Feasibility Study of CO2 Flooding under Gross-split Mechanism: Simulation Approach

Abstract

: Importance of Carbon Dioxide (CO 2 ) injection into the subsurface reservoir is essential since the concern of global warming and climate change issues in Indonesia. Selecting the oil reservoir as a candidate for a storage site is an attractive option due to CO 2 gas utilization is effective for Enhanced Oil Recovery (EOR) purpose. Continuous and Water-Alternating-Gas (WAG) CO 2 flooding are the most commonly applied scenarios in the oil and gas industries. Considering the EOR side, choosing an appropriate scenario is mandatory for cost efficiency reason and influences the oil share amount between the Indonesian Government and operator under the gross-split mechanism. Therefore, by using a simulation approach, the feasibility of continuous and WAG CO 2 injection is observed to decide the most financially attractive choice. Simulation results reveal a WAG scenario recovers slightly more oil compare to continuous injection scheme. Application of gross-split under base-share makes both injection strategies unattractive for investors. An adjustment of government-contractor share is required to improve the feasibility of the project.