Strengthening Commitment Towards Net Zero Emission, PHE Signs Carbon Capture Agreement with ExxonMobil

Jakarta, May 15, 2024 - PT Pertamina Hulu Energi (PHE), as Pertamina's Upstream Subholding, continues to explore various cooperation opportunities with different parties to enhance the company's performance and business sustainability. This time, PHE signed a Pre-Liminary Agreement with ExxonMobil during one of the 48th Indonesia Petroleum Association Convention and Exhibition (IPA CONVEX) at the Indonesia Convention Exhibition (ICE), BSD City.

The Pre-Liminary Agreement was marked by a signing conducted by the Senior Vice President of Business Development ExxonMobil Indonesia, Egon van der Hoeven, and the Director of Development & Production, Awang Lazuardi, on Wednesday (15/05). Present to witness the signing were President Director of PT Pertamina (Persero), Nicke Widyawati, President of ExxonMobil Low Carbon Solutions Asia Pacific, Irtiza Sayyed, and President of ExxonMobil Indonesia, Carole Gall.

This Pre-Liminary Agreement is one of the derivative agreements from the Head of Agreement (HoA) between ExxonMobil - Pertamina - PHE executed in 2022.

Through the strengthening of this cooperation, PHE and ExxonMobil will refine and prepare a commercial model design for the development of a regional CCS/CCUS hub in the operational area of PT Pertamina Hulu Energi Offshore South East Sumatra (PHE OSES), with the potential to store domestic and international CO2 through the Asri Basin Project CCS Hub located 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 that will later serve as a reference for the CCS Hub Asri Basin development," Awang explained.

This Pre-Liminary Agreement includes preliminary activities before the Appraisal well drilling. Previously, a joint study by Pertamina and ExxonMobil successfully discovered carbon dioxide (CO2) storage potential with a capacity of up to 3 gigatons, located in Pertamina's oil and gas fields, with an investment value of up to USD 2 billion. This large CO2 storage capacity can permanently 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 CO2 storage potential and a new business opportunity in the Decarbonization program in Southeast Asia. For this reason, Pertamina and ExxonMobil are strengthening the development of the Asri Basin CCS Hub 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 CCS/CCUS technology development aligns with Pertamina's commitment to implementing Environmental, Social, & Governance (ESG) across all business lines to promote future business sustainability.

Vice President of Corporate Communication Pertamina, Fadjar Djoko Santoso, added that the CCS/CCUS step is one of the decarbonization efforts to support Indonesia's Net Zero Emission (NZE) achievement. "PHE, as Pertamina's upstream subholding, plays a significant role in Pertamina's decarbonization achievement. This collaboration is expected to build an effective CCUS strategy in line with the targets," he explained.

PHE will continue to invest in managing upstream oil and gas operations and business following ESG principles. PHE has been a member of the United Nations Global Compact ("UNGC") since June 2022. PHE is committed to the Ten Universal Principles of UNGC in its strategy and operations as part of the ESG aspects implementation. Supporting the Governance aspect, PHE remains committed to Zero Tolerance for Bribery by preventing fraud and maintaining a bribe-free company. One of the measures is the implementation of the ISO 37001:2016 standard Anti-Bribery Management System (SMAP).

PHE continues to develop prudent and excellent operations management domestically and internationally in a professional manner to become a world-class oil and gas company that is environmentally friendly, Socially Responsible, and adheres to 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.**