Bakrie's Oil And Gas Company Announces CCS Project Development Plan At Arun Field

Refinery illustration (Photo: antara)

Oil and gas issuers belonging to the Bakrie Group, PT Energi Mega Persada Tbk (ENRG) together with its subsidiary, PT Pemap Global Energi announced plans to develop Carbon Capture and Storage (CCS) and/or Carbon Capture, Utilization and Storage (CCUS) projects in Arun Field, Aceh Province.

ENRG President Director & CEO Syailendra S. Bakrie said in his statement that Arun Field is considered one of the most potential CCS locations in Southeast Asia, with a carbon storage capacity of nearly 16 trillion cubic feet (TCF). With production history from 1978 and output peaks of up to 2,500 MMSCFD. On the other hand, this location has infrastructure and geological conditions that are very supportive for the development of large-scale decarbonization technology.

"As a first step, the Company and PGE will conduct a comprehensive feasibility study by forming an internal technical team and appointing an experienced independent consultant," said Syailendra, Wednesday, March 26.

He added that this study is targeted for completion in 2026, and will follow all applicable relevant regulations, including the Regulation of the Minister of Energy and Mineral Resources (Permen ESDM) No. 2 of 2023.

To ensure the continuity and success of this program, the Company will also form a special Carbon Management division, which will handle the development of CCS/CCUS projects in all areas of the Company's work.

"This revision will be a catalyst in creating new opportunities through the Carbon Infrastructure & Offset Services (CIOS) initiative, as part of the company's long-term roadmap in supporting integrated energy transitions and carbon management," he continued.

Despite developing new initiatives in the field of decarbonization, Syilendra emphasized that the Company's main focus remains on the upstream oil and gas (upstream) sector, which is at the core of a long-term growth strategy.

"The company sees CCS and CCUS not only as an important step in supporting reducing carbon emissions and overcoming climate change, but also as an opportunity to create real added value for shareholders," he said.