CCS INITIATIVE IN INDONESIA

bybyWawan Gunawan A. Kadir

Vice Rector for Research and Innovation-ITB

Global CCS Institute’s Japan Regional Members Meeting, Tokyo

20 June 2013

OUTLINE

• CCS PROJECT SITUATION IN INDONESIA

• INDONESIA REGULATORY FOR CCS• INDONESIA REGULATORY FOR CCS

• GUNDIH CCS PROJECT

- HISTORY OF THE PROJECT

- REGIONAL GEOLOGY AND TECTONIC SETTING

- G&G CHARACTERISTIC OF CCS RESERVOIR TARGET

- TENTATIVE RESULTS

CCS PROJECT SITUATIONIN INDONESIA

• The president stresses Indonesia's Commitment toreduce emissions by 26% in 2020, and up to 41% if

Indonesian President Message(INDONESIA COMMITMENT G20 SUMMIT IN PITTSBURG)

reduce emissions by 26% in 2020, and up to 41% ifinternational support is forthcoming

• Two main contributions can be given by Indonesian EarthScientist (also through international cooperation) inreducing carbon emissions :1. Increasing the use of reneweble energy (geothermal)2. Introducing CCS and CO2-EOR to the community

and implementing those approaches in indonesianhydrocarbon fields

(Kadir, 2010)

TARGETS FOR 2025TARGETS FOR 2025 Maintain oil production level

PETROLEUM POLICYPETROLEUM POLICY Oil and Gas Supply Security

Oil And Gas Utilization

Oil and Gas Pricing Policy

POLICY AND TARGETSOF INDONESIA OIL & GAS MANAGEMENT

Maintain oil production level

50% national operatorship

Security of domestic Fuel Supply and Industrial Feedstock

91% local content (goods and services)

99% skilled national workforce

Unconventional Oil and Gas Business

Conservation Of Oil and Gas Production

Increasing National Capacity In Oil And Gas Industry

FUEL POLICYFUEL POLICY Feedstock & Fuel Supply Security 99% skilled national workforce

Achieving oil and gas safety, zero accidents, zero failure, and achievement of zero flares, and zero waste

Feedstock & Fuel Supply Security

Fuel Categorization

Pricing Policy

Fuel Diversification

Fuel Standard and Quality

Fuel Efficiency

Ministry of EM&R (2012)

OIL PRODUCTION DOMINANT GAS PRODUCTION DOMINANT

INDONESIA’S OIL AND GAS PRODUCTION PROFILE

Ministry of EM&R (2012)

ZERO FLARE PROGRAM

1. Preparing flare gas utilizationpolicy (CNG, LPG, City Gas, EOR,

350

400

FLARE GAS REDUCTION PROGRAM

Gas for Power Plant, LPG, CNG, Industry policy (CNG, LPG, City Gas, EOR,

Gas for Power Plant)

2. Socializing flare gas reductionpolicy to business entities (year2010);

3. Monitoring flare gas reductionimplementation (year 2010 –50

100

150

200

250

300

Fla

re G

as,

M M

S C

F D

LPG, CNG, Industry

3. Monitoring flare gas reductionimplementation (year 2010 –2025);

4. Achieving zero flare gas target inyear 2025.

0

50

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Fla

re G

as,

M

remaining gas flare

Ministry of EM&R (2012)

GREEN OIL AND GAS INDUSTRY INITIATIVE(GOGII)

CCS IN OIL AND GAS INDUSTRYCCS IN OIL AND GAS INDUSTRY

EFFICIENTENERGY UTILIZATIONOIL AND GAS FUELS

CO2OIL AND GAS

• EOR

CO2OIL AND GAS UPSTREAM &

DOWNSTREAM ACTIVITIES

• INDUSTRY

• CCS

Ministry of EM&R (2012)

AREA FOR CCS POTENTIAL IN INDONESIA

THAILAND

PHILIPINESNatural CO2 Source

Depleted Oil Reservoirs

Pacific Ocean

Natuna

BRUNEI

EASTMALAYSIA

Banda Aceh

SINGAPORE

Bontang LNG Plant

Attaka

KALIMANTAN

IRIAN JAYA

Sangatta

MALAYSIA Depleted Oil Reservoirs & CO2 from LNG Plant

AUSTRALIA

Indian Ocean

JakartaJ A V A

BALI

TIMOR

I N D O N E S I A

North part of East Java

Modified from Ministry of EM&R (2012)

SUMATRA REGION KALIMANTAN AND EASTERN INDONESIAREGION

PT PERTAMINA EP WORKING AREA

JAWA REGION Gundih JAWA REGION

Basin Producing 15

Basin With Discovery, Non Producing 8

Tested Basin, No Discovery 21

Untested Basin 21

PT PERTAMINA EP Working AreaAcreages: 140,000 km2

Gundih field

CO2 contents of Some Gas Fieldsin Indonesia

Milestone in IndonesiaCCS ProgramCCS Program

INDONESIA Regulatory coverage for CCS

KYOTO PROTOCAL

INDONESIA COMMITMENT G20 SUMMIT IN PITTSBURG

OIL AND GAS REGULATION RELATED TO CCS ACTIVITIES

EMISSION REGULATION

ACTIVITIES

PERMIT RELATED TO CCS LOCATION

CAPTURINGTRANSPORTINGSTORING RELATED REGULATION

SOCIO-POLITICAL AND CLIMATE CONSIDERATIONS

EFFECTS OF VERYING GEOLOGICAL

Related Oil and gas regulation framework (UU 22/2001)

UPSTREAMEFFECTS OF VERYING

PURITY OF CO2 STREAMS

GEOLOGICAL PERFORMANCE

(LEAKEAGE RISK)

DOWNSTREAMADEQUACY OF

MODEL TO PREDICT RESERVOIR

PERFORMANCE

MONITORING METHODOLOGY, DET

ECTION LIMIT

PERTAMINAINDUSTRIAL

ORGANIZATIONPUBLIC ACCEPTENCE

CLIMATE REGIMEINCENTIVE

STRUCTURE

Indonesia Regulatory for CCS ?

-No law on CCS available in Indonesia (at Present). - Several regulation in Oil&Gas seem suitable for CCS arrangements

(it seem similarity). - Example: Minister Regulation No. 13/207, ‘Requirements and procedures of waste

• CCS activity will involve interest of multi-minister and agencies at central goverment, such as: Ministry of E&MR, Ministry of Environment, SKKMigas, etc.

- Example: Minister Regulation No. 13/207, ‘Requirements and procedures of waste water treatment for upstream Oil & Gas and geothermal activities using injection method into subsurface’

SKKMigas, etc.

• CCS activity covers several laws and regulations: Oil & gas mining laws, environmental regulation, pipelines regulation, National Constitution, transportation regulation, health & safety regulation

15

GUNDIH CCS PILOT PROJECT

GUNDIH CCS PILOT PROJECTHistory of the project

A collaboration effort that is conducted between: • Institut Teknologi Bandung, Kyoto University, • Pertamina UTC and Pertamina EP

Supported by• Japan International Cooperation Agency (JICA) and • Japan Science and Technology Agency (JST)

SATREPS (Science and Technology Research Partnership for Sustainable Development)

• Japan Science and Technology Agency (JST)

Ministry of E&MR

ADBNext involve

JICAJICAJST*JST* collaboration

Members of the SATREPS CCS Project

International joint research ・ITB (Institut

Teknologi Bandung)

・Pertamina EP and

・Kyoto University・University of Tokyo・Waseda University・Akita University

ResearchPartnership

Technical CooperationSupport

・Pertamina EP andPertamina UTC

. ITS, UNILA, Trisakti

. Unhas, etc

・Akita University・Toyama University, ・JAPEX (Japan

Petroleum Exploration Co, Ltd.)

・Fukada Geological Institute

Partnership

The study concerns approximately 0.3 million ton of CO2 emitted annually during production of natural gas in a gas field presently under development in the Gundih Area

BACKGROUND STUDY

Gundih Area

A pilot study for research and development of technologies for assessing both shallow and deep strata at sites of CO2 injection.

Essential for safe application of CO2 sequestration technologies, and for monitoring of underground distribution and behavior of CO2 through capacity development of organizations and human resources.

JAVA ISLANDJAVA ISLAND

11 22

33Study Area

KENDENG TROUGHKENDENG TROUGH

Smith (2005)

EAST JAVA BASINAL AREAEAST JAVA BASINAL AREA

TECTONIC ELEMENTS OF EAST JAVA BASINAL AREA

STRATIGRAPHIC CORRELATION AND NOMENCLATURES OF JAVA ISLAND

CCS TARGET

POST

POST

--RIF

TRI

FTSY

NSY

N--R

IFT

RIFT

PRE-RIFTSapiie et al., (2006)

N N –– S Central Java Cross SectionS Central Java Cross Section

Sapiie et al., (2006)

CO2 CONTENTS OF EAST JAVA BASINAL AREA

• Map showing trends of habitats of oil and gas in the East Java Basin.• Four trends can be recognized containing oil, thermogenic and biogenic gas fields.

• The habitats are closely related with the geologic setting and petroleum system. (Satyana and Purwaningsih, 2007)

KTB (Kedung Tuban) – RBT (Randu Blatung) – KDL (Kedung Lusi) fields

LOCATION MAP OF GUNDIH AREA

Kedunglusi

Kedunglusi

KEDUNGLUSI

KTB – RBT – KDL FIELDS(Gundih Area)

Cepu

KETERANGAN :: WORKOVER WELL

: PLAN OF SUBSURFACEDEVELOPMENT WELL

KTB-03TW

GEOGRAPHICAL MAP OF GUNDIH AREA

CCS PILOT PLAN

DEVELOPMENT WELL(CLUSTER SYSTEM)

: INJECTION WELL

: SETTLEMENT

: OPEN AREA

: RICE FIELD

RBT-03

KTB-06

• Gundih field was operated by PT. Pertamina EP, which has initial gas in place (IGIP) 435,96 BSCF and could produce 62 MMSCFD in 12 years.

FACT OF GUNDIH FIELD

• CO2 content which generated directly from the field is 21% from total gas, whereas if after through CPP (Central Processing Plant) the percentage of CO2produced is about 15% from total gas in this field (Kadir, 2012). (Kadir, 2012).

• PT. Pertamina EP provided 2D/3D seismic data and well data to evaluate subsurface GGR in this area.

DATA AVAILABILITY IN GUNDIH FIELD

• 2D/3D SEISMIC• 9 WELLS

Roll out plan: 2015 – 2025

Injection plan: inject up to 10,000 tonCO2 in 10 years in shallow storage (Ngrayong Formation)

Injection ScenariosInjection Scenarios

storage (Ngrayong Formation)

CO2 supply: at various rate (500 ton CO2/year - 0.1 MtonCO2/year)

Ekowati, in progress

• Ngrayong Formation in Gundih field doesn’t have a big closure to inject CO2. The formation has an open structure to the north that will have a possibility to migrate the injection of CO2 (Asikin, 2012).....The location was moved to north of Gundih.

• Kujung Formation does not provide sufficient storage capacity. With

Tentative ResultsTentative Results

• Kujung Formation does not provide sufficient storage capacity. With optimum injection surface rate of 960 tonCO2/year @ Pinitial = 940 psia, maximum total gas injection is 7000 tonCO2 in 10 years with negligible increase in pressure value (Ekowati, 2012).

• Ngrayong Formation provides sufficient storage capacity. With injection surface rate of 1,000 tonCO2/year, total gas injection could reach 10,000 tonCO2 in 10 years with negligible increase in pressure value (Ekowati, 2012). 2012).

• However, uncertainty factor is still large since many assumptions are used to generate the model properties. There is a possibility that injection at Ngrayong Formation will be leak to the surface or charging into Caluk structure through the northern fault.

• Future works will concentrate in determining possible location in the northern part of Gundih Field with most likely residual trapping mechanism.

THANK YOUTERIMA KASIH

ARIGATOU GOZAIMASUARIGATOU GOZAIMASU