Strengthening Commitment Towards Net Zero Emissions: PHE Signs Carbon Capture Agreement with ExxonMobil

• 12 Jul 2024
• mk.novian.kusmana

Jakarta - PT Pertamina Hulu Energi (PHE), as Pertamina's Upstream Subholding, is proactively seeking cooperation opportunities to enhance performance and business sustainability. During the 48th Indonesia Petroleum Association Convention and Exhibition (IPA CONVEX) at ICE BSD City, PHE signed a pre-Liminary Agreement with ExxonMobil.

The signing was conducted by Egon van der Hoeven, Senior Vice President of Business Development ExxonMobil Indonesia, and Awang Lazuardi, Director of Development & Production, on May 15, 2024. The event was witnessed by Nicke Widyawati, President Director of PT Pertamina (Persero), Irtiza Sayyed, President of ExxonMobil Low Carbon Solutions Asia Pacific, and Carole Gall, President of ExxonMobil Indonesia.

This agreement is derived from the Head of Agreement (HoA) between ExxonMobil, Pertamina, and PHE, signed in 2022. Through this cooperation, PHE and ExxonMobil will prepare a commercial model design for developing a regional CCS/CCUS hub in PT Pertamina Hulu Energi Offshore South-East Sumatra (PHE OSES). This hub aims to store domestic and international CO2 through the Asri Basin Project CCS Hub in the PHE OSES operational area.

"As part of the ongoing joint study, PHE and ExxonMobil (Esso Indonesia) will conduct appraisal drilling to collect data for the CCS Hub Asri Basin development," explained Awang.

This agreement includes preliminary activities before the appraisal well drilling. Previously, a joint study by Pertamina and ExxonMobil discovered CO2 storage potential with a capacity of up to 3 gigatons in Pertamina's oil and gas fields, with an investment value of up to USD 2 billion. This capacity can store CO2 emissions from all over Indonesia at the current average rate for up to 16 years.

The development of the Asri Basin CCS Hub with ExxonMobil represents significant CO2 storage potential and a new business opportunity in the Decarbonization program in Southeast Asia. This partnership aims to reduce carbon emissions while supporting economic growth through investments, job creation, and increasing national revenue.

"CCS/CCUS technology is a new trend in facing the energy transition to achieve the global Net Zero Emission (NZE) target. With a spirit of togetherness in facing the challenges, the CCS/CCUS implementation in Indonesia is believed to support increased oil and gas production while reducing greenhouse gas (GHG) emissions," Awang emphasized.

The development of CCS/CCUS technology aligns with Pertamina's commitment to implementing Environmental, Social, & Governance (ESG) principles across all business lines to promote future business sustainability.
 

Share: