This CCS/CCUS hub has the potential to store domestic and international carbon dioxide (CO2) through the Asri Basin Project CCS Hub located in the OSES working area.

The development of CCS/CCUS in the OSES working area was marked by the signing of a Preliminary Agreement between Pertamina and ExxonMobil at the 48th IPA CONVEX held on Wednesday, May 15, 2024.

This Preliminary Agreement is one of the derivative agreements from the Head of Agreement (HoA) between ExxonMobil, Pertamina, and PHE, which was executed in 2022.

The signing of this Preliminary Agreement was conducted by Senior Vice President of Business Development ExxonMobil Indonesia, Egon van der Hoeven, and PHE Director of Development & Production, Awang Lazuardi, on Wednesday, May 15, 2024.

Among those present to witness the signing were President Director of PT Pertamina, Nicke Widyawati, President of ExxonMobil Low Carbon Solutions Asia Pacific, Irtiza Sayyed, and President of ExxonMobil Indonesia, Carole Gall.

Through this strengthened collaboration, PHE and ExxonMobil will refine and prepare a commercial model for the development of a regional CCS/CCUS hub in the OSES working area.

"As part of the ongoing joint study, PHE and ExxonMobil will conduct Appraisal drilling to gather data that will serve as a reference for the development of the Asri Basin CCS Hub," Awang said on Wednesday, May 15, 2024.

The Preliminary Agreement outlines preliminary activities before the Appraisal well drilling is carried out. Previously, a joint study by Pertamina and ExxonMobil identified the potential storage of carbon dioxide (CO2) up to 3 gigatons in Pertamina's oil and gas fields, with an investment value of US$ 2 billion.

This significant CO2 storage capacity is capable of permanently storing CO2 emissions from the entire Indonesia for an average of the current period, up to 16 years ahead.

The development of the Asri Basin CCS Hub with ExxonMobil represents a potential CO2 storage opportunity and a new business opportunity in the decarbonization program in Southeast Asia.

Based on this potential, Pertamina and ExxonMobil are strengthening their collaboration in the development of the Asri Basin CCS Hub to reduce carbon emissions and support economic growth through investment, job creation, and increased state revenue.

Awang said that CCS/CCUS technology is a new trend in addressing energy transition to achieve global Net Zero Emission (NZE) targets.

"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," he said.

Vice President of Corporate Communication at Pertamina, Fadjar Djoko Santoso, added that this CCS/CCUS initiative is one of the decarbonization efforts to support Indonesia's NZE achievement.

"PHE, as Pertamina's upstream sub-holding, plays a significant role in Pertamina's decarbonization efforts. This collaboration is expected to build an effective CCUS strategy in line with the targets," Fadjar said.