One of the pending problems was provision of land for CO2 gas injections, Muhammad Husen, Pertamina`s upstream operations director, said here Tuesday.
"In essence, the government already knows how to settle the pending issues and therefore we are optimistic the contact can be mutually agreed on by October 28, 2011," Husen said after a fast breaking dinner with newsmen.
He said development of the East Natuna Block required special treatment from the government due to the CO2 content in the field which reached 71 percent.
The CO2 content must be reinjected into the ground so that it will not pollute the environment, he said.
Referring to East Natuna gas reserve estimates of around 40 trillion cubic feet, he said the CO2 that had to be reinjected into the ground was equal to 30 trillion cubic feet.
"The CO2 content figure is huge so that the land needed for the injection work reaches twice the area for gas extraction," he said.
Considering these characteristics of the block, Pertamina had proposed a contract period of more than 30 years. A long contract period was needed to compensate for the long period of development before production begins.
Husen estimated an investment of up to US$20 billion would be needed to develop the East Natuna block. "Most of the funds would be for CO2 injection processing," he said.
Pertamina on August 19,2011 signed Principles of Agreement with Exxonmobil, Petronas Malaysia and Total Indonesie on plans to explore and exploit the East Natuna block.
The agreements were for continuing preparations for the signing of a cooperation contract to develop the East Natuna block.
The East Natuna Block has a gas reserve of 46 trillion cubic feet with its CO2 content reaching 71 percent.
It would take 6-10 years to develop the block. A long lag time between the effective date and production time was needed as well as technology for the aquifer study of CO2 gas waste which was to be reinjected into the rocks.
The East Natuna development project is part of efforts to support energy resilience and ensure domestic gas supply.
(Uu.H-YH/HAJM/A014)
Editor: Priyambodo RH
Copyright © ANTARA 2011
