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Decarbonisation Collaboration: Pertamina and Chevron Spearhead Energy Transformation in Indonesia




Pertamina and Chevron Energy International Pte Ltd Collaborate on Carbon Capture Projects in East Kalimantan

On November 13, 2023, PT Pertamina (Persero) and Chevron Energy International Pte Ltd formalized a collaboration to reduce carbon emissions in Indonesia. This partnership focuses on developing carbon capture and storage technology, known as Carbon Capture Storage (CCS) or Carbon Capture Utilization and Storage (CCUS). This initiative is crucial to Pertamina's commitment to minimizing environmental impact and supporting the transition to clean energy.


Joint Study Agreement (JSA) and Confidentiality Agreement CCS/CCUS

The collaboration is realized through a Joint Study Agreement (JSA), where Pertamina and Chevron will assess the feasibility of CCS/CCUS in East Kalimantan (Kaltim), Indonesia. To support this effort, three upstream subsidiaries of Pertamina—PT Pertamina Hulu Mahakam, PT Pertamina Hulu Sanga-Sanga, and PT Pertamina Hulu Kalimantan Timur—have signed three confidentiality agreements related to CCS/CCUS. These agreements facilitate the exchange of information concerning geological and geophysical data, maps, models and interpretations, records, summaries, and commercial information related to potential development areas.


Advancing the CCS Hub Project in East Kalimantan

Pertamina and Chevron have been exploring and collaborating since 2022, and this signing marks a concrete step towards accelerating the development of the CCS Hub project in East Kalimantan. This project aims to integrate emission-producing areas in the Balikpapan and Bontang Industrial Clusters, creating a holistic solution to address carbon emissions challenges in Indonesia.


Pertamina's Commitment to Low-Carbon Business and Decarbonisation

Nicke Widyawati, President Director of Pertamina, expresses the company's commitment to developing a low-carbon business through CCS/CCUS projects. This move is key in accelerating decarbonization and adapting to global energy transition trends. Widyawati also highlights Indonesia's significant carbon storage potential, positioning the country as a key CCS centre in Southeast Asia.


The Importance of CCS/CCUS Technology in Achieving Net Zero Emission 2060

Pertamina acknowledges the dominance of fossil energy use in Indonesia, leading to significant carbon emissions. Therefore, CCS/CCUS technology is deemed crucial in addressing this challenge. Widyawati emphasizes the seriousness required in carbon utilization efforts, especially considering Indonesia's continued high demand for fossil energy.


Pertamina's Contribution to Sustainable Development Goals (SDGs) and Net Zero Emission 2060

As a leading company in the energy transition, Pertamina is committed to supporting the Net Zero Emission (NZE) 2060 target. Collaboration with Chevron on the CCS Hub project in East Kalimantan is tangible evidence of this commitment. Pertamina's efforts align with implementing environmental, social, and governance (ESG) practices across its business lines and operations, positively impacting the achievement of Sustainable Development Goals (SDGs).


Conclusion

The collaboration between Pertamina and Chevron in developing CCS/CCUS technology marks a significant step toward energy transformation in Indonesia. Focusing on decarbonization and carbon utilization, this project is a strategic initiative to reduce emissions and supports the global vision of clean and sustainable energy. Pertamina and Chevron contribute to positive change through this joint effort, aligning with sustainable development goals and attaining Net Zero Emissions in 2060.

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