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Oil and Gas Business in Indonesia

Tuesday, 19 October 2010
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Oil and gas business activities in Indonesia are carried-out under two (2) types of activities i.e. upstream and downstream business activities.

Upstream Business Activities

Upstream business activities are the core business activities or based on activities which consist of exploration, and exploitation. Exploration is an activity aimed at obtaining information on the condition geology to find and obtain the estimated reserves of Oil and Natural Gas specified in the Work Area. Exploitation is a series of activities aimed to produce oil and Gas from the specified Work Area, which consists of drilling and completion of wells, construction of transportation facilities, storage, and processing for the separation and purification of Oil and Gas in the field as well as other activities that support it.

Downstream Business Activities

Downstream activities are the business which consist of processing, transporting, storing, and trading. Processing is an activity to purify, obtain the parts, enhance quality, and enhance the added value of petroleum and/or natural gas, butnot including field processing. Transporting is the activities of splitting oil, gas, and/or results processed from the Work Area or from shelters and treatment, including gas transport by pipeline transmission and distribution. Storing is an activity of receiving, collecting, storage, and expenditure oil and/or gas. Trading is the activity of the purchase, sale, export, import of petroleum and/or results processed products, including trading of natural gas via pipeline.

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