Pertamina And ExxonMobil Team Up On Carbon Capture Project

Pertamina And ExxonMobil Team Up On Carbon Capture Project - Carbon Herald

Indonesia’s state-controlled energy company, Pertamina, is joining forces with American energy major ExxonMobil to explore building a facility to capture and store carbon dioxide. 

This initiative comes alongside an initial storage agreement signed with South Korea’s KNOC yesterday.

Indonesia believes its underground resources, including depleted oil and gas reserves and saltwater aquifers, have the potential to store vast amounts of CO2, estimated in the hundreds of gigatonnes. 

To capitalize on this potential, the country recently authorized carbon capture and storage (CCS) operators to dedicate up to 30% of their storage capacity for CO2 captured outside Indonesia.

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The collaboration between Pertamina and ExxonMobil was announced during an annual Indonesian petroleum industry conference. 

The companies plan to conduct additional drilling to gather more data on a specific area, the Asri Basin, located offshore in Southeast Sumatra. 

This information will be crucial for designing a commercially viable CCS hub in the basin.

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“Pertamina Hulu Energi and ExxonMobil will carry out appraisal drilling in order to collect data which will later become a reference for the development of the hub,” explained Awang Lazuardi, head of Pertamina Hulu Energi.

Earlier studies conducted jointly by Pertamina and ExxonMobil suggest the Asri Basin has the potential to store up to 3 gigatonnes of CO2. The project is estimated to require an investment of $2 billion.

Furthermore, Pertamina’s CEO, Nicke Widyawati, revealed that the companies have signed a preliminary agreement with South Korea’s KNOC, allowing them to participate in the project and store their captured emissions at the facility.

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