USD 3 Billion investment needed, CCS/CCUS funding will not be regulated by ministerial decree

Jatibarang, West Java – Director General of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM) Tutuka Ariadji said Wednesday (27/10), funding for CO2-Enhanced Oil Recovery (EOR) injections in mature oil fields, as part of Carbon capture, utilization and storage (CCS/CCUS) technology applications will not be regulated in a ministerial regulation which is currently still under inter-ministerial discussion. The technology investment that will be applied by British Petroleum (BP) Indonesia at the Tangguh LNG project in Bintuni Bay, West Papua requires an investment of around USD 3 billion.

“(The CCS/CCUS regulation) has passed the third administrative process, and is currently being discussed article by article. I think there is only one article left and hopefully it can be finished before the G20 Summit,” said Ariadji after the Jatibarang CO2 Injection Kick Off event in Indramayu Regency.

Regarding the funding scheme, he said that the application of CO2-based EOR technology could be open, including getting funding from abroad. As is the case in Japan through the joint crediting mechanism (JCM).

JCM itself, is an initiative of the Government of Japan that encourages Japanese private organisations to invest in low-carbon development activities in Indonesia through incentives. In addition, Ariadji said, CCS/CCUS funding could be included in the development planning of each oil and gas company’s working area. “Companies make plans, which are included in the BOD (Operating Expenses Budget). BOD is approved by the government, the mechanism process is as usual,” he said.

The CO2-based EOR (advanced oil drain) in the Jatibarang well is still a trial run. Meanwhile, the CO2 injection claimed to be one of the largest in the world was actually carried out by BP Indonesia in the Tangguh LNG field. CO2 injection into the bowels of the earth can be up to 25 million tons for 10 years. “The EOR CO2 project at Tangguh next year is in the FID (final investment decision) stage. It will function in 2026,” he said. (Hartatik)

Photo banner: Director General of Oil and Gas Ministry of Energy and Mineral Resources (ESDM) Tutuka Ariadji accompanied by Pertamina SVP Research Technology and Innovation Oki Muraza, SKK Migas Advanced Oil Field Development Technology Manager Arif Bagus Prasetyo, General Manager PT Pertamina EP Zone 7 Andri Haribowo, Board of Commissioners of Pertamina Hulu Energi Nanang Untung, Director of Exploration for Pertamina Hulu Energi, Muharram Jaya Panguriseng, Director of Reservoir Evaluation of CCS Group JOGMEC Hiroshi Okabe and Vice President of Upstream RTI Pertamina Merry Marteighianti at the Ceremonial Kick Off Jatibarang CO2 Injection Show Case in Indramayu Regency , Wednesday (26/10). (Photo: Hartatik)

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