Pertamina's Synergy Supports Decarbonization: PHE and PIS Sign MoU on Carbon Transport and Storage

Jakarta, September 23, 2024 – In line with PT Pertamina (Persero)’s efforts to improve performance while maintaining the nation’s energy resilience, PT Pertamina Hulu Energi (PHE), as Pertamina’s Upstream Subholding, together with PT Pertamina International Shipping (PIS), have demonstrated their support for achieving Net Zero Emissions and decarbonization through a Memorandum of Understanding (MoU).

The MoU signing took place at the Nawasena Mandiri University Building, Bank Mandiri Wijaya Kusuma Area, Jakarta. It was signed directly by President Director of PHE, Chalid Said Salim, and CEO of PIS, Yoki Firnandi, on Friday (13/09).

This MoU symbolizes the initial agreement on a partnership for liquified CO2 transportation and a receiving terminal in the carbon business development between PT Pertamina Hulu Energi and PT Pertamina International Shipping.

The MoU, witnessed by Deputy President Director of PT Pertamina (Persero), Wiko Migantoro, follows a previous Memorandum of Understanding between PT Pertamina Hulu Energi and PT Pertamina International Shipping regarding a Joint Study for Transportation and Receiving Terminal for LCO2. This collaboration allows PHE and PIS to take positions in the new CCS business, particularly in CO2 transportation and storage.

Through this MoU, PHE and PIS will synergize to explore potential cooperation in providing marine transportation using vessels to supply transport and floating storage terminals onshore and offshore for liquified CO2 in the carbon business managed by PHE and its affiliates.

"PHE continues to support Pertamina's dual growth strategy by strengthening the upstream oil and gas business to maintain national energy security while striving for decarbonization, including through the implementation of CCS/CCUS. This synergy and partnership with PT Pertamina International Shipping is expected to ensure the success of the CCS/CCUS program, which can enhance company performance and support the government's decarbonization targets," said Chalid during the event.

Meanwhile, the CEO of PIS, Yoki Firnandi, stated that this cooperation marks an important milestone for PIS in entering the carbon transport phase, one of the promising commodities of the future.

"PIS welcomes this synergy in developing the CCS/CCUS business with PHE, utilizing our prepared fleet and infrastructure. The government's regulatory support enables Pertamina Group to contribute more significantly to reducing 30% of the company's carbon emissions by 2030 while pursuing Net Zero Emission by 2060," Yoki said.

On a separate occasion, the Vice President of Corporate Communication of PT Pertamina (Persero), Fadjar Djoko Santoso, emphasized that Pertamina encourages its subsidiaries to decarbonize across all business processes.

"The company has contributed to reducing carbon emissions by 31% and will continue to see further reductions in the future," Fadjar said.

PIS's readiness for decarbonization efforts is evident in its fleet of green ships, alternative fuel use, and green terminal ownership.

This MoU underscores PHE's commitment to reducing carbon emissions while supporting economic growth through investments, job creation, and increased national revenue. Further, this collaboration will optimize national resource utilization through the synergy of PT Pertamina (Persero) subsidiaries to boost domestic investment.

Several ships from the PIS fleet have been using biofuels, and new vessels are being prepared for low-carbon alternative fuels. PIS also ensures that the green transformation continues following the Sustainable Development Goals (SDGs) and the ESG implementation across its business operations.

PHE remains committed to maintaining sustainable investment trends and Environmental, Social, and Governance (ESG) principles while prioritizing safety. PHE is dedicated to the Ten Universal Principles of the United Nations Global Compact (UNGC) in its strategy and operations as part of its ESG implementation. PHE has been registered as a participant (member) of the UNGC since June 2022.

In terms of governance, PHE also maintains a zero-tolerance Bribery policy by ensuring fraud measures are in place and maintaining a company free from bribery, including the Anti-Bribery Management System (SMAP) implementation, which is standardized according to ISO 37001:2016.

PHE continues to manage operations prudently and excellently, domestically and internationally, to become a world-class oil and gas company known for being environmentally friendly, socially responsible, and governed by good governance.

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.**