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Associated gas which is produced in oil production facilities usually is being flared or vented because of safety and operational reasons. In this research, associated gas is handled by being flared. This flaring process generates CO2 and other greenhouse gas (GHG) emissions that should be reduced, due to the issue of global warming. One of reduction activities is converting the associated gas before being flared to other fuel through utilization technology. The potential of associated gas at real condition is estimated by simulating data from laboratory (Gas Chromatography, GC) using HYSYS. Several technologies are considered for the utilization of associated gas potential, namely condensate production plant, mini Liquefied Petroleum Gas (LPG) plant, condensate recovery, sweetening process to produce fuel gas for turbine gas line, methane recovery, etc. These technologies are screened by consideration of potential sources and characteristics, potential demand and economic feasibility so that the condensate recovery and fuel gas for turbine gas line, are considered to be applied for associated gas utilization. The gas flared reduction through associated gas utilization can be considered under CDM scheme by additionally testing of CDM. The selected utilization technology which is not economic feasible can be proposed as CDM project so that it will turn into economical feasible because of CER contribution. This economic feasibility is not changed due to the CER prices changed (sensitivity analysis). However, none of the selected technologies align with technical and institutional barriers. The other barrier is the CER claim can not be conducted by oil company as project proponent due to MIGAS regulation. But the project still can be applied under CDM through programmatic CDM whereby government programmed the effort of gas flared reduction. This activity can be applied as programmatic CDM because the gas flared reduction through associated gas utilization is supporting government regulation on energy sector. One of its policy is the utilization of gas flared which is stated in Blue Print Pengelolaan Energi Nasional 2005-2025.