Engaging with Local Communities A VICO Perspective May 2013 - - PowerPoint PPT Presentation

Engaging with Local Communities A VICO Perspective

May 2013

Delivering Clean Energy Safely

VICO Indonesia

Engaging with Local Communities

VICO Overview

MUTIARA 152 MMCFD / 12200 BPD NILAM 165 MMCFD / 3300 BPD BADAK 80 MMCFD / 1100 BPD SEMBERAH 28 MMCFD / 1400 BPD

• VICO has been operating in Kalimantan since

the early 1970’s.

• VICO operates the Sanga Sanga PSC (oil

and gas) and the Sanga Sanga CBM PSC.

• VICO is a 50:50 partnership between BP and

Eni.

• Driving force behind LNG development in

Indonesia

• Delivered over 12 Tcf of gas to domestic and

export markets

• Leading CBM explorer in Indonesia and first

to produce and sell CBM gas to LNG and domestic power generation.

VICO Indonesia

Engaging with Local Communities

VICO at a glance

• 4 main production centers
• 4 camps (1 primary)
• 800+ Development wells

drilled

• 2,850+ gas/oil reservoirs
• 54 compressors

(incl. 10 rentals)

• 25 generators
• 185 pumps
• 82 pressure vessels
• 13 glycol dehydrators
• 24 heater treaters
• 23 storage tanks
• 1,000 km of pipeline

VICO Indonesia

Engaging with Local Communities

VICO External Affairs Goals

• Be a recognized industry leader in responsible energy development,

innovative solutions and good neighbor practices.

• Deepen trust through relationships based on mutual advantage by “doing

the right thing” in the communities where VICO operates.

–

Assess local community CSR projects based on “need” not “want”.

–

Ensure local communities participate in VICO activities through encouraging contractors to use local labor where possible.

– Manage expectations in terms of VICO role in development of local communities.

• Prevent criticism and misunderstandings of VICO’s business by

maintaining open, honest and coordinated communications with SKKMIGAS, MIGAS, Central and local government, landowners, community leaders and media.

• Establish VICO’s brand and reputation profile to support VICO business
• bjectives.

VICO Indonesia

Engaging with Local Communities

Investing for today and the future

Base 2006 100 200 300 400 500 600 700 800 900 2004 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012

Inlet Gas Rate, MMCFD

Rigless Workover New Wells Frac Facilities Dynacoil RDS Base 655 MMCFD 535 MMCFD 473 MMCFD 452 MMCFD 435 MMCFD 428 MMCFD 385 MMCFD MMCFD 378

Base Base Base Base Base Base Base Base 531 MMCFD 416 MMCFD 367 MMCFD 341 MMCFD 320 MMCFD 312 MMCFD 292 MMCFD 268 MMCFD 51% 47% 49% 39% 44% 45% 47% 48%

10 20 30 40 50 60 70 80 90 100 1 2 3 4 5 6 7 8 9 10 1999 2001 2003 2005 2007 2009 2011 2013 2015

Number of New Wells Number of Rigs

Number of Rigs (Conventional+CBM) Number of Rigs (Conventional) Number of New Wells (Conventional+CBM) Number of New Wells (Conventional)

Decline Review

VICO is investing in both conventional and CBM drilling to maintain conventional gas production and develop CBM for the future.

VICO Indonesia

Engaging with Local Communities

Land Access

• VICO needs to purchase and build 80 to 100 new well sites a

year

• Each location can require up to 2,000 truck loads of material

and 3 months to build and pile.

• Many locations require new roads.

Our 40 years of experience ensures our land survey, acquisition and construction team works with the local community to ensure construction activities occur in a way that avoids disruption and benefits the area.

VICO Indonesia

Engaging with Local Communities

Re-greening

After drilling VICO undertakes a re-greening exercise to restore the natural vegetation.

VICO Indonesia

Engaging with Local Communities

Rig Technology

• 1. Many fewer loads to move.
• 2. Faster rig- up time.
• 3. Less rig footprint and smaller well site

size.

• 4. Reduced height.
• 5. Automation – less people.
• 6. Quieter.

CBM Rig Conventional Rig

Kutai- 3 well site: 165m x 90m HH-75 well site: 82M m x 57m

1/3

VICO Indonesia

Engaging with Local Communities

Artificial Lift Pump Technologies

Linear rod pumps (LRPs) vs Beam Pumps Minimal exposed working parts Quieter, less visual impact

VICO LRP LRP in parking lot in US Beam Pump – large visual signature, noisy and many exposed moving parts.

VICO Indonesia

Engaging with Local Communities

Overlap with Coal Mining

Coal mining activities are frequently in the same area as VICO activities. VICO works with coal mining companies to establish MOUs defining mining no-go areas and cooperation on roads and access issues.

VICO Indonesia

Engaging with Local Communities

Caring for our Communities

VICO received a CSR award for best practice supporting local rubber farmers from Harian Seputar Indonesia (SINDO) SKKMIGAS standard (PTK 017) governs public relations and community affairs

VICO Indonesia

Engaging with Local Communities

CBM to Electricity

VICO is now supplying CBM gas to PLN. The electricity from CBM gas powers more than 1,000 homes in East Kalimantan. This is the first CBM to Electricity Project in Indonesia.

VICO Indonesia

Engaging with Local Communities

Development with respect

BP San Juan field in an area of outstanding natural beauty in the US VICO aspires to achieve development of Indonesian

• il and gas resources with

respect for local communities and the environment.