US-headed ExxonMobil Corporation (ExxonMobil), one of the largest publicly traded international energy companies, and Indonesia’s state-owned energy company PT Pertamina (Persero) have signed a Joint Study Agreement (JSA) to assess the potential for large-scale implementation of lower-emissions technologies, including carbon capture and storage (CCS) and hydrogen production.
The Joint Study Agreement (JSA) builds on efforts to advance carbon capture and storage (CCS) in Indonesia that have taken place since the companies signed a Memorandum of Understanding (MoU) at COP 26 in Glasgow, Scotland.
The expanded agreement will support Indonesia’s net-zero ambitions and builds on a decades-long strategic partnership between ExxonMobil and Pertamina.
As an embodiment of Go Global, Pertamina collaborated with 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 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 Minister Panjaitan.
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.
This is another step forward for both companies, and it positions Indonesia to play a leading role in supporting the reduction of emissions from hard-to-decarbonize sectors, said Dan Ammann, newly appointed President of ExxonMobil Low Carbon Solutions.
ExxonMobil Low Carbon Solutions business is working to commercialize lower-emission technologies and support global emission-reduction efforts.
It is initially focusing its carbon capture and storage efforts on point-source emissions, the process of capturing CO2 from industrial activity that would otherwise be released into the atmosphere and injecting it into deep underground geologic formations for safe, secure, and permanent storage.
Expansion of carbon capture and storage in Southeast Asia would support a lower carbon future. Governments, the private sector, and communities will need to work hand-in-hand to make this a reality, Dan Ammann said.
Committed to national net-zero
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 emissions through various initiatives carried out by the company.
The Carbon Capture and Storage (CCS) and Carbon Capture, Utilization and Storage (CCUS) technologies application become an important initiative to promote the global trend of decarbonization as well as a solution for Enhanced Oil/Gas Recovery (EOR/EGR) technology application to increase the oil and gas production, Nicke Widyawati said.
She added that the application of CCS and CCUS technology is expected to play an essential role in reducing greenhouse gases (GHG) 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 Widyawati.
Nicke also hopes that the signing of the Joint Study Agreement between PT Pertamina and ExxonMobil can examine in-depth CCS and 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-hand with the principles of energy security, accessibility, and affordability.
The Pertamina-ExxonMobil Joint Study 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 and CCUS technology is in line with Pertamina’s commitment to implement Environment, Sustainability, and Governance (ESG) in all lines of the company’s business, to encourage business sustainability in the future, ended Nicke Widyawati.