CCS Investment in Masela Block to be Included in Cost Recovery

By Editorial Team 02/01/2024
oil and gas exploration
Summary

The Indonesian government has placed the development of Carbon Capture Storage (CCS) in the Abadi Field, Masela Block, under a cost recovery scheme. Dwi Soetijipto, the Head of the Upstream Oil and Gas Regulatory Task Force (SKK Migas), said this project marks the first instance where CCS-related costs have qualified for inclusion in cost recovery based on the production sharing contract (PSC) scheme. "The CCS Hub at the Abadi Masela Project adds to the list of CCS initiatives, affirming the oil and gas industry's commitment to reducing carbon emissions," he said on Dec 28, 2023.

The Abadi gas field has significant potential for carbon dioxide storage, estimated at up to 1.2 gigatons with an injection capacity of 80 million tons. Inpex, along with Pertamina and Petronas as operators of this field, have designated the Abadi Masela project as a CCS Hub. Inpex and its partners will proceed with operations in the Masela Block, including preparing the Front-End Engineering Design (FEED). Inpex, Pertamina, and Petronas will execute the project to reach the Final Investment Decision (FID) and commence initial production.

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