Natural gas dominates the upstream scene in Indonesia.
That's apparent in a ranking of Indonesia's major players by Wood Mackenzie Consultants Ltd., Edinburgh.
Mobil Oil Indonesia Inc. is the top upstream operator in terms of value of assets, net cash flow, and acreage portfolio. Its value stems largely from 100% ownership of the North Sumatra Block B production sharing contract, which holds giant Arun gas field.
Caltex Petroleum Corp., Dallas, is lndonesia's leader in terms of remaining reserves and production through subsidiary Caltex Pacific Indonesia.
TOP PLAYERS
Wood Mackenzie said the grip on Indonesia's upstream sector by Mobil and Caltex is demonstrated by the fact that their combined cash flow is only a little less than the combined net cash flow of other companies in the country's top 10 operators.
Mobil has the largest overall acreage portfolio in Indonesia, with interests in about 56,500 sq km and an average license interest of 78%. Caltex is the second largest acreage holder, with interests in about 42,500 sq km at an average license share of 98%.
Wood Mackenzie reckons U.S companies dominate the Indonesian oil and gas scene, accounting for 51% of the country's upstream asset value.
Atlantic Richfield Indonesia Inc., for example, leaped from 50th in the cash flow ranking to fifth this year.
This was attributed to a significant increase in gas production due to start-up of Pagerungan and KLX/KLY gas fields last year and a decrease in capital spending after completion of development of those projects.
ACCENT ON GAS
Ranking of assets held by Mobil and Japan's Inpex Corp. above those held by Caltex despite Caltex producing almost half of Indonesia's liquids, is said to indicate how much better contract terms are for gas than oil in Indonesia at present.
"Significantly," Wood Mackenzie said, "seven of the top 10 companies by value supply gas to LNG facilities at either Arun or Badak. Of the top 10 companies, seven have more than 60% of their remaining reserves in the form of gas."
Wood Mackenzie also said better fiscal terms being offered to companies exploring Indonesia's frontier areas and the prospect of higher oil i prices in the medium term will encourage new production sharing contracts.
"Consequently, the split in (gas vs. oil) value could change significantly over the next few years to reflect the fact that Indonesia is still only a semimature hydrocarbon province," the analyst said.
Indonesia's remaining recoverable reserves were pegged at 12.7 billion bbl of oil equivalent, with liquids making up 47% and gas 53%.
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