Bulk of Pertamina's emissions coming from its offshore operations

By Ariana Hurtado, Editor and Director of Special Reports

HOUSTON — Indonesia’s state-owned energy company Pertamina is working to reach its 2030 target for cutting emissions of CO₂ from its upstream operations.

Just over two-thirds of Pertamina's oil and gas production comes from onshore operations, while the rest is offshore, Rystad Energy reported. 

The onshore assets’ share of the company’s total emissions is lower, however, at slightly above 50% of the total.

But it is the offshore operations, Pertamina’s operated blocks in the Kutai Basin and the West Java Basin, that are responsible for the bulk of emissions. 

On Nov. 14, PT Pertamina (Persero) announced a collaboration with Exxon Mobil for the development of CCS in the Java Sea, which has a capacity of up to 3 gigatons of CO₂ with an investment value above $2 billion, Pertamina said.

Pertamina and Exxon Mobil signed an amendment to the principles of agreement as a continuation of the agreement that was produced at the G20 event in November 2022. In this agreement, Pertamina and Exxon Mobil agreed to continue their cooperation for the evaluation of CCS hubs in the northwestern part of Java, precisely in the Asri Basin and Sunda Basin. The CCS hub at this location is expected to offer significant volumes of geological storage, which can capture and inject CO₂ from domestic and regional industries, Pertamina said.

In addition, in May 2022, Pertamina and Exxon Mobil collaborated to study the application of CCS and CCUS technologies in three oil and gas field areas. The three regions included South Sumatra, East Kalimantan and West Java. The cooperation agreement between Pertamina and Exxon Mobil was realized through a joint study agreement as a follow-up to the memorandum of understanding (MoU) signed by both parties at COP in Glasgow 26 years prior.

More recently, BP Berau, operator of the Tangguh offshore gas fields and onshore LNG complex, signed a MoU with PT Kilang Pertamina Internasional in October 2023. This covers a study to be performed by Pertamina on the potential gas supply and CO₂ injection in Tangguh for a potential blue ammonia development in Teluk Bintuni, Papua Barat.

Pertamina’s plan is to support growth in the petrochemical industry in Papua Barat, and the MoU could also support Indonesia’s goals for the energy transition, BP Berau said, through delivering clean energy via its Tangguh CCUS development. Indonesia’s government approved Tangguh CCUS in 2021. 

11.30.2023