Draft- For discussion Purpose Only

Progress of Joint Feasibility Study for CO2-CCS Project in Indonesia

February, 2013 PERTAMINA Marubeni Corporation Arabian Oil Company, Ltd. Mitsubishi Research Institute, Inc.

Concept of CCS/EOR

Subang Gas Field and Jatibarang Oil Field

Balongan Refinery
Pipeline

Subang Gas Field

Jatibarang Oil Field

Contents of FS
1. G&G and Reservoir Study 2. Cost estimation for Surface Facilities 3. Planning of Pilot Test 4. Investigation of seismic monitoring for CO2 storage and behavior 5. Investigation of CO2 Capture and Recovery from Refinery 6. Investigation of law and tax system for the project 7. Feasibility of the Project and Future Schedule 8. Investigation on MRV/Assessment methodology for GHG emission

G&G Study - Stratigraphy

F-Layer

Jatibarang Volcanics

(From UTC)

Seismic Re-interpretation

G&G and Reservoir Modeling Study

3D seismic re-interpretation Re-construction of geological model Reservoir simulation and future prediction for CO2 Storage

PHIE Distribution (Sequential Gaussian Simulation)

PHIE Distribution (Sequential Gaussian Simulation)

F-Layer

Volcanics-Layer

CO2 Injection, Storage and Re-Injection

Subang
CO2 Capture

Flow of CO2

CO2 from Subang

Volcanics

CO2 Recycle

CO2 Storage Volume about 11.4 x 10^6 tons/20years

CO2 storage in Volcanics

CO2 mole fraction in gas phase

Apr 2018

Jan 2038
CO2 will be stored at higher structure, will not leak beyond reservoir boundary.

Design for Surface Facilities

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Pilot Test Planning

Pilot Test will be conducted to verify the results of FS such as the increasing oil production and CO2 storage. It is essential to proceed to the next step commercial phase.
6 7 8 2013 9 10 11 12 1 2 3 4 5 2014 6 7 8 9 10 11 12 1 2 3 4 5 2015 6 7 8 9 10 11 12 1 2016 2 3

6 mon th s Pre paration EIA Re port 8 mon th s We ll Drillin g (1 Injection Well 3 Producing Wells) Fac ility Con stru c tion

8 mon th s Te st for Vo loc an ic s laye r

Well Drilling Pattern

2 mo
Work over

Injector Producer

6 mo n th s Te st for F laye r

3 mo Evalu ation

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Facilities for Pilot Test

Block Flow of CO2 CCS/EOR Pilot Test Facilities in Jatibarang Oil Field

Flow Meter

Heater

Injector

Liquid CO2 Tank Lorry

Liquid CO2 Storage Tank

Injection Pump To Flare Producer

To Existing Oil Line Liquid Transfer pump Liquid Storage Tank Test Separator

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Seismic Tomography in Pilot Test

CO2 mol Sg after Injection

Vp-change

Inverted Vp-change via Conventional-Tomography

Not inverted

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Pilot Test Operation Scheme

Investors or Partners

PERTAMINA

Marubeni Corporation

Arabian Oil Company Ltd.

Joint Venture Company or Joint Operation Scheme

Support Support

Contractor

Pilot Test

Construction

Government of INDONESIA

Government of JAPAN

CO2 EOR CCS Plant

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Location of CO2 Emission Sources

Thermal Power Plant and Refinery

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CO2 Recovery from Refinery

Based on the information and data during site survey at Balongan Refinery, we defined the flue gas sources in which CO2 can be effectively recovered. As a result, we are planning to recover CO2 in flue gas emitted from the following equipment. - Furnace upstream of the atmospheric distillation unit - Hydrogen production unit - Boilers We are investigating the most suitable process to recover CO2 emitted from above equipment and the number of trains of CO2 recovery unit to be installed.

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Project Future Schedule

Preliminary FS (for F layer)
(2010-2011 METI FS)

Secondary FS (for F and V layers) (2011-2012 NEDO FS)

Third FS (Reservoir Study, Pilot Test Planning, CO2 Capture from Refinery and CO2 Monitoring by Seismic methods) Pilot Test
2013-2015

2012-2013 NEDO FS

- Test well drilling and Facilities construction

Facility Construction and Well Drilling Start CO2 EOR/CCS

- Commercial Facility and Pipeline Construction - New Well Drilling for Jatibarang field

2016-2018

- Increase Crude Oil and Decrease CO2 Emission

2018

Apply CO2 EOR/CCS to other oil and gas fields

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Proposed CCS Methodology under the JCM

CMP7 adopted the modalities and procedures for CCS in CDM (here in after CCS CDM M&P). Appendix B of CCS CDM M&P provides Additional requirements for CCS under the CDM including followings,
Site characterization with numerical three-dimensional static earth model Risk and safety assessment and management Detection and estimation of the CO2 seepage

The proposed methodology defines specific methods regarding these requirements. Major reference documents;
CCS CDM M&P(CMP7) IPCC Special Report for CCS Past proposed CDM methodologies Best practice manuals by European commission Best practice manuals by US NETL Guidelines and latest practice by Japanese Government

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Eligibility Criteria

Criteria Criterion 1 Criterion 2 Criterion 3 Criterion 4 Criterion 5 Criterion 6 Criterion 7

References

The project shall capture, collect and store anthropogenic CO2, IPCC SRCCS such as CO2 separated from gas/oil production or CO2 emissions from fossil-fired power plants. The project shall have CO2 injection into oil/gas field or aquifer (including enhanced recovery of oil and gas). CO2 capture and storage shall be implemented in Indonesia. Besides, the selected storage site shall not be located in international waters. Storage formation shall not be utilized in other projects. Storage site shall not be suitable for potable water supply. Storage site shall be selected appropriately by monitored data and CO2 injection simulation with numerical threedimensional static earth model (See following slide) Under the proposed or actual conditions of use, no significant risk of seepage or risk to human health or the environment exists(See following slide) CCS CDM M&P (CMP7)

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Eligibility Criteria - criterion 6

Characterization of the geological storage site
Characterization with individual monitoring results
Extracted from Best Practice for the Storage of CO2 in Saline Aquifers: Observations and Guidelines from the SACS and CO2STORE Projects. Parameters Storage formation Depth Thickness Average Porosity Average Permeability Cap rock formation Thickness >800m >10m >10% >10mD >20m Criteria

Characterization with 3D dimensional model simulation

Extracted from IPCC Special Report for CCS, CCS CDM M&P(CMP7) and other materials. 1. Aggregation relevant data (Geological information, Geophysical information, Geomechanical information, Geochemical information and Hydrogeological information) 2. Establishing numerical three-dimensional earth model 3. Examining that injected CO2 will be stably held in the storage site for over 1000years.

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Eligibility Criteria - criterion 7

Risk assessment and management
Risk and safety assessment
Extracted from IPCC Special Report for CCS, CCS CDM M&P(CMP7) and other materials. Risks of serious environmental and health impacts are assumed to be induced by following occasions. a. containment failure of above-ground installations b. seepage from subsurface zone c. effects of potential induced seismicity or other geological impacts The methodology defines methods to address these risks appropriately. Regarding risk b. above, it defines methods in line with IPCC Special Report for CCS (See bellow).

Potential seepage risks from subsurface zone (IPCC SR CCS)

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Project Boundary and emissions

Emission sources
CO2 rich gas Re-injected CO2

Project boundary

CO2 capture installation

Pipelin es

CO2 injection installation

dehumidification installation CO2 boosting installation CO2 capture installation CO2 separating installation

Without re-injection, installations in green dotted line are not included.

Supplied CO2

CO2 emissions from energy usage by above-ground installation CO2 in Enhanced oil/gas

Flaring installation

Flare

Carbon hydrogen Gas Oil

Gas separating installation

CO2 Seepage from storage site

Storage formation

CO2 rich oil/gas

In case of aquifer storage formation, installations in red dotted line are not included.

Emission sources CO2 emissions from Energy usage by above-ground installation CO2 in Enhanced oil/gas (In case of EOR) Storage formation

Emissions CO2 emissions from fuel and electricity usage CO2 containment failure from above-ground installation GHG emissions by flare CO2 in enhanced oil/gas CO2 Seepage from storage site

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Detection and Estimation of seepage

1. Monitoring and interpreting the CO2 Saturation Collecting information on CO2 saturation, such as seismic data, production data or well logging data. Interpreting CO2 saturation from data obtained. 2. Simulation based on the actual injection Simulating the saturation of CO2 based on actual CO2 injection, utilizing the three-dimensional model established when characterizing storage formation. 3. History matching of three-dimensional model Checking whether interpreted CO2 saturation and simulation based on the actual injection match. (If they dont match) Calibrating three-dimensional model with other monitored values. The methodology requires procedures and rationale for calibrating three-dimensional model. 4. Estimating CO2 seepage (If 3. doesnt work) Simulating injection under condition of CO2 seepage with three-dimensional model. Estimating seepage emissions

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Monitoring CO2 Saturation

CO2 saturation monitoring methods
Well logging tools (Reservoir Saturation Tool (RST), Acoustic logging) Electrical Techniques (Resistivity Contrast Survey) Seismic methods, ie Two-dimensional seismic surveys, Three/Four-dimensional seismic,VSP (Vertical Seismic Profiling), crosswell seismic tomography

CO2 saturation logging by RST (with simulated result)

Resistivity Contrast Survey

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Monitoring CO2 Saturation

Various seismic methods

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Estimation of seepage emissions

CO2 saturation simulation by three-dimensional earth model

Before injection

After injection

The three-dimensional earth model are history-matched by following parameters.

Bottom-hole pressureContinuous measurement by pressure gauge Fluid production, CO2 concentration in the fluidFluid production data, Gas chromatography Concentration of CO2 around wellsWell logging tools (Reservoir Saturation Tool (RST), Acoustic logging) Water/Oil ratio: Electrical Techniques (Resistivity Contrast Survey) Seismic data: Three/Four-dimensional seismic,VSP (Vertical Seismic Profiling), crosswell seismic tomography

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