Minister of Energy and Mineral Resources (ESDM), Arifin Tasrif, has announced that ExxonMobil is planning to conduct a joint study to explore potential oil and gas reserves in Indonesia.
While the exact location where the American company will carry out the joint study remains confidential, Arifin expresses hope that the commitment is expected to materialize by the end of this year.
“They will begin by the end of this year. They will conduct seismic surveys and exploration. The specific area is classified,” Arifin said during his visit to the Banyu Urip Field, Cepu Block, in Central Java, on Friday, August 9, 2024.
Dwi Soetjipto, Head of the Upstream Oil and Gas Regulatory Task Force (SKK Migas), emphasized the importance of ExxonMobil’s exploration activities for Indonesia, especially in light of the ongoing decline in national oil production.
“Exploration activities like this are critically needed because the national oil production curve can only be improved through the discovery of new, large reserves or what we call a ‘giant discovery,'” Dwi said.
This development is seen as a crucial step toward addressing Indonesia’s declining oil output and ensuring the country’s energy security in the coming years.
Previously, ExxonMobil had a footprint contributing in carbon capture storage/carbon capture utilization storage (CCS/CCUS) in Indonesia with Pertamina Hulu Energi (PHE), a subsidiary of State oil and gas company PT Pertamina. PHE and ExxonMobil established a technology hub for CCS/CCUS in the Offshore Southeast Sumatra (OSES).
PHE and ExxonMobil has further 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.
The development of the CCS Hub with ExxonMobil represents a potential CO2 storage opportunity and a new business opportunity in the decarbonization program in Southeast Asia.
