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Preliminary Risk Valuation in Indonesia Coal Bed Methane Project (Case: Pertamina Cbm Project)

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PRELIMINARY RISK VALUATION IN INDONESIA COAL BED METHANE PROJECT (Case: PERTAMINA CBM Project)

DEWI GENTANA & DEDI YUSMEN PERTAMINA CBM TEAM

Gas Asia Conferences, Kualalumpur 17-18 March 2009

OUTLINE
A. RISK VALUATION APPROACH & METHODOLOGY B . SUB SURFACE, SURFACE, ECONOMICS

C . RISK VALUATION RESULT AND ANALYSIS

D. CONCLUSION

Gas Asia Conferences, Kualalumpur 17-18 March 2009

1

OVERVIEW
Overlapping Oil and Gas Working Area with Coal Mining Consession Area

CBM (0-1000 M)

OIL AND GAS >

1000 M

Casing 9-5/8” caused by Coal Mining activity at UBEP Tanjung Field

Bursting Production Pipe caused by tractors at UBEP Tanjung Field

Gas Asia Conferences, Kualalumpur 17-18 March 2009

2

OUTLINE

A. RISK VALUATION APPROACH & METHODOLOGY

Gas Asia Conferences, Kualalumpur 17-18 March 2009

3

PERTAMINA CBM RISK VALUATION MODEL (Simple Model)
COUNTRY & INDUSTRY ENV. •Country Risk •Economy • •Environment •General Issue •Petroleum Legislation •Energy Balance •Competitors •Activity PROJECT ECONOMICS •Economic Indicators •Commercial Types •Taxes •Fiscal Terms

SURFACE AREA (25%)

PRODUCTION FACILITY BUSINESS ENVIRONMENT ECONOMIC INDICATOR LAND ACCESS

PROJECT ECONOMICS (25%)

TECHNICAL/SUBSURFACE
GEOTECHNICAL •Data •Basin •Reserves •Play Type •Petroleum Systems •Technical Feasibility
POTENTIAL RESERVE

(50%)

Pertamina CBM Team, 2007. (Modified From De’Ath)

Gas Asia Conferences, Kualalumpur 17-18 March 2009

4

Risk Factors Considered
Subsurface
• • • No producing C B M fields in Indones ia No model available for res ervoir s imulation - s till in s tudy phas e R es erves not proven

• Surface • • • • • Project • • • •

Licens ing for acreag e overlaps with Mineral and Oil & G as C onces s ions S ubject to both local and central g overnment reg ulations Land acces s , environmental impact and

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