Strengthening Commitment Towards Net Zero Emission: PHE Signs Carbon Capture Agreement with ExxonMobil
JAKARTA – PT Pertamina Hulu Energi (PHE), as the upstream subsidiary of Pertamina, continues to explore various collaboration opportunities to enhance the company's performance and business sustainability. This time, PHE signed a preliminary agreement with ExxonMobil during one of the events at the 48th Indonesia Petroleum Association Convention and Exhibition (IPA CONVEX) held at the Indonesia Convention Exhibition (ICE), BSD City.
The preliminary agreement was signed directly by Egon van der Hoeven, Senior Vice President of Business Development at ExxonMobil Indonesia, and Awang Lazuardi, Director of Development and Production, on Wednesday, May 15. The signing was witnessed by notable attendees, including PT Pertamina (Persero) President Director Nicke Widyawati, President of ExxonMobil Low Carbon Solutions Asia Pacific Irtiza Sayyed, and President of ExxonMobil Indonesia Carole Gall.
This preliminary agreement is a derivative of the Head of Agreement (HoA) between ExxonMobil, Pertamina, and PHE, which was executed in 2022.
Through this strengthened collaboration, PHE and ExxonMobil will refine and prepare a commercial model for developing a regional CCS/CCUS hub in PT Pertamina Hulu Energi Offshore South East Sumatera's (PHE OSES) working area, with the potential to store domestic and international CO2 through the Asri Basin Project CCS Hub located in the PHE OSES Working Area.
"As part of the ongoing study, PHE and ExxonMobil (Esso Indonesia) will conduct appraisal drilling to gather data, which will serve as the basis for developing the Asri Basin CCS Hub," explained Awang.
The preliminary agreement outlines preliminary activities before the appraisal well drilling is conducted. Previously, a joint study by Pertamina and ExxonMobil discovered CO2 storage potential with a capacity of up to 3 gigatons in Pertamina's oil and gas fields, with an investment value of USD 2 billion. This large CO2 storage capacity can permanently store the current average annual CO2 emissions of Indonesia 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. This is why Pertamina and ExxonMobil are strengthening their cooperation in developing the Asri Basin CCS Hub to reduce carbon emissions while supporting economic growth through investment, job creation, and increased national income.
"CCS/CCUS technology is a new trend in addressing the energy transition to achieve the global Net Zero Emission (NZE) target. With a spirit of collaboration in facing existing challenges, the implementation of CCS/CCUS in Indonesia is believed to support increased oil and gas production while reducing greenhouse gas (GHG) emissions," emphasized Awang.
The development of CCS/CCUS technology aligns with Pertamina's commitment to implementing environmental, social, and governance (ESG) principles across all business lines to promote future business sustainability. PHE will continue to invest in managing upstream oil and gas operations and businesses in accordance with ESG principles. PHE has been a member of the United Nations Global Compact (UNGC) since June 2022, committing to the Ten Universal Principles of the UNGC in its strategies and operations as part of its ESG implementation.
Supporting the aspect of governance, PHE also maintains a zero-tolerance bribery policy by ensuring fraud prevention measures and keeping the company free from bribery. This includes implementing the ISO 37001:2016 Standard Anti-Bribery Management System (SMAP).
PHE continues to develop prudent and excellent operational management domestically and internationally in a professional manner to achieve its goal of becoming a world-class oil and gas company that is environmentally friendly, socially responsible, and governed by good practices.
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