According to a statement released by Pertamina on Tuesday, the state oil firm of Indonesia and the American oil giant Chevron (CVX.N) have inked agreements to exchange data to build a carbon capture plant in East Kalimantan.
According to the announcement, Pertamina committed to providing Chevron with information on where they may build carbon capture, storage (CCS) or carbon capture, utilization, and storage (CCUS). This information would be shared through three of its upstream units.
Maps, geophysical, geological, and commercial data are examples of this information. Exxon Mobil is one of the several possible CCS and CCUS agreements that Pertamina is currently evaluating.
“In Indonesia, the predominant energy source is still fossil fuel, which results in significant emissions.” Consequently, it’s critical to treat CCS and CCUS technologies seriously, according to Pertamina CEO Nicke Widyawati.
When contacted for comment, Chevron did not answer right away. Indonesian President Joko Widodo inked the agreements during a visit to the United States.
Indonesia is finalizing a regulation allowing industries outside the oil and gas sector to participate in the country’s CCS and CCUS storage schemes, allowing the government to store carbon abroad. This initiative aims to use Indonesia’s depleted hydrocarbon reservoirs as storage facilities for greenhouse gases.
It is anticipated that Indonesia would only need to use half of its eight gigatonne carbon storage capacity in the depleted reservoirs; if it uses its saline aquifers, an additional 400 gigatonnes of storage capacity are available.