Deep-water and going deeper is the future's

oil & gas Indonesia

The challenges and opportunity for younger generation how
to optimize the oil & gas industry for economic national

Gunawan Muktiwibowo
Original picture courtesy by DNV GL Subject Matter Expert for Subsea, Well Severance & Platform Decommissioning
Quote
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https://www.cnbcindonesia.com/news/20190802120857-4-
89367/maaf-energi-baru-ri-masih-andalkan-energi-fosil-sampai-2050

Gunawan Muktiwibowo
Subject Matter Expert for Subsea, Well Severance & Platform Decommissioning
Background

(UN said more than 300 million,

BPS projections that the population
in 2020 will be 270 million
2050? BPS projection in 2045 will be 318 million)

Gunawan Muktiwibowo
Subject Matter Expert for Subsea, Well Severance & Platform Decommissioning
Solution?

GOVERNMENT POLICY
Import

Renewables
Empowering NOC
Discovery new reserve

EOR

Refinery

Supply Chain
PUBLIC EDUCATION
Biofuel Pricing

Gunawan Muktiwibowo
Subject Matter Expert for Subsea, Well Severance & Platform Decommissioning
Sustainability vs. Short Term

Import Fuel: Short Term,

Bankable, Low Risk, Gain Margin,
Fast Capital Return, Paper Work

If you have IDR

288 Trillion?
Upstream Growth
Downstream Growth
Business Support Growth
Community Growth
Economy Growth

High Investment, High Risk,

Win/Lost, Long Return
Investment
Gunawan Muktiwibowo
Subject Matter Expert for Subsea, Well Severance & Platform Decommissioning
Going to deep and deeper

Gunawan Muktiwibowo
Subject Matter Expert for Subsea, Well Severance & Platform Decommissioning
Fact and Trend
• More towards the offshore and deep-water
• More remote area, even to the Exclusive Economic
Zone (ZEE)
Trend to use subsea
• Marginal Well production system

• Most gas findings

• Development of unconventional hydrocarbons
(coal methane gas and shale gas)
• Enhance Oil Recovery (EOR) for mature well
• Upstream activities increasingly lead to eastern
Indonesia

Gunawan Muktiwibowo
Subject Matter Expert for Subsea, Well Severance & Platform Decommissioning
 Why offshore and going deeper?

Quote “Ke depan akan berubah paradigma dari lapangan

onshore yang berumur tua, ke daerah lepas pantai dan laut
dalam meskipun yang onshore ternyata masih punya
potensi” 1)
• Indonesia, 70% is sea  Proven Oil & Gas reserve, estimate USD 14,5 billion 2) 
How much total potential indicate Oil reserve?  Estimate potentially 7,5 billion
barrel from un-explored oil and gas basins of 128 basins 3) and still 5% explored
(produced) from total gas reserve (until 2018) about 135,55 trillion cubic feet 4)
• Economical snow ball impact & connected between islands (remote and outside
islands) to growth and develop  The Sea As Adhesives And Unifying State
Sovereignty 5)

1) Dwi Sutjipto dalam acara sarasehan migas nasional, di Kantor SKK Migas, Kamis (10/10/2019)
2) Based on LIPI research, published on 22 April 2019
3) Ditto no. 1
4) Direktur Jenderal Minyak dan Gas Bumi Kementerian Energi dan Sumber Daya Mineral (ESDM) Djoko Siswanto di Jakarta, 5/3/2019 Gunawan Muktiwibowo
5) Declaration of Ir. Djoeanda – Archipelago state Subject Matter Expert for Subsea, Well Severance & Platform Decommissioning
Challenges and Risk as an Opportunity as well as Solution!
• Upstream
Attractive investment  Gross Split?
Exploring offshore and deep-water  Technology, Capital and Risk?
Utilize marginal well  Is it economically?
Subsea production system implementation  Expensive?
• Mid and Downstream
Production facility  onshore/offshore?
Refinery  Upgrading/New Built?
Supply chain  efficiency?

Empowering local content  Question: Do we have:

Sophisticated local submersible drilling?
Local producer and manufacture drilling tools?
Local producer, manufacturer, assembler for subsea wellhead, subsea tree, subsea
control?
Local seamless pipe?
Local steel maker for high grade steel?
Gunawan Muktiwibowo
Subject Matter Expert for Subsea, Well Severance & Platform Decommissioning
Discuss further  Younger Generation take the lead!

• Advantage oil and gas going offshore and deep water (more specific using Subsea):
• Friendly environment  everything on seabed
• Low risk of land and community disputes  no one claim of sea and seabed
• Almost maintenance-less  small and rare intervention/work-over
• Unmanned operation on site  HSE concern
• Faster lead time on built, construction, installation and commissioning  Faster on-stream target
(Production)
• Easy to plug & abandon, cut & remove  Cheap and Faster decommissioning
• The most advantage is suitable for marginal well

• Disadvantage:
• High risk investment
• (some people said) more expensive  debatable, see overall cost for construction offshore
platform vs. subsea
• More expensive for intervention
• Applying high and update technology  limited player/supplier

Gunawan Muktiwibowo
Subject Matter Expert for Subsea, Well Severance & Platform Decommissioning
GUNAWAN MUKTIWIBOWO
Subject Matter Expert on:
- Subsea and Deep-water Drilling
- Well Severance & Platform
Decommissioning

+628111694477
gunawan@raharjomuktiwibowo.com
Gunawan Muktiwibowo
Subject Matter Expert for Subsea, Well Severance & Platform Decommissioning