Pertamina, ExxonMobil, KNOC agree to increase green business potential with CCS

Jakarta—PT Pertamina (Persero), ExxonMobil, and Korea National Oil Corporation (KNOC) signed a framework agreement on Wednesday, May 15, to study the implementation of Carbon Capture Storage (CCS) Hub Development in the Sunda Asri region.

Nicke Widyawati, president director of Pertamina, said one of the important points of this agreement is the opening of Indonesia’s green business potential as a target for carbon emission storage for South Korean oil and gas companies. The agreement was signed on the sidelines of IPA Convex 2024.

As the party with the concession in the block, Pertamina offers concepts ranging from carbon capture to CO2 transportation and injection. However, this still requires permission from the government, which is one of the crucial points in this agreement.

“Because we have the concession in the block, but this needs permission from the government because it has a separate license,” Widyawati said.

In this context, KNOC is looking for storage to store its CO2, while Exxon owns the technology that supports the process. Conversely, Pertamina is trusted as the country’s representative in managing carbon emissions in the inter-state reservoir.

Pertamina targets the project’s Final Investment Decision (FID) to be set in 2026. However, to support the project’s smooth running, the government is asked to immediately finalize the derivative regulations on CCS, as promised earlier.

This step is expected to accelerate the development of CCS infrastructure and open up wider business opportunities to address carbon emission issues. (Hartatik)

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