WPB: Two global oil and gas giants operating in Indonesia, ExxonMobil and BP, have officially applied for permits to manage reservoir areas for carbon storage (Carbon Capture Storage). According to the regulation outlined in the Minister of Energy and Mineral Resources (ESDM) Regulation No. 16 of 2024, this permit application will be treated similarly to the bidding process for oil and gas management areas conducted by the government.
Dadan Kusdiana, Acting Director General of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM), stated that bp has applied for a new area as a carbon storage site, while ExxonMobil will manage a reservoir in collaboration with Pertamina.
“BP has already sent a letter to the Minister of Energy and Mineral Resources to process the permit. I just received it yesterday. Exxon as well. So far, these two companies have made progress,” Dadan said when met at the ESDM Ministry office in Jakarta on (January 10).
Carbon storage is planned to be discussed annually, similar to the Work Plan & Budget (WPNB) discussions in the oil and gas sector.
“We are still refining the regulations, but the indication is that it will be similar to WPNB. So, there will be an annual plan. However, the process will be simpler,” Dadan explained.
He is optimistic that many companies or entities will take the initiative to manage reservoirs for carbon storage. Pertamina, for instance, could benefit the most from the carbon capture and storage (CCS) business, as it holds numerous management rights over old reservoirs with depleting or exhausted reserves, which could be repurposed for carbon storage.
“For reservoirs that no longer contain oil and gas, this presents a dual benefit—first, extracting the remaining oil and gas, and then repurposing the reservoir for carbon storage. That’s the basic concept,” Dadan concluded
By WPB
Oil, Gas, Bitumen
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