Publications

In response to the pressing need for carbon reduction, various initiatives have been launched to address the high carbon footprint associated with current and future oil and gas development. These initiatives are in alignment with the government's comprehensive plan for Carbon Capture and Storage (CCS) and Carbon Capture, Utilization, and Storage (CCUS) programs. The government has already established regulations that mandate the upstream industry's active participation in reducing emissions within the country.

Based on information from the government directory, ongoing studies within existing oil and gas production fields have indicated plans to commence CO2 injection as part of a pilot project in early 2024, with full-scale implementation scheduled for 2028. However, the implementation of carbon storage initiatives faces several challenges, including the identification of suitable reservoirs for CO2 storage and the economic viability of such projects. Additionally, projects involving carbon storage often necessitate a substantial increase in capital expenditure, ranging from 30% to 50%, particularly for greenfield developments.

This extended scope encompasses the construction of CO2 pipelines and the installation of compressors for efficient CO2 injection into the reservoir, thereby adding a considerable economic burden, especially for projects in low-economic and marginal fields.

This paper investigates the economics of injecting CO2 from the X field into the depleted Y oilfield or the X aquifer. The research is founded on a greenfield development model employing typical cost recovery Production Sharing Contract (PSC) terms commonly applied in Indonesia. The findings highlight the urgent need for further studies and support to enhance the economic feasibility of these projects and contribute to a sustainable and environmentally responsible energy future.