ENERGY NEWS

Indonesian 2001 Petroleum Statistics

SUMMARY

Petroleum supply and demand trends in 2001 continued to move Indonesia toward eventual net importer status, although its net exports still average 330,000 barrels of crude oil and condensate per day. Crude and condensate production in 2001 dropping 5.2 percent, while domestic demand for petroleum fuel products rose 2.9 percent according to preliminary figures. Natural gas production also declined 3.2 percent in 2001, but Pertamina predicts that it will rebound in 2003 to supply domestic and export demand. LNG export receipts dropped 21 percent to US $5.4 billion due primarily to the four-month suspension of ExxonMobil's natural gas production from its onshore fields and the subsequent shutdown of the Arun LNG plant. End summary.

Crude oil production dropped

Indonesia crude and condensate production declined in 2001 to an average of 1.341 million barrels per day (b/d). The total, comprising 1.209 million b/d of crude and 131,900 b/d of condensate, represented a 5.2 percent drop from the 2000 level of 1.414 million b/d. Most major producers (Caltex, BP, Exxon/Mobil, Vico, Gulf Resources and Pertamina) saw a decline in production. Increases of production from Exspan, Devon Energy and Total Indonesie mitigated the reduced output, however. Since Indonesia requires about 1.1 million b/d to meet domestic requirements, Indonesia was still able to export about 330,000 b/d of crude and condensate.

In February 2002, crude oil production rose slightly to 1.13 million b/d from 1.10 million b/d in January and condensate production also rose to 144,000 B/d. The Energy Ministry's Directorate General for Oil and Gas (MIGAS) attributed the increase to an OPEC quota, at 1.125 million b/d excluding condensate, that is higher than current production. Production will have to increase further, however, to reach 2002 budget revenues based on crude oil production of 1.32 million b/d and an oil price of $22 per barrel.

Caltex Pacific Indonesia, which accounted for 48 percent of the country's crude oil production in 2001, produced 643,000 b/d in 2001, compared to 706,000 b/d in 2000. The company blamed security disruptions, citing a series of disputes with local administrators and workers, for the lower production. The company estimated revenue losses of around $400 million in 2001. Caltex has targeted 610,000 b/d of crude oil production for 2002.

Indonesian Crude and Condensate Production by Company
(1,000 Barrels/Day)

Source: MIGAS

Natural gas production declined

Indonesia's natural gas production declined 3.2 percent in 2001 to 2.8 trillion standard cubic feet (TCF), or 7.7 BCF per day. This was the energy equivalent of 1.33 million barrels of oil per day (b/d), or slightly less than the country's 2001 crude production daily average. Pertamina predicts that natural gas production will exceed 3.2 TCF by 2003 in response to the increasing demand for gas for export and domestic use. In 2001, over 89 percent of natural gas production originated from seven major producers: Total (31.4 percent), Vico (16.5 percent), BP (10.5 percent), Pertamina (9.9 percent), ExxonMobil (9.6 percent), Gulf Resources (5.8 percent) and Unocal (5.7 percent).

Several companies significantly increased gas output:

• TotalFinaElf, Indonesia's largest gas producer in Indonesia, increased gas production by 4.6 percent in 2001 and brought new gas fields (Peciko and Tunu) onstream to supply mainly LNG and fertilizer plants.
• Conoco, Gulf Resources and Amoseas increased gas output in the western part of the Natuna Sea by 97.8 percent, 7.8 percent and 132 percent, respectively.
• Devon Energy increased gas production by 46 percent mainly from Jabung field in South Sumatra.
• Vico increased gas production from the Badak field in East Kalimantan by 2.6 percent to 464 BCF. Vico is a principal supplier of gas to the LNG, LPG and fertilizer plants at Bontang, East Kalimantan.
• Exspan increased natural gas production by 81 percent to a total of 41 BCF from 23 BCF in 2000. The company made production improvement from its Rimau block in South Sumatra.

On the negative side, ExxonMobil and Caltex experienced production declines.

• ExxonMobil's gas production from its giant but maturing Arun gas field in North Sumatra declined 41.6 percent to only 268 BCF due to security disruptions. The Arun LNG plant, two nearby fertilizer plants, and a pulp and paper factory use Arun's natural gas.
• Caltex's gas production dropped by 13 percent to 50 BCF from 58 BCF in 2000 in tandem with drops in its crude and condensate production.

Natural Gas Production By Major Producers
(Million SCF)

Source: MIGAS

LNG Exports Declined in 2001

Indonesia's LNG exports decreased 11.5 percent in 2001 to 1.239 trillion BTU (23.9 million MT), with earnings declined by 21 percent to US $5.4 billion from US $6.8 million in 2000. The decline reflects low LNG production from Arun LNG plant when ExxonMobil suspended operations at all three onshore gas fields in Aceh -- Arun, South Lhoksukon and Pase -- in mid-March 2001 due to security concerns in the strife-torn province. The Bontang LNG plant, which now has a capacity to produce 21.64 million MT/year of LNG from eight trains, increased LNG exports by 4.5 percent to 21.1 million MT in 2001. Exports to the leading destinations (Japan and Korea) declined 6.7 percent and 33 percent to 871 million BTU and 212 million BTU respectively. Pertamina is seeking to increase LNG exports to South Korea as its privatization process presents additional marketing opportunities.

LNG by Destination and Volume 
(both in 1000 BTU) and Value 

(Source: MIGAS)

Fuel Demand Rose in 2001, Dropped in 1st Qtr 2002

MIGAS preliminary figures indicated that domestic demand for oil products rose 2.9 percent in 2001 to 56.3 million kiloliters (KL), up from 54.8 million KL in 2000 due mainly to higher demand from the transportation and industrial sectors. The majority of the domestic consumption is accounted for by transportation (47 percent), industry (22 percent) and household (22 percent). The transportation sector, which uses largely premium gasoline and automotive diesel oil (ADO) consumed 26.4 million KL, or 3.4 percent higher than the 2000 level of 25.5 million KL. The industrial sector consumed a total 12.6 million KL (mainly ADO and fuel oil) in 2001 compared to 11.9 million KL in 2000. Households, the largest consumers of kerosene, required 12.2 million KL in 2001 against 12.4 million KL in 2000.

MIGAS reports, however, that fuel consumption during the first quarter of 2002 declined as a result of floods, low demand from the industrial sector and reducing smuggling for gasoline and diesel oil due to the January 17 fuel price hikes. Domestic sales for gasoline and diesel oil in several major cities including Jakarta were low in the first quarter. Pertamina anticipates higher demand in April and plans to import fuel products in May. Fuel oil production from domestic refineries remained stable at average of 31 to 32 thousand bbl a month. According to Pertamina, the company will not enter into a Crude Processing Deal (CPD) with Shell-Singapore as has been rumored since the fuel products stockpile, at 25 days, are sufficient. Pertamina will consider a CPD if stocks drop to an emergency level.

In January, the government set the prices of fuel products for industry at 75 percent of the Mid Oil Platt's Singapore (MOPS), higher than the previous 50 percent of MOPS. In March, prices were set at Rp 1,120 per liter for industrial diesel from Rp 1,110 per liter for the previous month; fuel oil to Rp 950 from Rp 925; and kerosene for industry to Rp 1,270 from Rp 1,230. For April, Pertamina raised fuel product prices between 3.2% and 11% due to rising oil prices. The price of premium fuel was set at Rp 1,600 a liter, automotive diesel at Rp 1,250,and industrial diesel oil at Rp 1,240. The price of kerosene for low-income households remained at its subsidized price of Rp 600 per liter. The price of diesel fuel used by mining, oil and gas companies increased by 11% to Rp 1,670. The prices are valid until April 30.

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