40th JCCP International Symposium

Energy Transition andReducing GHG Emission inIndonesia through CCUS
Implementation on Oil &Gas Field:
Progress and Opportunity
Thursday, 27 January 2022
universitaspertamina.ac.id@universitaspertamina

universitaspertamina@univpertamina

Background & Motivation
PRESIDENCY’S FRAMEWORK, G20 INDONESIA 2022

“RECOVER TOGETHER, RECOVER STRONGER”
Enabling Environment& Partnership

Promotingproductivity

Increasing
Resilience &Stability

Ensuring
Sustainability
and Inclusive
GrowthStronger Collective
Global Leadership

G20 Comprehensive Exit Strategy Actions Plan
G20 Comprehensive
Recovery Action PlanMAIN TOPICS
Lighthouse Deliverables

CROSS-CUTTINGSYNERGY TOPICGLOBAL HEALTH

DIGITAL ECONOMIC
TRANSFORMATION

Post-pandemic global
health governance andarchitecture

Post-pandemic global
economic order withdigitalization

Improving Supply ofvaccines & essential
medical products

Creating Economic
Values for Digital
TechnologyENERGY TRANSITION
Global Cleaner Energy
Systems and JustTransitions

Achieving Global Deal
to accelerate energy
transitions

Economic digitalization, SMEs empowerment, Women and Youth Empowerment, Creative Economy, Human Resources Improvement (inc. transforming andvocational education), Economic Recovery (inc. vaccine production and access), Just Transition (Access to technology and finance, Job-shifting)

Finance Track Issues, Structural Reform, Human Capital, National Vaccines Production Capacity, Innovation
3Background
1. National Energy Plan (RUEN) of Indonesia
Enhanced Oil Recovery (EOR) technology is one of the solutions
to increase oil and gas production in Indonesia.

2 TUESDAYJune8,2021

2. Commitment of GoI to Reduce Green House Gas (GHG)
Emission in COP 21 - Paris.

Indonesia'sclim

WhenPresident

29 % business as usualReduction Scenario
GHG Emission by 2030

JoePresident

is hopedJoko"Jokowi"
Widodospoke
at United States

But while

Biden's

ClimateLeadership Summit in April, hemade three key comments consistent with other coal producing and consuming nations, andthe direction of the World Coal

Association.

Firstly, he underscored Indo-

41 % with international
supportin the c

pected t

actual v

pected tofrom hi
economiThese

onstratethe clim

is. Coupnesia's commitment to tacklingnance M

climate change as an issue whichis in the "national interest". Secondly, he invited global leaders

possibili
tax regim
evant thto support

gies neepart ofdevelopingcountriesin realizing their climate ambitions in a "credible way". Thirdly,
he said the Paris Agreement partnership had to be "strengthened"aroundabetterunderstand-ing of the strategies which canaccelerate net zero emissions.

carbon nThe qdonesia
coal-fired
sweringcomplexHe also highlighted Indone assessm
sia's openness to investment andtechnology transfer, including
investment for the energy transition. Last month, Indonesia an-two very

The con envir
CO2 emisReducing GHG Emission from Energy Sector and its opportunity for CCS-CCUS
Indonesia is committed to reduce GHG Emission by 29% in 2030 and could be up
to 41% if there is international support
NoSector

GHG Emission Reduction(MTon CO2e)

GHG Emission Level
2010(MTon CO2e)

BaU

CM1

CM2

CM1CM2GHG Emission Level 2030 (MTon CO2e)

1

Energy*

453.2

1,669

1,335

1,271

334

398

2

Waste

88

296

285

270

1126

3

IPPU

36

69.6

66.85

66.35

2.75

3.25

4

Agriculture

110.5

119.66110.39115.8694

5

Forestry**

647

714

217

64

497

650

TOTAL

1,334

2,869

2,034

1,787

834

1,081

38% of emission reductions come from the energy sector

IPPU = Industrial Processes and Production Use* Including fugitive**Including Peat fireà To get 20C compatible should be NDC +CCS&CCUS and while for 1.50C compatible
needs NDC + BECCS (Bioenergy withCCS&CCUS)

Unrecoverable
Oil in Placeà CCS and CCUS implementations are notincluded in Indonesian NDC as the tool that
could reduce the GHG emissions, because it
was predicted that these kinds of technologies
are too expensive.

à The concept of CO2-injection implementation in the form of CO2-EOR or CO2-EGR are introduced
by National CoE for CCS/CCUS since the end of 2019, when the preparation of the Gundih CCS
project is revised to become the Gundih CCUS projectCO2 Sources from Main Energy Sectors in Indonesia and its plan andopportunity for CCS-CCUS implementation
Our target for GHG emission reduction from energy sector from 2020 – 2030 (10 years): ~ 400 Mton of CO2.
Some facts about CO2 from some sites in Indonesia:- Total CO2 that could be injected in Gundih field for 10 years ~ 3 Mton of CO2- Total CO2 that could be injected in Tangguh field for 10 years ~ 32 Mton of CO2- Total CO2 that could be produced from all main fields in Eastern Java (Gundih, Banyu Urip, Sukowati, and JTB) for 10years ~35 Mton
- Potency of CO2 to be injected from Banggai Ammonia Plant (Central Sulawesi) for 10 years ~ 9 Mton of CO2- Potency of pure CO2 injection from DME Project in Tanjung Enim – South Sumatra for 10 years (from coal gasification)~ 40 Mton of CO2 (there will be another 25 Mton of CO2 for 10 years from boiler incl impurities)- Released of CO2 from PLTU Cirebon (650 MW, 80% capacity factor) for 10 years ~ 45 Mton of CO2 (Note: 1 MWh ~ 1ton of CO2)
- CO2 released from all Coal-fired power plants in Indonesia (totally 35 GW, 80% capacity factor) ~455 Mton of CO2
à Thus, CCUS can play an important role in Indonesia, since there are a lot of CO2 sources from energy sector, but
their locations are close to depleted oil reservoirs and coal mining, so that CO2-EOR, CO2-EGR and CO2-CBM canperhaps be carried out economically in Indonesia.

Economical Motivation of CCUS Implementation in Indonesia:
Make oil and gas fields more environmental friendly & they give economic benefit e.g. from incremental production--- A Study from an Indonesian EGR Project Plant: Analysis on Carbon Credit Sensitivity for Project Economics --Contractor PTCF Case 1-A @ 2045 with Carbon Credit
2020

2025

2030

2035

2040

2045

Assumptions: Injection of CO2 starts in 2026 & all CO2- credit could be soldPTCF (Mil US$)

Estimated Project pay out time for• Carbon Credit 15 US$/tCO2e• Carbon Credit 25 US$/tCO2e• Carbon Credit 35 US$/tCO2e•

PTCF Comparison for project 35 US$ carbon credit is1.6 times as profitable as the project with 25 US$
carbon credit and 2.4 times more profitable comparedto the project with 15 US$ carbon credit.

•

Based on the calculation, carbon credit is able toreduce operating expenditure to zero, therefore
increasing profit for both contractor and theGovernment of Indonesia.

Year
Carbon Credit 15 US$/tCO2e

Carbon Credit 30 US$/tCO2e

Carbon Credit 60 US$/tCO2e

Carbon Credit (US$/tCO2e)

Carbon Credit Sensitivity-EGR Implementation in a field inIndonesia
45: Q1 2032: Q4 2030: Q2 2029

352515PTCF, (Mil US$)GoI TakeContractor PTCF

References of Carbon Pricing Around the World:• EU ETS : 25 US$/tCO2e (50-60 US$/tCO2e in 2022)• Hitachi: 46.7 US$/tCO2e• Iceland Carbon Tax: 31.3 US$/tCO2e• Beijing Pilot ETS: 10.4 US$/tCO2e

CCUS is also needed fordownstream oil and gas
industries

No ID

FIELD_NAME

1Senoro2Tiaka34Donggi
Matindok

OPR_CURRJOB Pertamina-Medco E&P Tomori
Sulawesi (JOB PMTS)JOB Pertamina-Medco E&P Tomori
Sulawesi (JOB PMTS)
PT Pertamina EP
PT Pertamina EP

PROD_STAT

GN_HC_TYPE

FLD_SQKM

Producing

Oil & Gas Fields

56.9

Temporarily shut-in

Oil & Gas Fields

6.9

Producing
ProducingGas Fields
Gas Fields

14.1
5.92

Latest Status of Gundih Project as an example:
Shifting from CCS Pilot Project to CCUS (CO2-EGR) Project
Map of Gundih area and its surrounding areas
Kedunglusi

Kedunglusi

Cepu

KEDUNGLUSIKTB – RBT – KDL FIELDS(Gundih Area)q 70 MMSCFD
for 12 years
q CO2 = 21%,equivalent to800 tpd

NEW Scenario of CCUS Project in GUNDIH AREA (Starting from 2019)
Time Structure Map of Kujung Fm& Proposed CCS well location

Currently Gundih CPP releases 800 tpd of CO2. If all of available
CO2 is injected to Kedungtuban structure:- 3 mio of CO2 will be reduced for 10 years injection time.
- Incremental gas production (80% CH4) of 36 BSCF for 10 years,equivalent to approx. USD 100 - 120 mio.
- The Capex for 10 years CO2 injection = USD 49 mio, total OPEX =USD 20 mio- Offering participation of foreign institutions for injecting CO2,e.g. using JCM scheme (Initial CO2 injection will be 2025)

Increase Gas Production
up to 5.4% (36 BSCF)

Breakthrough:15 years after 1st injection

100 years after 1st injection

Regulation to support CCS-CCUS activity in Indonesia
Regulation will cover some points such as :• Revision to existing regulation in oil and gas• The need to provide regulations that support CCUS activities in Indonesia
including a system that account CO2• To build an agency/board/entity that will certify the MRV methodologies
in a specific CCUS project in Indonesia• The need to prepare and form an attractive carbon market in Indonesia• Supporting projects related to monetization of Associated Gas Recovery
and Fuel Producing Facility e.g. with JCM Scheme toward Zero Flaring

INDONESIA CENTER OF EXCELLENCE FOR CCS
AND CCUS

universitaspertamina.ac.id