The partnership was sealed on Friday and follows a memorandum of understanding that companies signed back in November 2021. It appears the research and feasibility phases are complete and both parties are ready to begin design and construction in the near future.
This will include finding suitable fields for CO2 storage, technical characteristics of the capture process and working together on establishing the regulatory and policy framework needed for the projects.
After signing the agreement on Petronas’ behalf, head of carbon management Emry Hisham Yusoff said: “Petronas is proud to work with its long-standing partner, ExxonMobil to pursue CCS projects together, aligning our shared aspiration to deliver energy solutions in a responsible and sustainable manner.”
Petronas also stated that the carbon capture initiative is part of the “deliberate steps to build a sustainable portfolio with innovative solutions to produce energy responsibly, supporting the transition to a lower-carbon future through collaborative efforts with industry partners”.
Relevant data related to pipelines, facilities and wells was also to be shared to evaluate the potential reutilisation of existing infrastructure for transportation of CO2 and storage in selected locations.
Petronas is working with other companies to develop carbon capture projects in Malaysia with the world’s largest offshore carbon capture facility at Sarawak set to launch in 2025.
Earlier in December, 2022 the company announced it will build the first CCS project in Peninsular Malaysia together with JX Nippon Oil & Gas Exploration corp.
Baker Hughes is also working in the region. In January, 2023 the Houston, Texas company was awarded a contract for supplying CO2 compression equipment for the Kasawari gas development field in partnership with Petronas and South Korean company POSCO Holding.