Designing CO2-EOR in Indonesia by Matching Business Strategy: Study Case East Java Field, Indonesia

JTB and SKW Field are proven fields which are hydrocarbon producing fields in Indonesia. JTB Field which is part of the Cepu Block is a proven field as well as the SKW Field which belongs to Pertamina EP Block. These two fields are 40 km apart and are currently a stranded field due to different operators. The JTB field is an early development field with CO2 characteristics > 35%, while the SKW field is a mature field with oil producers. The SKW field has been produced for more than 30 years so it is a mature field with a fairly high decline rate. Feasibility Study conducted to these project to know incremental value, especially value of engineering and carbon emission incentives from this project. After the formation of integration in the existing fields, where these two fields are under 1 Region, so that the integration of these two fields becomes possible. This integration is necessary considering that currently the JTB Field will be onstream in 2022, while on the one hand the SKW Field has started studies related to CO2 EOR. The pilot project that will be implemented is expected to be a pilot and proof of CO2 EOR which is a very new technology in the oil and gas industry in Indonesia. Carbon emissions for around that can be saved with this method become integrated value engineering that provides value creation. For implementation on pilot phase, capital expenditure about USD 75 millions with additional carbon value around USD 30 millions. This paper will use a Value engineering approach combined with environmental analysis to see the value and incremental value for these two fields. Feasibility Study of this integrated project will be used for searching another financing and get evaluated by project sanctions Deliverable for this feasibility study to calculate incremental return and amount of carbon emission value for this integrated project.