Indonesia Moves Ahead with CCS Talks with US Oil Majors, Eyes Petrochemical Project

Fransiska Nangoy and Bernadette Christina
Tuesday, November 14, 2023

Indonesia's state energy company Pertamina and U.S. oil majors Exxon Mobil and Chevron Corp. are moving ahead with their discussions to invest in carbon capture facilities, while Exxon eyes a petrochemical project in the country.

Pertamina and Exxon agreed to carry out further evaluations for $2 billion in investments in carbon capture and storage (CCS) facilities using two underground basins in the Java Sea, Pertamina said in a statement on Tuesday.

The CCS hub with Exxon has the potential to store at least 3 gigatonnes of carbon dioxide emitted by industries in Indonesia and the rest of the region, Pertamina Chief Executive Nicke Widyawati said. 

Jack Williams, senior vice president at Exxon Mobil, said Exxon and Pertamina have the potential to reduce emissions and support economic growth in Indonesia. 

The agreements were signed during Indonesian President Joko Widodo's visit to Washington to meet with U.S. President Joe Biden, ahead of the APEC meetings in San Francisco this week. 

The deals show the Indonesian government and other stakeholders are "ready to utilize Indonesia's CCS potential for the advancement of low-carbon industries, investment, and job creation for the Indonesian people," said Jodi Mahardi, a senior government official.

Indonesia wants to use its depleted hydrocarbon reservoirs for carbon storage and is finalizing a regulation that would open up storage schemes for carbon from abroad to be stored in the country.

The Southeast Asian country has storage capacity of 8 gigatonnes of carbon in the depleted reservoirs, while an additional 400 gigatonnes of capacity is available if it utilizes its saline aquifers.

During the same trip, Pertamina, through three of its units, also agreed to share information with Chevron to potentially develop either CCS or carbon capture utilization and storage (CCUS) sites in East Kalimantan.

The information may include geological and geophysical data, maps and commercial information, and other items.

Pertamina, Chevron, and the United Arab Emirates' Mubadala Energy also signed a joint study deal to explore geothermal potential in Indonesia's North Sulawesi.

A unit of Exxon also signed an initial deal with the Coordinating Ministry for Maritime and Investment Affairs to explore investment in a petrochemical project in Indonesia to produce polymers.   

(Reuters - Reporting by Fransiska Nangoy and Bernadette Christina; Editing by Tom Hogue and Christian Schmollinger)

Categories: Geoscience Industry News Activity Asia Decarbonization Carbon Capture CCS

Related Stories

SBM Offshore Starts Construction of FSO for Trion Oil Field off Mexico

Russia Targets 2028 for Sakhalin-3 Gas Project Start Up

Yinson Production Nets DNV Approval for New FPSO Hull Design

Petronas to Leverage AI to Expedite Oil and Gas Exploration Activities

Hanwha Ocean Enlists ABB for Singapore’s First Floating LNG Terminal

POSH Set to Tow Nguya FLNG from China to Eni’s Congo Field

DOF Secures Moorings Hook-Up Job in Asia Pacific

Keppel, Seatrium in $53M Arbitration Case Over Brazil Corruption Scheme

Baker Hughes, Petronas Team Up for Asia-Pacific Energy Resilience

Fugro Expands Geotechnical Testing Capabilities in Indonesia

Current News

Ventura Offshore’s Semi-Sub Rig to Keep Drilling for Eni in Asia

SBM Offshore, SLB to Optimize FPSO Performance Using AI

MODEC Ramps Up Hammerhead FPSO Work After ExxonMobil's Go-Ahead

Aesen, DOC JV Targets Subsea Cable Logistics

Timor Gap Boosts Stake in Finder Energy’s Timor-Leste Oil Fields

SBM Offshore Starts Construction of FSO for Trion Oil Field off Mexico

Russia Targets 2028 for Sakhalin-3 Gas Project Start Up

Seatrium Secures ABS Backing for Deepwater FPSO Design

MDL Secures Cable Laying Job in Asia Pacific

Hibiscus Petroleum Starts Drilling at Teal West Field off UK

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com