Commitment to Net Zero Emission, PHE Explores the Geological Hydrogen Exploration Potential in Indonesia

Bandung, May 11, 2024 - PT Pertamina Hulu Energi (PHE), Pertamina's Upstream Subholding, continues to pursue various innovations and developments in the exploration field as part of the company's efforts to enhance its performance in maintaining national energy resilience. As of March 2024, PHE has recorded the completion of drilling activities for three exploration wells, 163 development wells, 219 workovers, and 8,323 well services. Additionally, PHE has conducted 2D seismic surveys covering 12 km and 3D surveys covering 2,602 km2. PHE has achieved a total 2C resource discovery of 140 million Barrels of Oil Equivalent (MMBOE) in the exploration field.

Currently, PHE, through the New Venture Function, seeks to develop the exploration potential for Geological Hydrogen in the Eastern region of Indonesia. Collaborating with the Faculty of Exploration and Production Technology at Universitas Pertamina and in cooperation with the Geological Survey Center of the Ministry of Energy and Mineral Resources (ESDM), PHE has initiated the implementation of a Geological & Geophysical (G&G) study on the potential of Geological Hydrogen in the East Sulawesi Ophiolite through a kick-off meeting for Geological Hydrogen exploration studies, also known as Natural Hydrogen, in the Sulawesi Ophiolite region, in Bandung city on Monday (06/05).

Present at this event were Vice President of New Venture PHE, Bintoro Wibowo, Prof. Dr. Ir. Eddy Ariyono Subroto from Universitas Pertamina, and representatives from the Geological Survey Center of the Ministry of Energy and Mineral Resources (ESDM) of the Republic of Indonesia.

The Geological & Geophysical study on the potential of Geological Hydrogen is motivated by PHE's preparation for "clean energy exploration" supported by recent research from the Geological Survey Center (PSG) in the East Sulawesi Ophiolite area, which successfully identified the presence of Geological Hydrogen through gas seepage at Tanjung Api and Hot Spring Bahodopi along the Matano Fault.

This study also supports PHE's vision and mission, along with the company's roadmap for Emission Reduction for 2025-2034 and PHE's Sustainability Policy to become an environmentally friendly company that provides access to energy and supports green energy to facilitate the national climate transition agenda.

In his address, VP of New Venture PHE, Bintoro Wibowo, expressed that the exploration to discover Geological/Natural Hydrogen will be one of Pertamina's hopes for greener and cleaner energy, and Pertamina welcomes research or opportunities or cooperation with all parties, especially academia, researchers, and other stakeholders.

"We are talking about the future; this will become the flagship energy for the world towards the Geological Hydrogen decade and net zero emission. We entrust Universitas Pertamina to lead the first study we will conduct at PHE to assess the potential of Geological Hydrogen, and this involves a wide range of expertise, from geological mapping, surveys, geochemical data collection, geophysical data collection, which are very complex and comprehensive. We hope that this study will be the first step for PHE and Indonesia to realize our efforts to explore and seek clean energy sources in the future," Bintoro Wibowo said.

Prof. Ir. Eddy Ariyono Subroto, representing Universitas Pertamina, expressed gratitude to PHE for entrusting Universitas Pertamina to lead the study on the potential of Geological Hydrogen. "We appreciate the trust of team to conduct this study. When we gathered the team, some said it was a challenge, but we were confident. So, we must work with enthusiasm and sincerity," Prof. Eddy said.

Ruly Setiawan, a researcher from the Geological Survey Center of the Ministry of Energy and Mineral Resources, expressed appreciation for Pertamina's initiative to explore the potential of Geological Hydrogen in Indonesia. "Some time ago, we, and our PHE colleagues, intensively discussed plans to uncover Geological Hydrogen or natural Hydrogen, especially in the Sulawesi region.  It seems like we have stumbled upon a stroke of luck, as perhaps we have not fully recognized the potential of Geological Hydrogen until now. Hopefully, the future holds promise. Hopefully, the future holds promise. We can collaborate so that we can each play our respective roles. From the government's perspective, according to our duties and functions, we provide data related to Geological Hydrogen exploration and other upstream oil and gas activities," he explained.

Following up on the Kick-Off Meeting in the same venue, a two-day Focus Group Discussion (FGD) was held on Tuesday and Wednesday (07-08/05), attended by PHE officers from both headquarters and regions, as well as various stakeholders, including academia from universities (ITB, Unpad, UGM, Uper, Unhas), government bodies (ESDM, DEN, BRIN, Pusdatin, BBSPGL, BBPMGB LEMIGAS), industry representatives (Schlumberger), and professional associations (IAGI, HAGI), to collectively formulate and explore technical and policy aspects applied to Geological Hydrogen exploration.

Muharram Jaya Panguriseng, Director of Exploration at PHE, who had the opportunity to attend the FGD discussing the Geological Hydrogen concept in Indonesia, stated that PHE, through its motto, Explore the Potential, pursues to assess the Hydrogen's potential to ensure PHE continually safeguards national energy resilience.

"Energy resilience is important; one of our resilience keys is to become direct energy producers. We also need to play strategies; understanding geopolitics is necessary to organize our business to remain sustainable. Referring to that, Net Zero Emission is essential, and Hydrogen is one of the intriguing answers for the future. It is a challenge for all of us. Therefore, I hope we take definite steps to start exploring Hydrogen," Muharram emphasized.

During his presentation, Dr. Eng. Deni Shidqi Khaerudini, Senior Expert Researcher in Hydrogen Technology at the National Research and Innovation Agency (BRIN), stated that Geological Hydrogen is a hydrogen source from beneath the surface of the earth stored within rocks. "There are four types of Geological Hydrogen: White/natural Hydrogen, Gold Hydrogen, Orange Hydrogen, and Aqua Hydrogen. All these types of Geological Hydrogen are closely related to geology and require rock understanding and geological knowledge to conduct exploration and exploitation. And with PHE's capabilities and experience in oil and gas exploration, it can certainly explore Geological Hydrogen in Indonesia and even abroad," he added.

The National Energy Council (DEN) stated its full support, represented by Dr. Ir. Musri Ma’waleda MT, who said that Geological Hydrogen is a clean energy source and has been in the national energy mix plan. "Geological Hydrogen exploration is closely related to oil and gas exploration activities, so PHE is worthy of leading Geological Hydrogen exploration and exploitation activities in Indonesia. The National Energy Council fully supports PHE's steps and efforts for achieving national energy resilience based on environmentally friendly energy," he stated.

PHE will continue to invest in managing upstream oil and gas operations in line with Environmental, Social, and Governance (ESG) principles. PHE has been registered with the United Nations Global Compact ("UNGC") as a member since June 2022. PHE is committed to the Ten Universal Principles or Ten Principles of the UNGC in its strategies and operations as part of the ESG aspects implementation. In support of Governance aspects, PHE also consistently commits to Zero Tolerance for Bribery by ensuring fraud prevention measures are taken and ensuring the company remains free from bribery. One of these measures is the implementation of the Anti-Bribery Management System (SMAP), which is standardized to ISO 37001:2016.

PHE continues to develop prudent and excellent operations management both domestically and internationally in a professional manner to achieve becoming a world-class-environmentally friendly, socially responsible, and well-governed oil and gas company.

Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**

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