Please direct all responses/queries to: Woodside Energy Ltd.

Dave Tapley ACN 005 482 986

T: +61 8 9348 4065
E: Dave.Tapley@woodside.com.au Mia Yellagonga
11 Mount Street
Our reference: DRIMS 1401162126
Perth WA 6000
Australia
T +61 8 9348 4000
21 June 2019
F +61 8 9214 2777
www.woodside.com.au

Bapak Eko Nurcahyanto

PT. Surveyor Indonesia (Persero)
Cabang Surabaya

(Transmitted via email)

Dear Sir,

QUOTATION FOR EAST AND CENTRAL JAVA ENERGY MARKET STUDY

Background and purpose

Woodside is seeking a consultant to commission a study to assess the energy and gas markets in and
around the Indonesian provinces of East and Central Java.

The study will assist Woodside assess the potential to invest in regasification infrastructure in the two
provinces.

Scope of Work
The study is to provide details specific for the provinces of East and Central Java on;
• The energy use and latent demand of gas users broken down by sector,
• Domestic gas supply forecast and any regas terminals proposed for this region.
• Gas prices payable by each sector and the affordable energy price of each sector,
• Existing and proposed gas pipelines capacity and tariffs payable if such pipelines are open access,
any restrictions to access by third parties and,
• Based on the above analysis of the local energy market and potential risks and threats, the study
should outline the recommended most significant potential clients that Woodside could target for gas
offtake contracts in the region to underpin a LNG regas terminal investment.

Further details on the work scope is provided below.

1. Gas/LNG Demand
The study is to analyse and outline the current and future gas demand (including the potential for fuel
switching to gas –diesel, LPG) up to at least 2030 and broken down into low, mid, and high forecast
scenarios in East and Central Java, broken down by significant sector type, for example;
• Power generation,
• Oil refining,
• Petrochemical/refining
• Manufacturing,
• Industrial,
• Retail/hospitality (including business centres, shopping centres, hotels)
• Trucked LNG as separate market,
• Mining,
• Transport,
• Marine bunkering, and
• City gas
The report should outline the gas procurement strategies for each sector and provide details of long or short-
term contracts where possible, including the ability (probability, volume and price margins) to sell gas on the
local market as spot or on short term contract at a premium to international markets.

It is not expected that the consultant should perform any primary surveys for the gas demand assessment.

2. Gas supply forecast, including proposed regas terminals

The study should comment on the following potential future gas supply:
• Forecast of production from existing fields and documentation of regulated gas prices,
• Additional undeveloped domestic gas production from the region and expected gas price by field,
and
• Possible growth in renewable energy.

The study should also provide publicly available details on the proposed LNG regas terminals in East and
Central Java, (for example PGN/Pertagas) including information on the following:
• Proposed terminal capacity,
• Developers,
• Estimated development cost,
• Gas offtake agreements, and
• Project status

3. Gas prices and end user affordability

The study is to outline the range of prices payable by sector for various relevant forms of energy competitive
with gas, prices paid by existing gas users, and end user ability to pay imported LNG prices, for example:
• LNG for diesel replacement,
• LNG for LPG replacement,
• Existing or planned LNG pricing
• Gas for power use,
• Gas for feedstock use,
• Gas for city-gas distribution,
• Gas for transport use (CNG), and
• Electricity from the grid.

4. Gas supply infrastructure

The study is to outline the existing and proposed gas pipelines in the region and include the following details:
• Capacity of each pipeline,
• Tariff structure for open access pipelines available ullage,
• Status of pipelines either in construction or proposed, and their projected completion dates, and
• Plans and status of any small-scale gas liquification and LNG distribution projects.

5. Regulatory/Policy initiatives
The study should also briefly comment on the relevant Government policies and initiatives, focussing on any
recent or anticipated updates, for example:
• Subsidies and regulations that are applicable to specific industries, such as transport fuels and
power generation,
• Policies regarding access to pipelines,
• Indonesian LNG import regulations and restrictions, and
• Initiatives to promote gas use in the region including initiative for coal conversion to Gas in view of
greenhouse/emission reduction

6. Conclusions and Recommendations

Based on the above analysis the study should recommend all significant potential gas offtake clients in the
region that could be supplied with gas or LNG from a regas terminal located in East Java. The
recommendations must be justified considering the analysis undertaken in the study and include sensitivity
analysis for pricing to provide insight into market demand. The consultant should also recommend
approaches for marketing and distribution of gas i.e. direct sales to consumer, via an existing or new gas
aggregator.

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The Consultant
The consultant should have in-depth knowledge of the gas and power sector; market players; and regulatory
landscape for gas and power. Ideally, the consultant will have completed similar studies in the past in the
Indonesia and a have a track record of assessing gas and power market opportunities and advising
international oil & gas companies.

The Proposal
Woodside is seeking to receive a consulting services proposal to deliver these services. The consulting
services proposal should include key terms and conditions, including the proposed fee charges and relevant
breakdown of work and the proposed timing of key deliverables. The work scope is to be broken in phases or
include interim reports to demonstrate progress. The proposal should also outline how the Consultant
intends to approach the analysis.

A final study report should be delivered within six weeks of the contract execution, and not more than eight
weeks.

Woodside’s Terms of Contracting for this work are found on the following website:
https://www.woodside.com.au/suppliers/existing-suppliers

A copy of the CVs of each of the key consultants that are to undertake the study together with a description
of past examples of consultation services, either with similar scopes of work or in the same field, and which
provide a reasonable indication of the consultant’s experience and capabilities relevant for Indonesia should
also be included with the proposal.

Please feel free to contact the undersigned at any time if clarification of any aspect of the proposal is
required.

Yours sincerely

David Tapley
Opportunity Manager

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