Overview

One of the most recent trends to have emerged as the globe seeks to transition to a low-carbon future and tackle the ongoing effects of climate change while achieving the global target of Net Zero Emission (“NZE”) involves the application of Carbon Capture and Storage (“CCS”) technologies. In simple terms, CCS involves the capture of carbon dioxide, either deriving from fossil fuels or combustion waste, which is subsequently stored underground.[1] While Indonesia’s CCS potential remains a subject of study and debate, the Minister of Energy and Mineral Resources (“Minister”) has affirmed that the organization of CCS will be one of the main instruments that will be utilized in order to achieve the country’s NZE target by 2060 or sooner.[2] In this regard, CCS implementation may ultimately increase levels of oil-and-gas production via the CO₂ Enhanced Oil Recovery (EOR) or Enhanced Gas Recovery (EGR) methods that work to simultaneously reduce greenhouse gas emissions (“GHG Emissions”) in line with production.[3]

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