GAS FLARING / FUGITIVE EMISSIONS REDUCTION … International Jabung Ltd. Jambi; 3. PT Pertamina EP...

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© 060808 Jakarta, Jakarta, 6 Februari 2012 6 Februari 2012 MINISTRY OF ENERGY AND MINERAL RESOURCES MINISTRY OF ENERGY AND MINERAL RESOURCES DIRECTORATE GENERAL OF OIL AND GAS DIRECTORATE GENERAL OF OIL AND GAS GAS FLARING / FUGITIVE EMISSIONS REDUCTION GAS FLARING / FUGITIVE EMISSIONS REDUCTION IN NATURAL GAS PRODUCTION IN NATURAL GAS PRODUCTION By: By: Directorate of Engineering and Environment Safety Directorate of Engineering and Environment Safety

Transcript of GAS FLARING / FUGITIVE EMISSIONS REDUCTION … International Jabung Ltd. Jambi; 3. PT Pertamina EP...

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© 060808Jakarta,Jakarta, 6 Februari 20126 Februari 2012

MINISTRY OF ENERGY AND MINERAL RESOURCESMINISTRY OF ENERGY AND MINERAL RESOURCESDIRECTORATE GENERAL OF OIL AND GASDIRECTORATE GENERAL OF OIL AND GAS

GAS FLARING / FUGITIVE EMISSIONS REDUCTIONGAS FLARING / FUGITIVE EMISSIONS REDUCTIONIN NATURAL GAS PRODUCTIONIN NATURAL GAS PRODUCTION

By:By:Directorate of Engineering and Environment SafetyDirectorate of Engineering and Environment Safety

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OUTLINEOlL AND GAS ACTIVITY

ROLE OF OIL AND GAS INDUSTRIES

TARGETS FOR 2025

FLARING AND VENTING IN INDONESIA

REGULATORY FRAMEWORK FOR GAS FLARING REDUCTION

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Presenter�
Presentation Notes�
I have divided my presentation into five sections. I’d like firstly to talk about the role of oil and gas industries in Indonesia. In Indonesia, Oil and gas are as strategic non-renewable natural resources which are controlled by the State and constitute vital commodities that control the livelihood of the people at large and so play important role in the national economy. Therefore, their management should be able to provide the maximum prosperity and welfare for the people. My second part will concern the delegation in the oil and gas authorities scheme. In the third part, I deal with Oil and Gas Regulatory Framework in Indonesia. The fourth part of my talk will concern the current condition of oil and gas in upstream and downstream sector. And finally, allow me to raise the issues of the investment opportunities as the main subject in my presentation. �
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Flare

Air Emission

FWKO 

TANK WASH TANK SHIPPING

TANK

Production wells

Gas

Oil

Separation facility

Oil Tankers & LPG

Drilling

Seismic

Refinery

Flare

Filling Station 

Air Emission

Air Emission

Air

Em

issi

on

Industry

TransportasiRumah Tangga

Householdelectricity Transportation

CO2

Removal

H2

SRemoval

OIL AND GAS ACTIVITY

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ROLE OF OIL AND GAS INDUSTRIES

ROLE OF OIL AND GAS INDUSTRIES

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ROLE OF OIL AND GAS FOR NATIONAL DEVELOPMENT

High TechnologyHigh Technology

High CostHigh Cost

High RiskHigh Risk

Sustainable National

Development

OIL &GAS INDUSTRY OIL &GAS OIL &GAS INDUSTRY INDUSTRY

FULFILL DOMESTIC FUEL DEMAND

CREATING MULTIPLIER

EFFECTS

SOURCE OF STATE REVENUE

INDUSTRIAL RAWMATERIAL

RESOURCES

Presenter�
Presentation Notes�
In Indonesia, oil and gas are as strategic non-renewable natural resources which are controlled by the State and constitute vital commodities that control the livelihood of the people at large and so play important role in the national economy. Therefore, their management should be able to provide the maximum prosperity and welfare for the people. �
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TARGETS FOR 2025TARGETS FOR 2025

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Maintain oil production level of 1 Million BOPD

50% national operatorship

Security of domestic Fuel Supply and Industrial Feedstock

91% local content (goods and services)

99% skilled national worker

Achieving oil and gas safety, zero accidents, zero failure, and achievement of zero flares, and zero waste

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TARGETS FOR 2025TARGETS FOR 2025

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FLARING AND VENTING IN INDONESIA

FLARING AND VENTING IN INDONESIA

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FLARING AND VENTING IN INDONESIA (Based on Global Gas Flaring Reduction Study)

1. Gas Flaring in 2009: 364 MMSCFD (GGFR Study)2. Equivalent to ~10 MMTCO2 e 3. Equal or greater amount of CO2 directly vented during gas

processing

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MAP OF GAS FLARE IN INDONESIA

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SPREAD OF FLARE GASSPREAD OF FLARE GAS

No PSC Field AreaFlowrat

(BBTUD)

1Petrochina International Jabung Ltd.

South West and 

West Betara

Jambi14.5 

ramp 

down 7

2 Petrochina International Jabung Ltd. Jambi

3 PT Pertamina EP Region West Java West Java 2

4 PT Pertamina EP Region West Java West Java 0,7

5 PT Pertamina EP Region West Java Kandanghaur West Java 0,7

6 PT Pertamina EP Region West Java Pegaden West Java 0,5

7Kodeco Energy Co. Ltd

Madura Strait ‐

Gresik

Madura Block2,48123

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8 PT Pertamina Hulu Energi Tuban East Java Mudi Bojonegoro,  17

9PT Pertamina Hulu Energi Tuban East Java Lengowangi 

Tuban, East 

Java Province

5

10 PT Pertamina Hulu Energi Salawati Salawati Sorong, Papua 4‐5

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REGULATORY FRAMEWORK FOR GAS FLARING REDUCTION

REGULATORY FRAMEWORK FOR GAS FLARING REDUCTION

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- FLARING AND VENTING MANAGEMENT PRINCIPLES - REGULATORY AGENCY - STAKEHOLDER CONSULTATIVE COMMITTEE

- TECHNOLOGY SELECTION - LIMITATIONS ON GAS FLARING - FLARING PERMITS - MANDATORY REQUIREMENTS FOR FLARED GAS REDUCTION - INCENTIVES FOR PROJECT DEVELOPMENT - MEASUREMENT, MONITORING AND REPORTING

Government Private sector

DG MIGAS (Chair)BP MIGASLEMIGASMinistries of Finance and EnvironmentBAPPENAS

Representatives of upstream oil and gas operators (selected by IPA)Representatives of major gas users

REGULATORY FRAMEWORK FOR GAS FLARING REDUCTION

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Offshore/Onshore Flare Gas1. For all PSC, TAC and JOB• Economically and Financially Feasible

– Gas sales and utilization:• Direct sales to commercial customers• LNG• Re-injection in pipeline• Re-injection for EOR : Gas Lift

Economically and Financially Feasible with Intervention– Need stimulation such as incentive – Provide infrastructure by goverment

2. DOWNSTREAM SIDEThe numbers of gas flare is not significant from these activity that maximize own use is the best way in troubleshooting gas flare reduction.

CHALLENGES – BREAKTROUGH

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ACTION PLAN IN 2012 ACTION PLAN IN 2012

PRESIDENT‘S DELIVERY UNIT FOR DEVELOPMENT MONITORING AND OVERSIGHT (UKP4) ASIGN TO MEMR :•TO EXERCISE GAS FLARING REDUCTION IN PERTAMINA’S FIELD AS PILOT PROJECT.•TO PROVIDE A MINISTRIAL DECREE REGARDING GAS FLARING REDUCTION.

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