I was honored to be asked to be the Chairman of the Indonesian Gas Summit in Jakarta, during March, 2016. Thus I thought I should give a summary of my long history in the natural gas and LNG sector

1. Stranded Gas to
Stranded Markets
A personal journey
Peter Cockcroft

2. My first time in Jakarta - 1965!
2
I stayed at the Intercon
Hotel (later called the
Hotel Indonesia) with my
father, who was writing a
book about Indonesia from
October – December 1965

3. 3

4. Arun LNG
4
My role: young guy with TI-59,
so I could do some of the
commercial computations for
Pertamina for Train 4

5. KE-5 Gas Field, East Java Sea
pipeline to Gresik (1987)
5
Price discussions took 3 meetings
My role: VP Engineering and lead negotiator, Kodeco

6. A crazy idea (1992)
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We had a gas discovery in the OK Block that was
far from existing pipeline but close to the railway
to Palembang. It didn’t go ahead because of
reserves uncertainty
My role: Operations Manager, OK Block JOB

7. Sengkang gas to power project (1994)
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• Gas price meetings – 1
• Well organized IPP process by
DGEED in Jakarta
My role: President, Energy Equity Asia

8. Lematang (Harimau Field) “gas cap”
(1993)
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Sold the gas cap gas into a Pertamina pipeline that was
onsold to PUSRI, near Palembang, Pertamina took all
commercial risks

9. Bayu-Undan Gravity Based LNG
9
My role: BHP Country Manager for Indonesia

10. 10
Bayu-Undan
again………
Meeting with guerilla leader,
Xanana Gusmao, in Cipinang Prison,
Jakarta, 16 August 1998.
He agreed to honor the existing
fiscal regime of Indonesia if
Timor-Leste got independence –
this act meant that the Bayu-
Undan LNG project was viable
with mitigation of the political
risk.
This far-seeing diplomatic act,
ensured that Timor-Leste had a
consistent revenue stream for its
first 20 years of independence.

11. Kakinada LNG Import Terminal
(1998)
11
This project
did not work
because of too
many
stakeholders
who were not
aligned
My role: BHP Petroleum India Country Manager

12. Pakistan – Qadirpur, Kadanwari,
Zamzama, Bhit (1999-2004)
12
1 BCF/d of new gas was brought on in 4 years,
after General Musharaff took over in a military
coup and brought in a technocrat apolitical
cabinet
My role: Managing Director, Premier-Shell Pakistn

13. Greater Sunrise LNG (2007)
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Border disputes that could not be resolved
My role: Energy Advisor to President and Prime Minister of Timor leste

14. France Coal Gas (2011)
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We were lucky, Government intervention was kept
to a minimum. We sold the gas to Total into a low
CV pipeline
My role: Managing Director of European Gas Limited

15. Usual drivers for Strong Projects
§ Strong sponsors
§ Competitive costs and compelling economics
§ Strategic product
§ Well-crafted contractual arrangements
§ Operating track record
§ Highly rated host country
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16. My Lessons Learned
1. Regulatory framework needs to be well defined
2. Integrated project risk identification necessary
3. Existing infrastructure nearby – the less “moving
parts”, the better
4. Gas projects are commercially driven – not
engineered driven (different to oil)
5. Remember – gas projects never come under budget!
So do your risk assessment early and often
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17. 17
Peter Cockcroft
16 March, 2016