Indonesian oil and gas

Technical Report · Mon Oct 01 04:00:00 EDT 1984

OSTI ID:6191176

Mlotok, P

Indonesia is the major oil-producing nation in the Far East and is the only member of OPEC from that region. Private oil companies participate in the oil industry there as contractors with responsibility for exploration and production operations. Indonesia has been politically stable since the mid-1960s, and economic progress, based largely on oil revenues, has been impressive. While the recent decline in oil revenues has caused difficulties, fiscal adjustments have been made to prevent serious disruptions. Although Indonesia's foreign debt of $25 billion is large, the country has not yet had any problem servicing this debt. The country's current oil-producing capacity is 1.6 million barrels per day (mmb/d) and its gas-producing capacity is 3.0 trillion cubic feet per day (tcf/d). All gas exports move as Liquefied Natural Gas. Indonesia's OPEC oil quota is 1.3 mmb/d; it also produces 0.1 mmb/d of condensates. Nearly all of the oil and gas operations are managed by foreign companies under production-sharing contracts (PSC), which allow the contractor a profit equal to about 15% of after-cost revenues on oil and 35% on gas. We estimate current profits to be in the range of $3 to $4 per barrel on oil and $1.25 per thousand cubic feet (mcf) on gas. The PSC also allows recovery of exploration expenses from first production, so capital exposure is reduced and return on capital is generally attractive. Among the international oil companies, the major players in Indonesia are Chevron and Texaco (through their jointly owned Caltex subsidiary), and Mobil Oil (through wholly owned Mobil Oil Indonesia). The Indonesian political environment is currently stable and we do not expect any major changes in the terms of existing operations. Longer term, we would not be surprised to see Indonesia take a larger role in exploration and production through its national oil company, Pertamina, or through Indonesian-owned private companies. 4 figures.

• Research Organization: Salomon Bros., Inc., New York (USA)
• OSTI ID: 6191176
• Report Number(s): NP-5900363; ON: TI85900363
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700 -- Petroleum-- Economics
Industrial
& Business Aspects
03 NATURAL GAS
030600 -- Natural Gas-- Economic
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
294002* -- Energy Planning & Policy-- Petroleum
294003 -- Energy Planning & Policy-- Natural Gas
ASIA
CAPITALIZED COST
CONTRACTS
COST
DEVELOPING COUNTRIES
ECONOMIC ANALYSIS
ECONOMICS
ENERGY POLICY
ENERGY SOURCES
EXPLORATION
EXPORTS
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
GOVERNMENT POLICIES
INCOME
INDONESIA
INDUSTRY
ISLANDS
LIQUEFIED GASES
LIQUEFIED NATURAL GAS
NATURAL GAS
OPERATING COST
PETROLEUM
PETROLEUM INDUSTRY
PRICES
PRODUCTION
RESERVES
RESOURCES