Pertamina, ExxonMobil agree to develop low carbon technology

Pertamina, ExxonMobil agree to develop low carbon technology

Pertamina’s President Director Nicke Widyawati (first right) and ExxonMobil Indonesia’s President Irtiza H. Sayyed (second right) sign an MoU on cooperation in development of low carbon technology, on the sidelines of the the 26th UN Climate Change Conference (COP26) in Glasgow, Scotland, on Monday (November 1, 2021). (ANTARA/HO-PT Pertamina)

The implementation of CCUS technology is part of Pertamina's energy transition to clean energy agenda. This low carbon technology will support Pertamina's business sustainability in the future
Jakarta (ANTARA) - Indonesia’s state-owned energy company PT Pertamina (Persero) signed a memorandum of understanding (MoU) with American multinational oil and gas corporation ExxonMobil to develop low carbon technology as well as carbon capture, utilization and storage (CCUS).

The MoU was signed by Pertamina’s President Director Nicke Widyawati and ExxonMobil Indonesia’s President Irtiza H. Sayyed on the sidelines of the the 26th UN Climate Change Conference (COP26) in Glasgow, Scotland, on Monday (Nov 1, 2021).

In terms of reducing emissions in the upstream sector, Pertamina has initiated several CCUS projects in its oil and gas field with a potential to reduce up to 18 million tons of CO2, according to a written statement from the company.

One of the CCUS technologies is developed at Gundih Field of Cepu in Central Java, which is integrated with enhanced gas recovery (EGR) technology.


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The project that is planned to be operational in 2026, has a potential to reduce around 3 million tons of CO2 in 10 years and to increase oil and gas production.

“The implementation of CCUS technology is part of Pertamina's energy transition to clean energy agenda. This low carbon technology will support Pertamina's business sustainability in the future," the company’s President Director Nicke Widyawati stated.

However, the challenge in developing CCUS lies in the large investment value and the economic value that is not yet ideal.

In responding to this challenge, according to Nicke, Pertamina continues to synergize and cooperate with various oil and gas companies to accelerate the implementation of CCUS through technology transfer, joint development and increased capacity building.


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Along with ExxonMobil, Pertamina will develop the application of low carbon technology to achieve net-zero emissions in promoting global climate goals.

CCS technology is applied through the application of a CO2 injection process into the subsurface layer to be applied to depleted reservoirs in Pertamina's working area, as well as assessing the potential for hubs and cluster schemes.

Pertamina and ExxonMobil will review the sharing of subsurface technical data needed for the assessment of subsurface formation as a place to store CO2 and its characteristics at certain locations in Indonesia.

The two companies will also review the sharing of infrastructure data including data on pipelines, facilities and wells to evaluate the reuse of existing infrastructure for transportation.


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Such technology can also be applied to the production of blue hydrogen in combination with CCS technology. Another application that will be studied is CCUS; particularly the use of CO2 that will be converted into value-added products whose application is carried out in the upstream and downstream oil and gas industries.

State-Owned Enterprises Minister Erick Thohir said that the cooperation between Pertamina and ExxonMobil would support the ministry’s sustainable polic​y of “Eco Lifestyle”, aiming to create a better place for future generation through the establishment of green energy initiatives.

“Our collaboration today through the carbon capture utilization and storage initiative is a step to realize this (policy). This partnership is essential to reduce greenhouse gas and leverage the national oil and gas production capacity,” Erick Thohir pointed out.

Meanwhile, Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan supports the collaboration between Pertamina and ExxonMobil, which is important to reduce the greenhouse gas emission and tackle the global climate change.

“The opportunities explored by the two companies, as well as the combination of the proper government policies and industrial collaboration will potentially put a tremendous impact in the sectors that contribute to the highest emissions, not only in Indonesia but also in Southeast Asia,” Luhut Pandjaitan, who was present during the MoU signing, noted.


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