Feasibility Studies with the Aim of Developing a
Joint Crediting Mechanism in FY2017
Feasibility Study for Project Development of
CCUS (CO2-EOR) in South Sumatra, Indonesia
New Energy and Industrial Technology Development Organization (NEDO)
Japan Petroleum Exploration Co. Ltd. (Lead) and Sojitz Corporation
Feasibility Study for Project Development of CCUS (CO2-EOR) in South Sumatra, Indonesia
Conducted by: Japan Petroleum Exploration Co. Ltd. (Lead) and Sojitz Corporation
NEDO Feasibility Studies with the Aim of Developing a Joint Crediting Mechanism
Country: Indonesia Sector: Carbon Capture and Storage
Study Outline
The Indonesian government has set a greenhouse gas
(GHG) emissions reduction target of 29% (which would
increase to 41% if assistance from other countries is
received) from business as usual levels by 2030. Additional
oil recovery through EOR technology is one of the
Indonesian government’s basic policies. Depleted conventional oil fields and CO₂ sources such as natural gas
processing plants, which are potential sites for CCUS
projects that will lead to GHG emissions reduction and
additional oil recovery, are the targets of this study.
CO₂ removed at a gas processing plant in South Sumatra
can be transported and injected into oil fields for storage though EOR technology and achieve 300 ktpa of CO₂emissions reduction. The estimated overall CO₂ emissions
volume in South Sumatra is 3,600 ktpa. If CCUS (CO₂-EOR)
technology is successfully implemented, the level of CO₂emissions reduction from this area could reach 2,200 ktpa. As CO₂-EOR technology is widely implemented over the
next 10 years, the installation of support infrastructure (e.g., CO₂ pipelines) is also expected to increase so that CO₂ can
be recovered from nearby thermal power plants with further
emissions reduction expected in the range of several million
tons.
To address the first and second technical issues, a pilot test
utilizing WAG technology (see slide four) will be conducted
as the first example of CCUS implementation in Indonesia.
If shown to be economically viable, this feasibility study
could serve as a pioneering effort for Indonesia to promote
the diffusion of CCUS implementation not only in South
Sumatra but also in other areas of the country and
potentially make possible larger acquisitions of carbon
credits.
Working together with LEMIGAS, a major national oil and
gas research and development institute in Indonesia, the
study examined the feasibility of conducting a carbon
capture, utilization, and storage (CCUS) carbon dioxide enhanced oil recovery (CO₂-EOR) operation utilizing water
alternating gas (WAG) technology in South Sumatra. Any
carbon credits acquired through the project will be applied to
the Joint Crediting Mechanism (JCM).
Summary
Needs of partner country
1. Controlling CO₂ pressure in oil reservoirs in South Sumatra is
difficult due to the typically heterogeneous properties of
sand/mud alternating layers.
2. During identification of CO₂ sources and mature oil fields, there
is a possibility of not being able to carry out miscible
displacement because of pressure drops caused by the
shallow depth of oil layers and oil production activity.
3. No established methodology exists to quantify emission
amounts.
Technical issues
Prospects for dissemination
Estimated reduction of greenhouse gas emissions
2
Study Items and Objectives
Study Items Objectives
1 Reservoir simulation/CO₂-EOR
for specific oil fields using WAG
method
Estimation of incremental oil in the case of continuous CO₂ and WAG injection
methods by using reservoir simulation model Preparation of simplified reservoir model for further investigation of CO₂ injections
2 Study of CO₂ sources and sinks
for selection of suitable oil fields
Investigation of CO₂ sources and CCUS target oil fields in South Sumatra area
where many oil fields suitable for CCUS are expected to be found
3 Cost estimation of capital and
operating expenditures for basic
project facilities, and analysis of CO₂ emissions reduction
Preparation of facility and well conceptual design and cost estimates using
specialized software which generates estimates of capital expenditures, operating
expenditures, and energy consumption. Costs for oil wells were calculated for both
new and refurbished wells.
4 CCUS project scheme and
economic analysis
Consideration of project structure, including financing options
Evaluation of project economics under contemplated structure
5 Pilot test planning and design Preparation of conceptual pilot test design, schedule, and cost estimates
6 Introduction of CO₂ credits and
study of monitoring, reporting,
and verification methodologies
Preparation of draft JCM methodology for project by referring to draft ISO standard
and ACR (American Carbon Registry methodology)
7 Investigation of CCUS
regulatory framework in
Indonesia
Investigation of Indonesian regulatory framework relevant to CCUS, e.g.
regulations relevant to CCUS pilot test and commercialization
3
NEDO Feasibility Studies with the Aim of Developing a Joint Crediting Mechanism
Country: Indonesia Sector: Carbon Capture and Storage
WAG technology
Monitoring technology
The CCUS technology in this project consists of CO₂ storage and
utilization technology known as CO₂-EOR. Japan Petroleum
(JAPEX) has expertise in CCS technology with an ongoing CO₂injection demonstration project in Tomakomai and a CO₂-EOR pilot
test at its Sarukawa oil field located in Akita Prefecture.
Since this study involves storing CO₂ in underground reservoirs, it is necessary to monitor
the safety and stability of the injected CO₂. JAPEX already has experience in utilizing
various monitoring technologies (e.g., inter-well pulse testing, logging, and seismic
tomography) at its Sarukawa oil field.
Technology Outline
CCUS technology
13,250m
7,100m
Depth of Grid Top = 1217.5m
Depth of Grid Bottom = 1607.5m
390m
Water alternating gas (WAG) technology is an improved oil recovery
method which works by alternately injecting water and gas. In
heterogeneous oil layers with different levels of permeability, a common
situation in Indonesia, the modification of gas and water alternating
injections is necessary to increase the amount of recoverable oil in
each layer. JAPEX already has experience in utilizing WAG technology
at Japanese oil fields similar to those found in Indonesia, for example,
at its Sarukawa and Iwafuneoki oil fields in Niigata Prefecture.
INJ-CO2
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 14,000
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Gas Saturation 3000-01-01 J layer: 21
INJ-CO2
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Gas Saturation 2100-01-01 J layer: 21
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Gas Saturation 2025-01-01 J layer: 21
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Gas Saturation 2500-01-01 J layer: 21
25 years
100 years
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1000 years
INJ-CO2
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Permeability I (md) 2025-01-01 J layer: 21
model
Source: Japan CCS Co., Ltd.
Tomakomai CCS demonstration plant
EOR pilot test results from Sarukawa oil field
Example of CCS study
WAG concept
Monitoring results
CO₂ injection start
Injection wellProduction wellObservation well
10
m
CO-2 CO-1
Source: JNOC-JAPEX “Joint research for
EOR technology, CO₂ flooding Sarukawa
project,“ fiscal year 1999 report
NEDO Feasibility Studies with the Aim of Developing a Joint Crediting Mechanism
Country: Indonesia Sector: Carbon Capture and Storage
CO₂ injection starts
CO₂ injection ends
Achievements and Challenges
5
Achievements
Development of new approach to effectively reduce CO₂ in
compliance with JCM by applying WAG to adjacent oil fields
in multiple phases.
Simulations based on a simplified model suggest thathigher level of CO₂ emissions reduction and
larger increments of oil are obtained during WAG injections and CO₂ continuous injections in multiple
phases.
Reductions of capital expenditures by using CO₂recycling facilities in oil fields.
Challenges
Need for dialogue with Indonesian stakeholders such as
Directorate General of Oil and Gas (DG MIGAS) and
Pertamina, the state-owned oil and gas corporation, to jointly
study whether multiphase WAG approach can be applied to
actual oil fields from technical to commercial levels.
Need to establish business relationship and conduct joint
study with Pertamina in order to, among other things, select candidates for CO₂ sources and sinks.
Prior to commencement of commercial-scale CCUS project, pilot test indispensable not only for CCUS (CO₂- EOR)
technology but also for any other type of EOR technology.
For commercial development of CCUS (CO₂-EOR)
technology in Indonesia, need for cooperation and
collaboration between public and private sectors in Indonesia
and Japan.
Image of areal multiphased WAG as CCUS (CO₂-EOR)
Comparison of WAG and CO₂ continuous injection methods
NEDO Feasibility Studies with the Aim of Developing a Joint Crediting Mechanism
Country: Indonesia Sector: Carbon Capture and Storage