Pertamina and ExxonMobil team up for CCS hub development in Indonesia 

The companies have signed an agreement outlining preliminary work to design a commercial model for the Asri Basin Project carbon capture and storage (CCS) hub.  

Shivam Mishra May 16 2024

Indonesian Government-backed oil company Pertamina and ExxonMobil are set to conduct appraisal drilling for a CCS hub in Indonesia, reported Reuters.  

This initiative aligns with Indonesia's strategy to utilise its depleted oil and gas reservoirs and saline aquifers for storing CO₂, with the potential capacity for hundreds of gigatonnes. 

During the Indonesia Petroleum Association (IPA) annual conference, the companies signed an agreement outlining preliminary work to design a commercial model for the Asri Basin Project CCS hub.  

Pertamina Hulu Energi CEO Awang Lazuardi said: "Pertamina Hulu Energi and ExxonMobil will carry out appraisal drilling in order to collect data, which will later become a reference for the development of the hub."  

A joint study by Pertamina and ExxonMobil revealed that the Asri basin, located in Pertamina's Offshore South East Sumatra block, could store up to three gigatonnes of carbon dioxide and would necessitate an investment of approximately $2bn (Rp31.82trn). 

In addition to the appraisal drilling plans, Pertamina and ExxonMobil have entered into a framework agreement with South Korea's KNOC.  

Pertamina CEO Nicke Widyawati stated that this partnership allows KNOC to join the project and inject emissions into the facility. 

The CCS initiative comes after Indonesia launched its first oil and gas auction of the year, offering five blocks to stimulate exploration and address the country's declining production.  

Out of 128 hydrocarbon basins in Indonesia, 68 remain unexplored. 

Separately, ExxonMobil has made a new oil discovery off the coast of Angola in Block 15.  

The Likembe-01 well, part of the Kizomba B development area and operated by ExxonMobil alongside partners Azule Energy, Equinor and Sonangol, was drilled to a depth of 3,013m and encountered Miocene-age reservoirs. 

Uncover your next opportunity with expert reports

Steer your business strategy with key data and insights from our latest market research reports and company profiles. Not ready to buy? Start small by downloading a sample report first.

Newsletters by sectors

close

Sign up to the newsletter: In Brief

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Thank you for subscribing

View all newsletters from across the GlobalData Media network.

close