Energy Minister Order No.2 2023 on the Utilisation of CCUS in Oil and Gas exploration

Last updated: 8 June 2023

In March 2023, the Indonesian Government under the Ministry of Energy and Mineral Resources finalised a legal and regulatory framework for the implementation of Carbon Capture, Utilization and Storage (CCUS) in oil and gas exploration and production activities. 

The framework relies on the holders of oil and gas leases to spearhead CO2 storage development and operation. Storage activities that include dedicated storage operations and those associated with enhanced hydrocarbon recovery are to be conducted within the existing lease areas, such as in depleted oil and gas fields. The framework also includes a transfer mechanism whereby the government assumes long-term monitoring, stewardship and liability following the approval of site closure. In addition, technical and legal requirements are needed to ensure safe and secure CO2 storage. 

The framework also outlines several business and economic aspects,  including the potential pathways to monetising carbon credits for the project and its partners and under what conditions under which storage operators may grant third-party access to storage facilities. 

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