Publications

Carbon reduction initiatives are being declared which address current high carbon fields and for future oil and gas development. These initiatives are aligned with government plan on CCS/CCUS program where government has finalized government regulation for upstream industry to be part of emission reduction target in the country. According to government directory, some ongoing studies in current oil or gas producing fields indicate to start injecting CO2 as early in 2023 for pilot project and in 2027 full scale. Apart from subsurface challenge of finding a feasible reservoir candidate for CO2 storage, the economics of carbon storage project are yet challenging. Furthermore, a project with carbon storage scope might require additional capex in the range of 30-50% for a green field development. The scope includes building CO2 pipeline and installing compressors for CO2 injection into the reservoir As a result, it creates another economic burden, particularly for low-economics and marginal field development. This paper investigates the impact of the carbon storage program on the overall cost and economics of gas development project. The model is based on a greenfield development in typical cost recovery PSC terms applied in Indonesia. The paper gives some insights into how more studies and supports are required to make the project more economically viable.