These preparations include efforts to immediately implement Carbon Capture Storage (CCS)/Carbon Capture Utilization and Storage (CCUS) technology, which was discussed in depth at the 2023 Indonesia Petroleum Association (IPA) Convention and Exhibition (Convex) this past week. The three-day event opened on July 25 and concluded on Thursday.

Nanang Abdul Manaf, deputy head of the Special Task Force for Upstream Oil and Gas Activities (SKK Migas), said there was tremendous enthusiasm among all parties to ensure that the oil and gas industry is still able to meet national energy needs. Expressing his appreciation for all stakeholders in Indonesia for their willingness to meet the demands of the people, he also touched upon the implementation of CCS/CCUS in the discussion.

"CCS/CCUS is the prima donna project for the most possible solution, the government has issued Energy and Mineral Resources Ministry Regulation No. 2/2023 concerning the implementation of CCS/CCUS in the upstream oil and gas sector. Currently the government is preparing a presidential decree, SKK Migas is preparing the procedures, the government is serious about implementing the CCS CCUS project in Indonesia," said Nanang. With that in mind, the CCS/CCUS development cooperation was held on the sidelines of the event.

Greg Holman, vice president of IPA, stated that the three-day event provided a clear perspective on how all stakeholders, from the government to business actors, share the same opinion that the upstream oil and gas industry plays a key role in the energy transition era.

"The government is expected to immediately issue an energy transition road map, as well as regulatory support that is in line with the development plan for the upstream oil and gas industry," said Holman.

Moreover, the event also highlighted the need for a “white paper” providing input for the government regarding what should be outlined on the first day of the IPA Convex. The white paper was prepared in a comprehensive manner because it involved all upstream oil and gas business actors in the country and was prepared by Wood Mackenzie to be submitted to the Energy and Mineral Resources Ministry.

"We hope that the white paper will be able to provide answers and recommendations that can be followed up on the focus mentioned in this year's IP Convex theme, namely attracting investment and energy transition for energy security," explained Holman.

Meanwhile, at the closing of IPA Convex 2023, the government also announced the winners of the oil and gas block auction offered by the government in the phase I block auction. Noor Arifin Muhammad, director of upstream oil and gas development at the energy ministry, said the announcement of this auction showed that improvements in the investment climate were starting to be seen. If the trend continues, Arifin is hopeful that it will result in an increase in investment.

The consortium Armada Etan Ltd. and Pexco Tarakan NV came out victorious as the winners of this year's first oil and gas block for the Akia block located in Offshore North Kalimantan. The Akia block has potential reserves of 2 billion barrels of oil (BBO) and 9 trillion cubic feet (TCF) of gas. The Akia block will be managed using a cost recovery contract scheme, with a signature bonus of US$500,000 and total commitment of $7.7 million.

Meanwhile, Beluga at West Natuna Offshore was won by PT Medco Energi Linggau, which will use a cost recovery contract and has potential reserves of 360 million barrels of oil equivalent (MMBOE) of oil and 50 billion cubic feet (BCF) of gas. A signature bonus of $100,000 and a total agreed firm commitment of $8 million were also confirmed.

Bengara I was won by Texcal Mahato EP FZCO, which has a potential reserve of 91 MMBOE and is a cost recovery contract. The total firm commitment agreed with the government is $6.5 million.

The government is also still offering three oil and gas blocks, namely Natuna D-Alpha with potential reserves of 350 MMBO and 230 TCF of gas. This block does have a high CO2 content, but has a large potential for CO2 storage. This is in addition to the still available Panai and Patin blocks, with an estimated reserve potential of around 500 BCF and 1.2 BBO respectively.

Krishna Ismaputra, head of the IPA Convex 2023 Committee, also revealed that this year’s IPA Convex also witnessed the signing of the transfer of participating interest (PI) for the Masela block from Shell to Pertamina and Petronas.

Based on data from the organizers of the event, IPA Convex 2023 was attended by around 21,422 visitors. This number included 132 companies and 1,274 student delegates and 2,276 convention delegates from 22 countries. IPA Convex was also covered by around 254 journalists from 153 media outlets.

The event held four plenary sessions and four focus group discussions involving 24 speakers, seven moderators, two presenters, eight panelists and five responders. Meanwhile, the Science Technical Program (TPC) presented 45 presentations in the form of posters, 42 oral presentations and eight Core Workshops.

IPA Convex 2023 was held in collaboration with the IPA as organizer and Dyandra Promosindo as co-organizer. Convex IPA cannot be separated from the support of a number of partners and sponsors, including, PT Pertamina Hulu Energi as the Titanium sponsor; MedcoEnergi, Elsewedy Electric, COSL, BP Indonesia, Wood Mackenzie, PETRONAS Indonesia and Exxonmobil Indonesia as Platinum sponsors; Energi Mega Persada and Mubadala Energy as Gold sponsors; and Conrad Asia Energy Ltd, Sinopec International Petroleum E&P Corporation (SIPC) Indonesia, Chevron, Harbor Energy and INPEX MASELA LTD as Silver sponsors.

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