Daniel Purba, Pertamina's senior VP of corporate strategy, told CNBC Indonesia:
- Our provisional estimate for investment needs is around $500 million, excluding operating costs that will be incurred during CCS operations
A MoU with Petamina extends to the potential for other low-carbon opportunities such as hydrogen.
The companies expect to identify geologic formations deep underground that could be suitable to safely store CO2, and the potential for safe, commercially viable utilization of CO2 by jointly examining subsurface data.
In October, GlobalData estimated that Indonesia is likely to start the operations of 27 midstream oil & gas projects between 2021 and 2025, mainly in transmission pipelines and liquids storage segments.
GlobalData oil & gas analyst Bhargavi Gandham noted:
Indonesia, being one of the largest economies in Southeast Asia, is witnessing strong demand for oil and gas from both industrial and residential segments
ExxonMobil, which set up a low-carbon solutions division in February, is focusing on building a carbon capture and storage business in Asia.
The company believes there is over 300 billion tonnes of storage capacity in Southeast Asia alone.