COMPARISON OF ECONOMIC EVALUATION USING PSC COST RECOVERY AND GROSS SPLIT SCHEME FOR ALLOCATION OF NATUNA CO2 PRODUCTION UTILIZATION

• Main Author: MULIANDARI, WINDA
• Format: Theses
• Language: Indonesia
• Subjects: Pertambangan dan operasi berkaitan
• Online Access: https://digilib.itb.ac.id/gdl/view/31642
• Institution: Institut Teknologi Bandung

East Natuna Gas Field is the largest gas field in Indonesia with estimated gas in placed 222 TSCF (consisting of 71% CO2, 24% CH4, and non-hydrocarbon gas). The optimum flow rate from this field is 8 BSCFD (2.16 BSCFD clean gas), with 32 years of production time. Total CO2 cumulative procuction from East Natuna for 32 years is 68.211 BSCF. The strategy allocation of CO2 production is needed in order to utilized effectively and efficiently. Also, the concept of project management need to be applied, so the quality of this project becomes better both in terms of time and cost efficiency. Total CO2 cumulative procuction from East Natuna for 32 years is 68.211 BSCF, that can be allocated for CSSU in East Natuna Basin 16% (10.700 BSCF), CO2-EOR in Sumatera 26% (17.834 BSCF), and for industry 58% (39.677 BSCF). <br /> <br /> <br /> Time estimation for this project is 61 years, that will be divided into four phases. First phase is construction (4 years), second phase is drilling in East Natuna offshore (7 years), third phase is EOR process in Sumatera (32 years), and the fourth phase is CSSU in East Natuna Basin (50 years). The entire of CO2 distribution process will be distributed using pipeline. Investment cost for development of Natuna field is 4.073 MMUSD, investment cost for EOR in Sumatera is 3.539 MMUSD, and investment cost for CSSU method in East Natuna Basin is 530,51. Total investment cost for project allocation Natuna CO2 production is 8.539 MMUSD. <br /> <br /> <br /> Economic evaluation is conducted under two schemes of Petroleum Agreement (PSC Cost Recovery and PSC Gross Split). In result, Natuna Field deserves to be developed, both of two schemes give a positif value of NPV contractor 10%, 5.060 MMUSD (IRR 34%, POT 10 years) for PSC Cost Recovery and 9.565 MMUSD (IRR 42%, POT 11 years) for Gross Split. The purpose of CO2 sensitivty allocation Is to determine the feasibility of a project and also for future project development. Gross Split scheme will give higher NPV and IRR than Cost Recovery. In this case, Gross Split scheme is economically more attractive than Cost Recovery. However, risk factor and uncertainty from Gross Split will become a significant obstacle