Cost Quantification of CO2 Sequestration and Utilization in S Field

This paper narrated the cost quantification of CO₂ sequestration and utilization in S Field located in the Sabah basin. CO₂ sequestration was a novel technology introduced as a counteract against global warming but received rather a cold response due to uncertainty in the costing. Thus, this paper investigated the cost required to store CO₂ permanently via EOR and permanent sequestration schemes. This paper discussed only the economics of the storage utilizing some pre-acquired data such as the storage capacity, injection amount, and oil to be recovered from the action of CO₂ injection or sequestration. The cost quantification was done by evaluating the CAPEX and OPEX of the sequestration and injection without accounting for the capturing of the CO₂ cost. The CAPEX was divided into major components of the costs, namely pipeline, platform, and drilling activities, while the OPEX was expressed as a percentage of the CAPEX. Results from the study indicated that for the case of EOR coupled with CO₂ sequestration and CO₂ sequestration alone, expenses incurred were USD 1.9 and 1.7 billion respectively, with an OPEX of USD 76 and 68 million annually. The major component of the CAPEX was derived from the cost of the pipeline, influenced by the distance from the onshore terminal to the storage site in S Field, while the major component from the OPEX was logistics and consumables, which resonated with the CAPEX findings. This study was an important step that should be taken prior to implementation of a CO₂ sequestration project in the Malaysian arena. The project provided an overview or commitment to any company that wishes to embark on a similar journey.