The new management policy: Indonesian PSC-Gross split applied on CO2 flooding project

"SIAD" oil field will be developed by CO2 flooding. CO2, a famous pollutant gas, is injected into the oil reservoir to optimize the oil recovery. This technique should be conducted economically according to the energy management policy in Indonesia. In general, Indonesia has two policy con...

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Bibliographic Details
Published in:IOP conference series. Earth and environmental science 2018-01, Vol.106 (1)
Main Authors: Irham, S, Sibuea, S N, Danu, A
Format: Article
Language:English
Subjects:
Carbon dioxide
Economic indicators
Economics
Energy
Energy management
Energy policy
Flooding
Indicators
new energy management policy
Oil
Oil and gas fields
Oil fields
Oil recovery
Oil reservoirs
Pollutants
PSC-Gross-Split
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Summary:"SIAD" oil field will be developed by CO2 flooding. CO2, a famous pollutant gas, is injected into the oil reservoir to optimize the oil recovery. This technique should be conducted economically according to the energy management policy in Indonesia. In general, Indonesia has two policy contracts on oil and gas: the old one is PSC-Cost-Recovery, and the new one is PSC-Gross-Split (introduced in 2017 as the new energy management plan). The contractor must choose between PSC-Cost-Recovery and PSC-Gross-Split which makes more profit. The aim of this paper is to show the best oil and gas contract policy for the contractor. The methods are calculating and comparing the economic indicators. The result of this study are (1) NPV for the PSC-Cost-Recovery is -46 MUS$, while for the PSC-Gross-Split is 73 MUS$, and (2) IRR for the PSC-Cost-Recovery is 9%, whereas for the PSC-Gross-Split is 11%. The conclusion is that the NPV and IRR for PSC-Gross-Split are greater than the NPV and IRR of PSC-Cost-Recovery, but POT in PSC-Gross-split is longer than POT in PSC-Cost-Recovery. Thus, in this case, the new energy policy contract can be applied for CO2 flooding technology since it yields higher economic indicators than its antecendent.
ISSN:1755-1307
1755-1315
DOI:10.1088/1755-1315/106/1/012108