Indonesia's state energy firm, Pertamina, along with U.S. oil majors Exxon Mobil and Chevron Corp, is progressing in their discussions to invest in carbon capture facilities while Exxon is considering a petrochemical project in the country.
Pertamina and Exxon agreed to conduct further evaluations for $2 billion in investments in carbon capture and storage (CCS) facilitie, using two underground basins in the Java Sea, according to Pertamina’s statement on Nov. 14.
The CCS hub with Exxon has the potential to store at least 3 Gt of CO2 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 the two firms have the potential to cut 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, preceding the APEC meetings in San Francisco this week.
The deals demonstrate that 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," stated Jodi Mahardi, a senior government official.
Indonesia plans to use its depleted hydrocarbon reservoirs for carbon storage and is finalizing a regulation that would open up storage schemes for carbon from overseas to be stored within the country.
The largest economy in Southeast Asia has a storage capacity of 8 Gt of carbon in the depleted reservoirs, with an additional 400 Gt capacity available if saline aquifers are utilized.
During the same trip, three units of Pertamina also agreed to share information with Chevron for potential development of 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 inked a joint study deal to explore geothermal potential in North Sulawesi.
Furthermore, 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.