INVESTMENT EVALUATION OF CO2 REMOVAL PLANT CASE STUDY AT BAMBU BESAR STRUCTURE

• Main Author: Yusuf Indra Surya, Mochammad
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/70985
• Institution: Institut Teknologi Bandung

The Bambu Besar (BBS) is part of the Subang field and has 14 wells with a production of 4500 bpd and 20 MMscfd. Not all of the gas production is for sale; 5 MMscfd of gas is flaring because it has a CO2 content of 48%. The company is enthusiastic about monetizing this gas because it still has economic value and needs gas processing to meet gas sales specifications. The choice is to invest in constructing a CO2 removal plant with a 3 MMScfd capacity. The company targeted a CO2 removal plant operation in Q1 2020. Still, due to the impact of the Covid-19 pandemic, this plant was on stream in November 2021. The investment cost required for construction is 5.5 million USD, and operation costs until the end of the PSC require 6 million dollars. With this project, the company will earn gross revenue of 34.8 million USD, the company will receive 10 million USD, and the Government will receive 15 million USD. The company obtained a Net Present Value (NPV) of 3.2 million USD, with an Internal Rate of Return (IRR) of 22% and a payback period (PP) of eight years. A sensitivity analysis was carried out based on the gas price, the amount of production, and the amount of CAPEX. The most influential is the price of gas. Moreover, this is a gas monetization project that was previously flaring and polluting the environment. We converted it into profitable gas. This project is also the company's step to comply with the regulation of the Minister of Energy and Mineral Resources no 17 of 2021 concerning maximum gas flares of 2 MMScfd per field in 2023.