Pertamina, Mitsubishi sign MoU on CO2-EOR application in S. Sumatra
Monday, November 3 2014 - 04:10 AM WIB
State-owned oil and gas firm PT Pertamina has signed an MoU with Mitsubishi Heavy Industries Ltd to apply so-called CO2-enhanced oil recovery (EOR) technology in a number of South Sumatra oil fields operated by the former.
The MoU was signed by Pertamina acting President Director M. Husen, and General Manager for Business Development and ICT Solution Department at Mitsubishi Heavy Industries Takaya Watanabe on October 16.
Senior Vice President for Development and Technology at Pertamina, Gunung Sardjono explained on Monday that Mitsubishi plans to develop an SNG production in South Sumatra where the emitted CO2 could be utilized by Pertamina to be injected via EOR technology to the company?s oil fields including Abab Raja, Dewa and Pendopo to help increase production.
Gunung said that Mitsubishi plans to produce 150 mmscfd of SNG, which would be later sold to state-owned electricity firm PLN and gas distribution firm PGN.
The MoU will be followed with Joint Study Agreement (JSA), which will require about a year to complete. If the study proves that the CO2 is not feasible to be injected into the reservoir on environmental concerns, then the SNG project would not be approved by the Japanese government as the financier.
Mitsubishi has been successful in developing an SNG project in Colorado, US, producing gas, fertilizer, and CO2.
Editing by Reiner Simanjuntak