The document summarizes BPMIGAS's Plan of Development (POD) approval process for oil and gas fields in Indonesia. It describes the three types of PODs, including POD I for initial field development which requires ministerial approval. The approval process for POD I takes 10-12 weeks and involves evaluation by a BPMIGAS POD team, preliminary and final presentations to BPMIGAS leadership, and ultimately approval by the BPMIGAS head. The document also outlines the typical contents and level of technical detail included in a POD for review.

1. PODPOD
(PLAN OF DEVELOPMENT)(PLAN OF DEVELOPMENT)
20032003
BPMIGASBPMIGASBPMIGAS
22
PlanPlan OfOf Development TeamDevelopment Team
1.1. AdvisorAdvisor :: MulyaniMulyani WahyonoWahyono
2.2. ChairmanChairman :: IraIra MiriawatiMiriawati
3.3. MembersMembers :: HeruHeru DjoniDjoni PP
Eko HariEko Hari EndrartoEndrarto
NizarNizar MujahidinMujahidin
Bayu KristantoBayu Kristanto
BPMIGASBPMIGASBPMIGAS

2. 33
SystematicsSystematics
I.I. ObjectiveObjective
II.II. DefinitionDefinition
III.III. Types of PODTypes of POD
IV.IV. POD Approval ProcessPOD Approval Process
V.V. POD HandlingPOD Handling
VI.VI. POD RevisionPOD Revision
BPMIGASBPMIGASBPMIGAS
44
To convey Approval Procedure/Process for PSCTo convey Approval Procedure/Process for PSC
PlanPlan ofof Development(POD)Development(POD)
I.I. ObjectiveObjectiveBPMIGASBPMIGASBPMIGAS

3. 55
Plan of Development :Plan of Development :
Plan to develop one or more oil and
gas field in an integrated way in order
to produce the hydrocarbon reserves
optimally by considering the technical,
economics and HSE aspects.
II. D e f i n iII. D e f i n i tt i oni onBPMIGASBPMIGASBPMIGAS
III.III. Types of PODTypes of POD
BPMIGASBPMIGASBPMIGAS

4. 77
Types ofTypes of PODPOD
1. Plan of Development I1. Plan of Development I
•• Prior to Law No. 22 of 2001, approval of the Development Plan foPrior to Law No. 22 of 2001, approval of the Development Plan for the first fieldr the first field
within a given Block/Work Area only required approval from Pertawithin a given Block/Work Area only required approval from Pertamina’s Managingmina’s Managing
Director, which also served as commerciality for the work area.Director, which also served as commerciality for the work area.
•• Since Law No. 22 of 2001 came into force:Since Law No. 22 of 2001 came into force:
In accordance with Article 21, Development Plans for the first fIn accordance with Article 21, Development Plans for the first field in a givenield in a given
Block/Work Area must obtain the approval of the Minister of EnerBlock/Work Area must obtain the approval of the Minister of Energy andgy and
Mineral Resources, based on considered opinions from BPMIGAS aftMineral Resources, based on considered opinions from BPMIGAS afterer
consultation with the government of the Province concerned.consultation with the government of the Province concerned.
In accordance with Article 17, if, after approval has been grantIn accordance with Article 17, if, after approval has been granted for the Firsted for the First
POD in a given work area, activities are not carried out withinPOD in a given work area, activities are not carried out within a maximuma maximum
period of five (5) years from the end of the exploration period,period of five (5) years from the end of the exploration period, the entire workthe entire work
area must be returned to the Minister.area must be returned to the Minister.
BPMIGASBPMIGASBPMIGAS
88
Types of PODTypes of POD
2. Plan of Development2. Plan of Development II and thereafter :II and thereafter :
The purpose is to develop one or more oil and gas field in an inThe purpose is to develop one or more oil and gas field in an integratedtegrated
way to develop/produce hydrocarbon reserves optimally with consiway to develop/produce hydrocarbon reserves optimally with considerationderation
to technical, economic, and HSE aspects.to technical, economic, and HSE aspects.
BPMIGASBPMIGASBPMIGAS
POD proposal is submitted to BPMIGAS, based on actual conditions
and approval by the Head of BPMIGAS.
Validity period of the POD is two (2) years from the date of approval.
Changes in Scope of Work or delay in implementation of the POD
without notification and approval will cause it to be considered
canceled/expired.

5. 99
3. POP (Put On Production)
Aim : To produce from a field with relatively
small reserves, using nearby production
facilities through “tie in” with existing
facilities.
Types of PODTypes of PODBPMIGASBPMIGASBPMIGAS
BPMIGASBPMIGASBPMIGAS
IV.IV.POD APPROVALPOD APPROVAL
PROCESSPROCESS

6. 1111
CONSIDERED OPINIONS
APPROVAL
FLOW CHART:
APPROVAL PROCESS FOR FIRST POD
MINISTER OF ENERGY
& MINERAL
RESOURCES
MINISTER OF ENERGY
& MINERAL
RESOURCES
BPMIGASBPMIGAS
CONSULTATION WITH
LOCAL REGIONAL GOVERNMENT
THROUGH DIRECTORATE GENERAL OF OIL AND GAS
CONSULTATION WITH
LOCAL REGIONAL GOVERNMENT
THROUGH DIRECTORATE GENERAL OF OIL AND GAS
BPMIGASBPMIGASBPMIGAS
PSCPSC
NOT APPROVED
1212
DEPUTY OF
PLANNING
P
S
C
RESEARCH
DIVISION
POD Team
Coordinator
APPROVED
NOT
APPROVED
FLOWFLOW OF POD EVALUATIONOF POD EVALUATION
DISCUSION
POD Team with PSC
& Evaluation Result
PRELIMINARY
MEETING
BPMIGASBPMIGASBPMIGAS
FINAL
PRESENTATION
POD Team
RESEARCH &
DEVELOPMENT
EXPLOITATION
Other FUNCTIONS
OPERATIONS
Finance- Eco &
MARKETING
EXPLORATION
22 weeksweeks 33 weeksweeks 22 weeksweeks 33 weeksweeks
APPROVAL
PROCESS
(Research Division)
Head of
BPMIGAS
PSC
(FINAL POD)
DRAFT
POD
Total: 10Total: 10 weeksweeks
Head of
Division Research &
Development
DEPUTY OF
PLANNING
POD Team
HEAD OF
BPMIGAS
DEPUTY OF
PLANNING

7. 1313
FLOW CHARTFLOW CHART -- POD APPROVALPOD APPROVAL
Process under condition - no principle problems (10 weeks)
Process under condition - there are problems which still need further discussion with the team (12 weeks)
Process under condition - there are management problems and or non technical problems (>12 weeks)
Field
Economic
Section/
Research & Dev
Division
Deputy of Planning
BPMIGAS
PP S CS C
Evaluation
Result
Approval
Process
POD
* For POD - I - need approval from Minister
Evaluation
Result
Sub Surface Aspects
Coordinator : EPT Study
Team : EPT, EKS,
Other Functions
Technical Operations Aspects
Coordinator : Field
Economic
Team : Operations, EPT,
Other Functions
Coordinator : Field
Economic
Team : PDA, EPT, Marketing,
Other Functions
Economic Aspects
Discussion
PRELIMINARY
PRESENTATION
Discussion
Evaluation
Result
Discussion
Head of BPMIGAS *
BPMIGASBPMIGASBPMIGAS
HEAD OF
BPMIGAS
PSC
(FINAL POD)
FINAL
PRESENTATION
DRAFT
POD
22 weeksweeks 33 weeksweeks 33 weeksweeks22 weeksweeks
1414
Volume, Schedule, Price
HOA
GSA
• Geology,
Reservoir
Modelling
• Development
Production &
Facilities
(Conceptual).
Discovery
Pre POD
Study
Market
• Reserves
Certification
P1, P2, P3
• Development
& production
Scenario
(detail study)
Facility
Construction
Design
(FEED,
Benchmarking)
Economic
Facility & Construction
Re- Design
Subsurface
Re Evaluation
Approval
Evaluation
POD
Yes
No
APPROVAL PROCESSAPPROVAL PROCESS
GAS DEVELOPMENTGAS DEVELOPMENT
BPMIGASBPMIGASBPMIGAS

8. V.V. POD HandlingPOD Handling
BPMIGASBPMIGASBPMIGAS
1616
Content ofContent of PODPOD
1. Geological Findings
2. Reservoir Description
3. Drilling Results
4. Field Development Facilities
5. Project Schedule
6. Exploration Incentives
7. Production Results
8. Project Economics
1. Executive Summary
2. Geological Findings
3. Exploration Incentives
4. Reservoir Description
5. Secrec/EOR Incentives
6. Field Development Scenarios
7. Drilling Results
8. Field Development Facilities
9. Project Schedule
10. Production Results
11. HSE & Community Development
12. Abandonment
13. Project Economics
14. Conclusion
OldOld NewNew
BPMIGASBPMIGASBPMIGAS

9. 1717
1. Executive Summary1. Executive Summary
Summary of Plan of Field
Development which consist of
Technical, Economical and HSE
BPMIGASBPMIGASBPMIGAS
1818
2. Geological Findings2. Geological Findings
Explain the geological finding for oil and gas by using the latest
geological data based on logs and cutting analysis which is used
to revise geological map.
Geologycal Overview :
– Regional Geology:
Boundary (If any), Formation, faults, sedimentary type, age of corresponding
formation
– Stratigraphy
– Structure : Types of Folding, faulting, or unconformities
– Correlations : correlation among wells (structural / Stratigraphic)
– Maps : Top & bottom structures, Net sand/carbonate Isopach, revised as new
data available.
BPMIGASBPMIGASBPMIGAS

10. 1919
a.a. New Field :New Field :
- Incentive package is given to motivate the Contractor to
keep doing exploration activities.
Procedure to obtain the incentive is refered to the ”guidance”
which was issued by the Exploration Division.
The price difference between Old Oil and New Oil is intended
to encourage the PSC to keep conducting the exploration
activities during the first 60 months (incentive period)
- Incentive : DMO Fee New Oil & Investment credit
b.b. PraPra--TertierTertier ReservoirReservoir incentiveincentive (as per PSC Contract)(as per PSC Contract):
- DMO Fee New Oil & Investment credit
- Change of Split
3. Exploration3. Exploration IncentiveIncentiveBPMIGASBPMIGASBPMIGAS
2020
PROPOSAL GUIDANCE FOR DETERMINING NEW FIELDPROPOSAL GUIDANCE FOR DETERMINING NEW FIELDBPMIGASBPMIGASBPMIGAS
POINT
CRITERIA
EXPLORATION CONCEPT
STRATIGRAPHIC
POSITION
STRUCTURAL TREND
DISTANCE FROM
EXISTING FIELD
RISK
GEOLOGICAL
RISK
API
DEF.
LOGISTICAL
RISK
DISTANCE FROM
EXISTING INFRASTRUCTURE
2.5 5 7.5 10
TOTAL
POINT
OLD
EXISTING MODEL
IN NEAREST STR.
OLD
EXISTING MODEL
IN WORKING AREA
NEW
EXISTING MODEL
IN ADJACENT
NEW
NO MODEL
IN ADJACENT
- FORM
- MEMB.
- ZONE
- FORM
- MEMB.
NEW - ZONE
- FORM
NEW - MEMB.
NEW - ZONE
NEW - FORM
NEW - MEMB.
NEW - ZONE
SAME
SAME CULMINATION
SEALING FAULT
SAME
SEPARATE
CULMINATION
SAME
PARALEL
POSITION
NEW
NOT
PARALEL
< 5 KM 5 - 10 KM 10 - 25 KM > 25 KM
< 50 KM 50 - 100 KM 100 - 200 KM > 200 KM
Geological risk = 60% x total point =
Logistical risk = 40% x total point =
Weighted Grand Total =
> 20 NEW FIELD
15 – 20 OTHER FACTOR TO BE CONSIDERANCE
< 15 NO INCENTIVE

11. 2121
4. Reservoir Description4. Reservoir Description
a. Reservoir Conditiona. Reservoir Condition
– Initial condition :
Pi, Ti, Bgi, Rsi, Boi, Pb,
– Rock characteristic :
H, Vcl, porositas, Sw, K, Cr
– Fluid properties :
Bg, Bo, Bw, Rs, Viscosity (Oil & Gas)
– Driving Mechanism :
Gas cap drive, solution gas drive, expansion gas drive, water
drive, and combination drive.
For production forecast and recovery factor calculation.
b.b. Hydrocarbon InHydrocarbon In--placeplace
Utilize the Volumentric Method and reservoir simulation.
BPMIGASBPMIGASBPMIGAS
2222
4. Reservoir Description4. Reservoir Description
c. Hydrocarbon Reservesc. Hydrocarbon Reserves
Reserves are divided into 3 categories:Reserves are divided into 3 categories: Proved, Probable, PossibleProved, Probable, Possible
Proved ReservesProved Reserves ::
The quantities of crude oil, condensate, natural gas, natural gas liquids and
associated substances which geological and engineering data demonstrate with
reasonable certainty to recoverable in the future from known oil and gas reservoirs
under existing economic and operating conditions (P-90).
ProbableProbable ReservesReserves ::
Probable reserves are less certain than proved reserves and can be estimated with a
degree of certainty sufficient to indicate they are more likely to be recovered than not.
This estimate takes into consideration known geology, previous experience with
similar types of reservoir and seismic data, if available. (P-50)
PossiblePossible ReservesReserves ::
Possible reserves are less certain than probable reserves and can be estimated only
with a low degree of certainty. Insufficient information is available to indicate whether
they are more likely to be recovered than not. (P-10).
BPMIGASBPMIGASBPMIGAS

12. 2323
d.d. Production Forecast/IncrementalProduction Forecast/Incremental
ProductionProduction
Forecast hydrocarbon production in the future by
using the methods/assumptions which is used in the
calculation, as follows :
- Decline curve analysis
- Reservoir Simulation
4. Reservoir Description4. Reservoir DescriptionBPMIGASBPMIGASBPMIGAS
2424
Secondary Recovery
Improve the hydrocarbon recovery by adding the natural
energy by injecting fluid (water flooding and gas flooding).
E O R
All methods related to the use of the external energy resource
to recover the oil which is not produced under conventional
methods (Primary and Secondary Recovery), For example:
steam flood and chemical flood.
Incentive
Secrec and EOR will obtain incentive in the form of
investment credit dan DMO
5.5. SecrecSecrec/EOR/EOR InsentifInsentifBPMIGASBPMIGASBPMIGAS

13. 2525
6. Field Development Scenarios6. Field Development Scenarios
Explain the field development scenario which consist of :
• Phasing Development
• Full Development
• Development Strategy
• Production Optimization
• Local Content : The products and services that will be used
directly to structural building and infrastructure development
with regard to the field development should prioritise the
domestic product/service.
• etc
BPMIGASBPMIGASBPMIGAS
2626
Consist ofConsist of ::
a.a. Platform/cluster/well locationPlatform/cluster/well location
onshore, offshoreonshore, offshore
b.b. Well design :Well design :
vertical, deviated, horizontal, radial, slim holevertical, deviated, horizontal, radial, slim hole
c.c. Drilling ScheduleDrilling Schedule
d.d. Drilling reportDrilling report
e.e. CompletionCompletion
7. Drilling7. DrillingBPMIGASBPMIGASBPMIGAS

14. 2727
8. Field Development Facilities8. Field Development Facilities
a.a. Primary Recovery FacilitiesPrimary Recovery Facilities
1. Offshore Production Facilities
- Offshore Platform Facilities
Jacket, Deck, Processing Facilities, etc.
- Other Offshore Facilities
Sub marine pipeline production junction facilities,
Disposal Facilities, Storage etc.
- Additional Facilities
Civil construction, Office, Living Quarter, etc.
2. Onshore Production Facilities
Consist of : Processing facilities, Flow-line and storage
facilities, Disposal facilities.
3. Artificial Lift Equipment
b.b. Enhanced Oil Recovery FacilitiesEnhanced Oil Recovery Facilities
BPMIGASBPMIGASBPMIGAS
2828
9. Project Schedule9. Project Schedule
Describe the sequences of the completion target of activities
during the filed development, such as :
•• Planning :Planning :
- Screening study
- Feasibility study
- Conceptual Engineering
•• Execution :Execution :
- Detail Engineering
- Procurement
- Fabrication
- Installation
- Commissioning
•• OperationOperation
BPMIGASBPMIGASBPMIGAS

15. 2929
10. Production Results10. Production Results
Describe the activities to lift the hydrocarbon and to
increase the production (if any) by means of :
1. Stimulation
2. Gas Lift
3. Pumping
4. Sec.Rec.
5. Enhanced Oil Recovery
BPMIGASBPMIGASBPMIGAS
3030
11. HSE & Community Development11. HSE & Community Development
Comprehensive study related to the effects of a
certain field development to the Health, Safety and
Environment (HSE) in the areas close to the field that
will be developed. There are four stages :
• Pre-Contruction,
• Construction,
• Operation,
• Post-Operation
BPMIGASBPMIGASBPMIGAS

16. 3131
12. Abandonment & Site Restoration12. Abandonment & Site Restoration
Explain the technical and cost study with regard to
the field abandonment mechanism both onshore
and offshore in case the field is no longer
economics to be produced and will be permanently
abandont.
BPMIGASBPMIGASBPMIGAS
3232
13. Project Economics13. Project Economics
Economics Analysis Calculation based on the latest data :
– Certified Reserves.
– Production forecast
– Development cost:
Investment : Well cost, production facilities cost,
pipeline cost, compressor, platform.
Operating cost : Direct production cost,
work over/stimulation,
maintenance, G&A
BPMIGASBPMIGASBPMIGAS

17. 3333
•• Economics IndicatorEconomics Indicator
– Government :
GOI (Government Income) and Percentage of
Government Income to the Gross Revenue.
– Contractor :
Net Cashflow (NCF), Internal Rate of Return (IRR),
Net Present Value (NPV).
– Profit to Investment Ratio (PIR), Pay out Time (POT)
– Sensitivity Spider diagram
Based on 4 parameters :
Price (Oil & Gas), Capex, Opex and Production
13. Project Economics13. Project EconomicsBPMIGASBPMIGASBPMIGAS
3434
14. Conclusion14. Conclusion
Conclude the field development by selecting
the best alternative from Technical and
Economical Perspective
BPMIGASBPMIGASBPMIGAS

18. VI.VI. POD RevisionPOD Revision
BPMIGASBPMIGASBPMIGAS
3636
POD RevisionPOD Revision
PODPOD that has been approved can be revised withthat has been approved can be revised with
considerations :considerations :
• Change in Development Scenario
• Change in oil and gas reserves significantly compare to
the initial plan.
• Change in Investment Cost
BPMIGASBPMIGASBPMIGAS

19. Thank YouThank You
BPMIGASBPMIGASBPMIGAS