DEPARTMENT OF ENERGY AND MINERAL RESOURCES DIRECTORATE GENERAL

DEPARTMENT OF ENERGY AND MINERAL RESOURCES DIRECTORATE GENERAL OF OIL AND GAS NATURAL GAS VEHICLE INFRASTRUCTURE & UTILIZATION IN THE REPUBLIC OF INDONESIA Ir. Suyartono, M. Sc. Director of Oil and Gas Engineering and Environmental Affair 3 rd Presented at KOREA – ASEAN NGV (NATURALGAS VEHICLE) FORUM Jakarta - May 28, 2009

280509 DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI ROLE OF OIL AND GAS INDUSTRIES Multiplier Effects Domestic Fuels Feed stocks Source of State Revenue Sustainable Development PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) HUMAN RESOURCES HIGH RISK CAP. INTENS. HIGH TECH OIL AND GAS INDUSTRIES © DJ MIGAS 2009

280509 DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI OIL AND GAS POLICY AND REGULATION MACRO (Policy and Regulation) : • Policy Maker MINISTER OF ENERGY AND MINERAL RESOURCES (Policy Maker in Oil and Gas Sector) • Regulator Ø Technical Aspect Minister of EMR cq. Directorate General of Oil and Gas (Regulator of Safety and Supporting Business in Oil and Gas Industry) Minister EMR Ø Business Aspect Directorate General of Oil and Gas cq. (Regulator of Upstream Oil and Gas Industry) Minister EMR cq. Directorate General of Oil and Gas (Regulator of Non Fossil Fuels and Non Pipe Gas) Regulation MICRO (Business Player) • Core Business Implementing Body Upstream Business Entity Regulation Trading Storage Transportation Permanent Establishment PSC Regulatory Body (Regulator of Fuels*) and Pipe Gas) Trading Storage Transportation Downstream Gas Pipeline Business Entity Downstream Business Entity Upstream Downstream OIL AND GAS SUPPORTING SERVICE BUSINESS • Supporting Business OIL AND GAS SUPPORTING BUSINESS ENTITY (-HILIR MIGAS BADAN USAHA PENUNJANG HULU UPSTREAM-DOWNSTREAM) Supporting Service Business Entity Construction Services Law No. 18/1999) (Jasa Konstruksi UU 18 of 1999 Engineering Procurement Comisioning Supporting Industri Penunjang Industry Non Construction Services (Jasa Non-Konstruksi ) Consultation Services Integrated Services *) Regulated by Government PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) Services G&G Drilling Services Research Services Jasa Diklat Technical Inspection Services Other Services Equipment Fabrication End User Fabrication PSC (Production Sharing Contract ) © DJ MIGAS 2009

280509 DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI REGULATION CONTEXT RELATED TO NGV UTILIZATION • Law of The Republic of Indonesia Number 22/2001 concerning Oil & Gas • Law of The Republic of Indonesia Number 30/2007 concerning Energy • Law of The Republic of Indonesia Number 23/1997 concerning Environmental Management • The Government Regulation of The Republic of Indonesia Number 36 of 2004 concerning Oil and gas Downstream Business Activities • Regulation of Minister of Mining and Energy Number : 06 P/0746/M. PE/1991 concerning Safety Audit to Installation, equipment and Technique used in Oil and Gas Mining and Geothermal resources PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) © DJ MIGAS 2009

280509 DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI REGULATION CONTEXT RELATED TO NGV UTILIZATION (CONT) • Minister of Mining and Energy Regulation Number 0007 Tahun 2005 concerning the Rule and Guideline for Downstream in Oil & Gas Activities • Decree of The Director General of Oil & Gas Number 84. K/38/DJM/1998 concerning Inspection Guidelines and Procedures for occupational Safety of the Plant, Equipment and Engineering employed in the Mining Operation of Oil and Gas as well as Exploitation of Geothermal Resources. • Presidential Regulation Number 5/2006 concerning National Energy Policy • Presidential Regulations Number 27/1999 concerning Environmental Impact Assesment PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) © DJ MIGAS 2009

280509 DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI OIL AND GAS SAFETY OPERATION PARADIGM TO BE SAFE, RELIABLE AND ENVIRONMENTAL FRIENDLY OIL & GAS INSTALLATION VISION TECHNICAL REGULATION AND MONITORING IN OIL & GAS INDUSTRY REGULATION MANDATORY SNI & SKKNI AND SNI & STANDARD WORKER SAFETY PUBLIC SAFETY ENVIRONMENTAL KESELAMATAN SAFETY LINGKUNGAN INSTALLATION SAFETY PROTECTION HEALTH AND SAFETY OF WORKER SAFETY OF PUBLIC SOCIETY ENVIRONMENT AROUND INSTALLATION OIL AND GAS INSTALLATION PREVENTION ACCIDENT OF ACTIVITY ACCIDENT OF PUBLIC SOCIETY POLLUTION DAMAGE OF INSTALLATION FORM • CLAUSES • • • STANDARDIZATION OF COMPETENCY WORK PLACE WORK ENVIRONMENT OPERATING PROCEDURE (SOP) THRESS HOLD LIMIT VALUE (NAB) PERSONAL PROTECTION EQUIPMENT (PPE) WARNING SIGN SAFETY INSPECTION CERTIFICATE OF EQUIPMENT PRODUCT SAFETY SIGN SAFETY MANAGEMENT • • • Socialization of hazard oil and gas activities WARNING SIGN CERIFICATE OF SUITABILITY CERTIFICATE OF COMPETENCY PRODUCT SAFETY SIGN PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) • CHEMICAL MATERIAL • EQUIPMENT DESIGN • ENVIRONMENTALLY FRIENDLY • CHEMICAL SUBSTANCES FOR OPERATION TECHNOLOGY FOR OPERATION AND ENVIRONMENTAL MANAGEMENT ENVIRONMENTAL CONTROL EQUIPMENT AND MATERIAL ENVIRONMENTAL QUALITY STANDARD HUMAN RESOURCES EMERGENCY RESPONSE SYSTEM • • • OPERATING AND MAINTENANCE PROCEDURE EQUIPMENT AND INSTALLATION CERTIFICATE OF COMPETENCY SNI CONFORMITY SIGN AVAIBILITY OF FIRE EQUIPMENT FIRE DRILL PRODUCT SAFETY SIGN © DJ MIGAS 2009

280509 DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI DEMAND SUPPLY/UTILIZATION OF THE INDONESIAN OIL AND GAS SYSTEM EXPLOITATION PROCESSING TRANSPORTATION STORAGE TRADING UTILIZATION GMB LPG IMPOR GAS S P S REF GAS PIPELINE LNG RT S GAS EXPORT OIL EXPORT St CNG BBG C St BBG C RG LPG S S C BBG P REF St P C OIL BBM C T BBM S REF OIL IMPOR BBM T Maks. 10% St Process FROM OTHER SECTOR C BBL St S P = Separator = Pipe REF= Refinery T = Tank RT = Receiving Terminal RG = Regasication PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) C = Consumer St = Station GMB = Gas Methane B (Coal Bed Methane) © DJ MIGAS 2009

DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI 280509 TRADING BUSINESS ENTITIES OBLIGATION Law of The Republic of Indonesia number 22/2001 concerning Oil and Gas , The Business Entity or Permanent Establishment shall ensure: • the standard and quality applied in accordance with the provisions of the prevailing laws and regulations and shall apply good engineering practices. • health and safety and environmental management and comply with the provisions of the prevailing laws and regulations in the Oil and Gas business activities. PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) © DJ MIGAS 2009

280509 DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI SPECIFICATION OF NGV IS BASED ON THE DECREE OF DIRECTOR GENERAL OF OIL AND GAS NUMBER: • 10 K/34/DDJM/1993 concerning NGV Specification for Vehicle in Indonesia • 2527. K/24/DJM/2007 concerning Standard and Quality LPG for Vehicle in Indonesia PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) © DJ MIGAS 2009

DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) 280509 © DJ MIGAS 2009

DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) 280509 © DJ MIGAS 2009

280509 DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI OIL & GAS SAFETY TERMS 1. Gas Fuelling Station (SPBG) plant shall comply with the provisions of the prevailing laws and regulations and standard example: – SNI 13 -3499 -2002 concerning Process Piping – SNI 13 -3032 -2002 (ASME IX) concerning Welding Qualification – SNI 05 -3563 -1994 (ASME VIII) concerning Pressure Vessel 1 -A 2. Gas Bottle used for Vehicle shall comply standard (example: ISO 11439 Gas Cylinders – High pressure cylinders for the on-board storage of natural gas as a fuel for automotive vehicles) 3. Man power, must be competence based on competency standard (example: SKKNI Downstream – Upstream Oil and Gas Industrial Sub Sector (Supporting) Aviation Sector PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) © DJ MIGAS 2009

280509 DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI Law of The Republic of Indonesia number 22/2001 concerning Oil & Gas Article 40 (1) The Business Entity or Permanent Establishment shall ensure the standard and quality applied in accordance with the provisions of the prevailing laws and regulations and shall apply good engineering practices. (2) The Business Entity or Permanent Establisment shall ensure health and safety and environmental management and comply with the provisions of the prevailing laws and regulations in the Oil and Gas business activities. (6) Provisions on work safety and health as well as environmental management as referred to in paragraph (1) and paragraph (2) shall be further regulated by Government Regulation. PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) © DJ MIGAS 2009

DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI 280509 The Government Regulation of The Republic of Indonesia Number 36 of 2004 concerning Oil and Gas Downstream Business Activities Article 54 (1) The Minister shall determine the Technical Standard of the Gas Fuel and LPG bottles, Gas Fuels and LPG refilling facilities, and LPG bottling Plant of the Business Entity holding a Gas Fuel and LPG Trading Business licence. (2) The Minister shall determine the Minimum Technical Standard of distribution facilities and equipment PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) © DJ MIGAS 2009

280509 DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI Decree of The Director General of Oil & Gas number 84. K/38/DJM/1998 concerning Inspection Guidelines and Procedures for occupational Safety of the Plant, Equipment and Engineering employed in the Mining Operation of Oil and Gas as well as exploitation of Geothermal Resources Plant and Equipment Subject to the Inspection for Occupational Safety according to the Attachment 1 of Decree of The Director General of Oil & Gas. Storage and Marketing Plant, that are: a. Seafed Depot Plant; b. Inland Depot Plant; c. Aircraft Fuelling Depot (DPPU) Plant d. Transit Terminal Plant; e. Public Fuelling Station (SPBU) and Gas Fuelling Station (SPBG) plant f. Other plant related to the storage and`marketing activities. PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) 15 © DJ MIGAS 2009

280509 DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI PRIORITASKAN THANK YOU www. migas. esdm. go. id PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) 16 © DJ MIGAS 2009

DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI 280509 ATTACHMENT PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) 17 © DJ MIGAS 2009

280509 DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI The infrastructure of CNG/NGV utilization – Mother & Filling station: CNG Stations Owner Comment Jakarta PT Petross Gas Public Bus Cikarang – West Java PT IEV Gas Indonesia CNG for industry & internal usage, now preparing for NGV public supply Cikarang – West Java PT Citra Nusantara Gemilang CNG for industry Cikarang – West Java PT Cipta Niaga Gas CNG for industry PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) © DJ MIGAS 2009

280509 DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI Barriers: • NGV users safety awareness • Less cylinder qualified inspector • Inspector training and certification testing must meet highest safety standard • Industry Codes and Standards must be kept up to date for safety • If possible, cylinder life should be extended beyond 15 – 20 years. PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) © DJ MIGAS 2009

DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI 280509 Technical Approach should be taken: • • Public and industry awareness campaign Training scholarships for cylinder inspector CNG cylinder safety monitoring activities CNG cylinder certification PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) © DJ MIGAS 2009

280509 DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI Codes & standards related: Document NFPA 52 – Vehicular Fuel Systems Code Applicability CNG vehicles and fueling facilities NFPA 1 – Fire Code ANSI NGV 1 -2006 – CNGV Fueling Connection Device CNG vehicular fueling connection devices ANSI NGV 2 -2006 – CNGV Fuel Containers CNG fuel containers ANSI NGV 4. 1/CSA 12. 5 -1999 – NGV Dispensing Systems CNG vehicular fuel dispensing systems ANSI NGV 4. 8/CSA 12. 8 -2002 – NGV Fueling Station Reciprocating Compressor Guidelines Compressor packages containing reciprocating compressors used in CNG fueling station services PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) © DJ MIGAS 2009

280509 DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI Codes & standards related: Document Applicability ANSI PRD 1 -1998 (with 1999 & Pressure Relief Devices for CNG Fuel 2007 addenda) – Basic Containers Requirements for Pressure Relief Devices for NGV Fuel Containers CGA C-6. 4 -2007 – Methods for External Visual Inspection of NGV Fuel Containers and their Installations CNG vehicular fuel containers 49 CFR 178. 56 – Specification 4 AA welded steel cylinders CNG cylinders for fuelling stations ETC PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) © DJ MIGAS 2009

280509 DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI Possibilities – Targets in reflection of sustainable development • Spreading the CNG technology in the field of developing safe & low emissions public transport vehicles is an existing alternative that points into the future. This may create the foundations of the necessary network of filling stations, which is the basis of usage for the other purposes PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) © DJ MIGAS 2009

280509 DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI NATIONAL ENERGY POLICY FRAMEWORK EXPLORATION PRODUCTION SUPPLY SIDE POLICY SUPPLY GUARANTEE ENERGY PRICE DEMAND SIDE POLICY SOCIAL AWARENESS PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) CONSERVATION (PRODUCTION OPTIMATION) DIRECT SUBSIDY DIVERSIFICATION CONSERVATION (EFICIENCY) © DJ MIGAS 2009

280509 DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI NATIONAL ENERGY CONSERVATION STRATEGY C O O P E R A T I O N ENERGY SUPPLIER Increasing Added Value by Implementing EE & C Program ENERGY EQUIPMENT PRODUCERS • Labeling • Standardization CONSUMERS OR ENERGY USERS Electricity Fuel Oil Demand Side Management N E T W O R K I N G ENERGY SAVING AND ENVIRONMENTAL PROTECTION PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) © DJ MIGAS 2009

280509 DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI TARGET OF ENERGY MIX (Presidential Regulation No. 5 of 2006) Energy Mix 2025 Primary Energy Mix 2006 Hydro Power 3. 11% Geothermal 1. 32% Gas 28. 57% Oil 20% Gas 30% Biofuel 5% RE, 17% Geothermal 5% Biomass, Nuclear, Hydro Power, Solar, Wind Power 5% Oil 51. 66% Coal 15. 34% Energy Elasticity = 1, 8 PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) Liquefaction Coal 2% Coal 33% Energy Elasticity < 1 © DJ MIGAS 2009

280509 DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI Biofuel (Biooil) 0. 0% Electricity 36. 1% Gas (Container) 0. 0% Gas (Pipe) 0. 1% Biofuel (Bio. Diesel) 0. 0% LPG 19. 0% Electricity 40. 1% LPG 10. 6% Biofuel (Bio-Oil) 0. 0% Gas (Pipe) 0. 0% Biofuel (Bio. Etanol) 7. 6% Electricity 0. 0% Diesel 45. 9% Coal (Briquette) 1. 2% Biofuel (Biooil) 3. 7% Gas (Container) 1. 5% Gas (Pipe) 6. 4% Biofuel (Bio. Diesel) 0. 4% Biofuel (Bio-Oil) 1. 9% Electricity 0. 0% Gas (Pipe) 1. 4% Diesel Gasoline 54. 0% PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) 42. 3% Gasoline 46. 5% Transportation Sector 2010 Transportation Sector 2006 Gasoline 28. 1% Coal (Briquette) 0. 1% 53. 1% Household & Commercial Sector 2010 Household & Commercial Sector 2006 INDONESIAN’S ENERGY TARGET 2010 © DJ MIGAS 2009

280509 DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI Gas 19. 6% Electricity 13. 1% Gas 20, 4% Electricity 12, 4% Gasoline 27, 8% Coal 22. 5% Gasoline 43. 8% Coal 34, 9% LPG 1. 1% Biofuel 3, 1% Gas 14. 3% Gasoline 23. 7% Biofuel 0. 9% Coal-Hybrid 0. 0% Coal-Hybrid 2. 2% Coal 71. 4% Gas 8. 3% Geothermal 5. 3% Gasoline 2. 7% Biofuel 0. 8% Hydro 9. 6% Coal 46. 2% PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) Hydro 7. 8% Geothermal 6. 8% Power Generation Sector 2010 Power Generation Sector 2006 LPG 1, 4% Industrial Sector 2010 Industrial Sector 2006 INDONESIAN’S ENERGY TARGET 2010 © DJ MIGAS 2009

280509 DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI ENERGY EFFICIENCY IMPROVEMENT TARGET 60 million KL 50 40 Average Saving of Fuel Usage is 20 Million KL/Year DIESEL 30 20 10 KEROSENE GASOLINE 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Gasoline Kerosene Diesel LGV Biogasoline City Gas LPG 3 Kg Gas (Alt Diesel) Gas (Alt Gasoline) Biodiesel Note: - Starting October 2005 Industrial Diesel is not subsidized anymore 29 PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) © DJ MIGAS 2009

280509 DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI GREEN OIL GAS INDUSTRY INITIATIVES FOSSIL AND ALTERNATIVE FUELS UTILIZATION concept ZERO FLARE ZERO DISCHARGE ZERO WASTE CLEAN AIR GO RENEWABLE SUSTAINABLE DEVELOPMENT F E E D B A C K Alternative Fuel OPTIMALIZATION OF FOSSIL FUEL UTILIZATION PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) © DJ MIGAS 2009

280509 DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI CNG Process Flow PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) © DJ MIGAS 2009

280509 DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI Environmental Management 1. Indonesian government plans Zero Waste and Zero Discharge programs in 2014, in order to manage solid waste and wastewater on oil and gas activities, 2. As a part of emission management, Indonesia also has ratified “Kyoto Protocol” through Law No. 17/2004. Source of Emission : - Immobile Source Emission - Mobile Source Emission PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) : Flare Stack : Vehicles © DJ MIGAS 2009

280509 DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI Some potential projects on Oil and Gas Sector which can be adopted as CDM projects are: - Utilization of gas flaring The total volume of gas flaring Year 2008 is 113 MMSCFD. Some of these gases are utilized as Gas Fuel, Raw material in CNG & LPG Plant - Improvement of Energy Efficiency - Fuel Substitution PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) © DJ MIGAS 2009

280509 DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI TOTAL VOLUME OF FLARING GAS AT OIL & GAS SECTOR YEAR 2008 UPSTREAM ACTIVITY PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) DOWNSTREAM ACTIVITY © DJ MIGAS 2009

DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI 280509 GAS FLARE LOCATION IN INDONESIA PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) © DJ MIGAS 2009

DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI 280509 FLARE GAS REDUCTION PROGRAM PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) © DJ MIGAS 2009

280509 DEPARTEMEN ENERGI DAN SUMBER DAYA MINERAL DIREKTORAT JENDERAL MINYAK DAN GAS BUMI FLARE GAS REDUCTION PROGRAM (Cont. ) Has been approved by the EB CDM The Project has been evaluated in the National Comitee of CDM / KLH PRIORITASKAN KESELAMATAN MIGAS (PRIORITY OF OIL & GAS SAFETY OPERATION) © DJ MIGAS 2009