Flaring Gas Utilization Model in Oil and Gas Company to support Clean Development Mechanism (Case Study on Oil and Gas Exploitation Field, Tugu Barat, Indramayu, West Java)

Abstract

The existence of PT. SDK as one of the peripatetic Company in oil and gas sector which work with PT. Pertamina hold important role in ready to supply gas and improvement of earning of area in home affairs. Research aim to develop model of utilization of associated gas activity of petroleum exploitation in supporting clean development mechanism in Tugu Barat oil field. Big potential of gas production in Indonesia and decreasing the production of oil as fuel production in Indonesia, make Indonesian government to change policy from utilized oil fuel to gas fuel as alternative energy a cheap and environmentally friendly. On the other hand, production of oil and gas be produced flaring gas. Based on that, need to find utilization of flaring gas modeling on oil and gas company to support clean development mechanism, such as on Tugu Barat Oil and Gas Exploitation Field, Indramayu, West Java. This research use descriptive analysis method with triangulation method, Net Present Value (NPV), Internal Rate of Return (IRR), Pay Back Period (PBP), and profitability Index Analysis with software Powersim Constructor version 2.5, Analytical Hierarchy Process (AHP) and Interpretative Structural Modeling (ISM). The analysis result indicated that flaring gas produced from Tugu Barat Field potential to processed, because profitable and could decrease global warming so that it can support clean development mechanism (CDM). Alternative policy that could develop on Tugu Barat Oil Field is process flaring gas to liquefied petroleum gas (LPG), beside profitable, it can protect environment quality to clean development mechanism (CDM). To achieve this, most influential factor is government policy and other influential factors are human resources, natural resources (flaring gas availability), funding, technology, facilities and infrastructure. Therefore to manage flaring gas on Tugu Barat Field needs government policy and high quality human resources. Flare gas industry on Tugu Barat Oil Production Field, economically good to develop. The result of West Java and Jakarta society sub model ecology , sub model simulation and economic sub model indicated the preference of positive growth curve establishment which follow exponential curve, same result indicate on migrants. But because of resource limitedness, at one time the curve go to stable equilibrium through balancing process which at dynamic system said for following archetype “limit to growth”. Alternative policy management of associated gas which need to be developed in Liquified Petroleum Gas (LPG).