Jakarta – US oil and gas company ExxonMobil Corporation has signed a memorandum and understanding (MoU) with the Indonesian government to explore the development of Carbon Capture and Storage (CCS) and low-carbon petrochemical complex projects.
The MoU was signed by Zoe Bunga, Vice President of ExxonMobil Chemical International Major Growth Venture, and Elen Setiadi, Deputy for Energy and Mineral Resources Coordination at the Coordinating Ministry for Economic Affairs, on Wednesday, January 22.
Coordinating Minister for Economic Affairs Airlangga Hartato and EMCL President Carole Gall witnessed the MoU signing.
Through its Indonesian unit, ExxonMobil Cepu Limited (EMCL), ExxonMobil currently operates and develops the Cepu oil block in East Java. It is the largest oil producer in the country.
Minister Airlangga said the MoU marks a joint commitment to supporting sustainable economic development in Indonesia and will open up great opportunities for the petrochemical sector’s development.
He said the MoU aims to explore the potential for ExxonMobil’s investment in constructing a world-class petrochemical complex in Indonesia, with an estimated investment value of US$10 billion.
He added the project would help create jobs during the construction period and is a form of commitment to sustainable development.
Minister Airlangga claimed that the construction of the CCS is expected to reduce CO2 emissions by up to 90%.
Carole Gall said the above initiative aims to produce high-performance polymers to meet the growing industrial demand in Asia. It aligns with the company’s focus on meeting society’s needs through advantageous projects and high-value products.
“The complex would be designed as a lower-emission facility, potentially leveraging nearby CO2 storage opportunities,” she said.
She said the MoU facilitates information exchange and helps identify the necessary fiscal and regulatory frameworks for future investment decisions.
“We look forward to working closely with the Government of Indonesia to evaluate this potential opportunity which also supports Indonesia’s economic growth and sustainability goals,” Gall said. (Roffie Kurniawan)
