Page 12 - AsianOil Week 11 2023

AsianOil ENERGY TRANSITION AsianOil

Indonesia sets rules for CCS/CCUS

in pursuit of lower emissions,

increased output

INDONESIA INDONESIA’S Ministry of Energy and Min- production,” it added.
eral Resources announced on March 10 that it In implementing CCS/CCUS in upstream oil
Indonesia wants to had established the regulations for the imple- and gas working areas, there are four points for
repurpose its depleting mentation of carbon capture and storage (CCS) regulation, according to the statement: techni-
oil and gas reservoirs projects as well as those for carbon capture, uti- cal aspects, business scenarios, legal aspects and
for carbon storage. lisation and storage (CCUS) as part of the gov- economic aspects. The ministry said that the
ernment’s effort to “realise low emissions and source of CO2 for the facilities would not only be
encourage increased oil and gas production.” from oil and gas, but also from other industries
Indonesia is a major source of greenhouse gas through a business-to-business mechanism with
(GHG) emissions, while oil and gas production oil and gas working area contractors.
is declining. Technical aspects must address firstly cap-
A statement released by the ministry said it ture, transport, injection, storage, monitoring
had discussed the subject through a long pro- measurement, reporting and verification, as
cess that involved various related parties. “CCS/ well as good engineering standards based on
CCUS is a new thing for Indonesia, so that the characteristics of each location. The business
preparation of regulations is carried out from scenario is to be to based on a co-operation con-
the design to the implementation stage,” direc- tract in the oil and gas working area. The regula-
tor-general of Oil and Gas Tutuka Ariadji said in tions also stipulate that monitoring activities be
the statement. So far, the ministry has approved carried out up to 10 years after the completion
one CCUS facility at BP’s Tangguh LNG project of the closure of CCS/CCUS activities. The eco-
in West Papua. nomic side of the regulations cover the moneti-
“Indonesia has geological formations that can sation of carbon credits.
be used to store carbon emissions permanently Besides BP, Indonesia’s state-owned oil and
through the use of technology," the ministry gas company has had negotiations about CCS/
statement said. The regulations are “also use- CCUS projects with several companies includ-
ful for encouraging an increase in oil and gas ing ExxonMobil, Mitsui and Inpex. ™

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