US energy giant ExxonMobil is set to conduct a joint study to identify potential oil and gas reserves in Indonesia, according to the Indonesia Business Post.
The Minister of Energy and Mineral Resources, Arifin Tasrif, has indicated that while the specific location for exploration is classified, activities are expected to commence by the end of the year.
“They will begin by the end of this year. They will conduct seismic surveys and exploration. The specific area is classified,” said Arifin during a visit to the Banyu Urip Field in the Cepu Block, Central Java.
The commitment from ExxonMobil is seen as a key move to address Indonesia's declining oil production and enhance the country's energy security.
The Head of the Upstream Oil and Gas Regulatory Task Force, Dwi Soetjipto, stressed the importance of ExxonMobil's exploration efforts.
“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 was quoted as saying.
ExxonMobil has previously collaborated with Pertamina Hulu Energi (PHE), a subsidiary of state oil and gas company PT Pertamina, on carbon capture storage/carbon capture utilisation storage (CCS/CCUS) projects in Indonesia.
PHE and ExxonMobil have a CCS/CCUS technology hub offshore south-east Sumatra and identified the potential to store up to three gigatonnes of CO₂ in Pertamina’s fields, with a $2bn (Rp31.27trn) investment.
The CCS Hub development with ExxonMobil offers a CO₂ storage opportunity and opens new business avenues in South East Asia's decarbonisation efforts.
Separately, last month, ExxonMobil announced its intention to transfer operations of assets under two production-sharing contracts in Malaysia to the national energy company Petronas, including the long-producing Tapis oilfield.
