Pertamina Cooperates with ExxonMobil to Study CCUS Technology Application in Three Oil and Gas Field Areas

Jakarta, May 14, 2022 - As a world-class energy company, Pertamina continues to develop its business by cooperating with global partners. As an embodiment of Go Global, Pertamina collaborated with the world energy company, ExxonMobil, to study Carbon Capture & Storage (CCS) and Carbon Capture, Utilization & Storage (CCUS) technologies application in three oil and gas fields. The three areas include the West Java Area (Widuri Field) and the East Kalimantan Area (Peciko and Badak).

The cooperation agreement between Pertamina and ExxonMobil was realized through a Joint Study Agreement (JSA) as a follow-up to the MOU signed by both parties at COP 26 last year in Glasgow. The JSA was signed by President Director of Pertamina, Nicke Widyawati, and President of ExxonMobil Indonesia, Irtiza H. Sayyed, in the United States on Friday, May 13, 2022. The signing was witnessed by the Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, and the Ambassador of the Republic of Indonesia to the United States, Rosan Roeslani.

The Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Panjaitan, said that this collaboration is a very simple answer to some developed countries who were hesitant to look at developing countries like Indonesia, in making policies related to climate change issues.

“We are carefully watching this one, the depleted reservoir is a very important problem as one of our targets because the integrated industry in Kalimantan uses a depleted reservoir somewhere in East Kalimantan so we can inject it into a depleted reservoir," said Luhut.

Luhut said the government will support Pertamina and ExxonMobil to invest by preparing everything needed. So far, ExxonMobil has proven itself with decades of investment in Indonesia and the Indonesian government is ready to welcome more investment.

Meanwhile, President Director of Pertamina, Nicke Widyawati, said as an energy state-owned company, Pertamina is committed to supporting the government's program to accelerate the energy transition and achieve the emission reduction target of 29 percent by 2030. Pertamina supports the government's targets of realizing Indonesia's Net Zero Emission through various initiatives carried out by the company.

"The Carbon Capture & Storage (CCS) and Carbon Capture, Utilization & Storage (CCUS) technologies application becomes an important initiative to promote global trend of decarbonization as well as a solution for Enhance Oil/Gas Recovery (EOR/EGR) technology application to increase the oil and gas production," said Nicke.

The application of CCS and CCUS technology, added Nicke, is expected to play an essential role in reducing greenhouse gases in the atmosphere, contributing to global warming, climate change, ocean acidification, and loss of biodiversity.

"The energy sector does contribute the most to GHG emissions, so the transition to sustainable energy is the most pressing challenge we face today," added Nicke.

Nicke also hopes that the signing of the Joint Study Agreement (JSA) between PT Pertamina (Persero) and ExxonMobil can examine in-depth CCS & CCUS technology applications in South Sumatra, East Kalimantan, and West Java.

Nicke added that currently, Indonesia holds the G20 Presidency while prioritizing the transition to sustainable energy as one of the main issues. As stated by President Joko Widodo at the G20 Summit in Italy late last year, G20 member countries and business actors must be a catalyst for green recovery and work hand-in-dhand with the principles of energy security, accessibility, and affordability.

On the occasion, President of ExxonMobil Low Carbon Solutions, Joe Blommaert emphasized, "This is another step forward for the two companies and positions Indonesia as a potential CCS Hub for Southeast Asia and plays a major role in supporting emission reductions from sectors that are difficult to remove carbon," he said.

The Pertamina-ExxonMobil cooperation agreement will last for two years. In this collaboration, it is possible to establish regional CCS/CCUS Center storage and discover upgraded oil and gas recovery areas and blue hydrogen generators.

"The development of CCS & CCUS technology is in line with Pertamina's commitment to implement Environment, Sustainability, & Governance (ESG) in all lines of the company's business, to encourage business sustainability in the future," said Nicke.**