Cost (Rig & drilling crew, loging, mud & completion, general service within drilling, coring, well material, etc)  G&G Interpretation & Study Cost  Other Costs (permits, Community Development, Environment study, etc)

 Estimate IHIP (Initial Hydrocarbon In Place) by G&G Study, and define Hydrocarbon Reserve (Proven-P1, Probable-P2, Possible-P3)  Hydrocarbon Reserve Certification (GCA, DMN, Lemigas)  Define Hydrocarbon Recovery Factor (RF), Gas Deliverability and or Oil Production Projection  Current Hydrocarbon Price & Projection (usually predicted in 10 years)  Estimate value of hydrocarbon production for 10 years and make sensitivity of change of price  Estimate total value of hydrocarbon for 10 years or more suitable with the total predicted hydrocarbon production

 Reservoir Simulation Study costs (for determination development model, well coordinate, well depth, estimate productive zone interval, gas deliverability)  Drilling study cost (well drilling type, rig capacity, well cost estimate, drilling risk prediction)  Land & access acquisition and preparation  Development Drilling Cost (Rig & drilling crew, loging, mud & completion, general service within drilling, well material, etc)  Prod Facility Study Cost (Material Selection Study, Pre FEED, FEED, Topographic & Soil Investigation)  EPC for Prod Facility  Other Costs (permits, Corporate Social Responsibility - CSR, Environment study - AMDAL, etc)

 Gas / Oil Market Prospect Study cost (for projection of gas utilization, planning of crude oil delivery)  See & look for the blue print of local & cental goverment in development planning therefore we can get hydrocarbon demand in the short & long term period  Learn & investigate hydrocarbon price (current & future prospective), we can use credible consultant or world foundation projection (OPEC, world bank, IDB, World Energy Consult, etc)  Consider access & infrastructure condition from hydrocarbon source to supply point or utilization plant (road, sea port, air port, pipeline road plan, etc)

 Material Selection Study (to define the type & spec of material will be used in the facility)  Pre FEED (to define preliminary design for cost estimate) & FEED (detail design for EPC requirements)  Topographic & Soil Investigation (to define sizing of land use and preparation, cost of land)  Engineering (generally conducted by Eng Comp to make input for Procurement and Construction req)  Procurement usually doing by tender  Construction usually conducted by Construction Com  Permit cost, Corporate Social Responsibility (CSR) cost, Environment study - AMDAL, etc)

Gross Revenue (R) Indonesia Share (1-SH/(1-T))*ES Equity To be split, ES Recoverable Cost (Rec) Investment Credit Cost Recovery FTP=5% INDONESIA TAKE Diff Price DMO DDMO= 0 Tax = 40.5% Taxable Income Net Contr. share Contractor Share (SH/(1-T))*ES TOTAL CONTRACTOR SHARE CONTRACTOR CASH FLOW Expenditure

 DMO (Domestic Market Obligation) Operator mempunyai kewajiban menjual minyak dan gas di pasar dalam negeri sebesar 25% dengan harga (Fee) sebesar Realized Net Price FOB.  Abandonment Cost Biaya yang dianggarkan untuk membiayai kegiatan pembongkaran fasilitas yang telah dibangun dan pengembanlian pada fungsi lahan ke keadaan semula sesuai lingkungan yang baik dan memenuhi aspek lingkungan. Biaya ini biasanya dianggarkan setiap tahun di keuangan BPMIGAS.

 Lihat di foto kopi Keekonomian Pemboran Sumur MTD-BB