Indonesian energy company PT Pertamina (Pertamina) will join forces with oil giant ExxonMobil to help decarbonise the country.

To meet its energy targets – a 29% reduction in greenhouse gas (GHG) emissions by 2030 and 41% with international assistance - the Indonesian Government introduced a sustainably policy aimed at supporting green initiatives.

These include the collaboration between industrial players to development carbon capture, utilisation and storage (CCUS) technology.

“This CCUS collaboration is an important partnership to reduce the effect of GHG’s and increase the national oil and gas production capacity,” said Erick Thohir, Minister of State Owned Enterprises (SOE).

The partnership is set to build upon the 40+ year relationship between the two companies.

Thohir added that the collaboration will have the potential to make the ‘greatest impact’ in the highest-emitting sectors not just in Indonesia but also in Southeast Asia.

Existing CCUS projects started up by Pertamina have the potential reduce carbon dioxide (CO2) by up to 18m tonnes.

One such project, planned to begin operations in 2026, is located at Gundih Field, Cepu in Central Java which could reduce around 3m tonnes of CO2 in 10 years.

With ExxonMobil, Pertamina plan to capture carbon before storing it in depleted reservoirs owned by Pertamina. The working relationship will involve the companies sharing technical subsurface data in addition to reviewing the reuse of existing infrastructure for transportation.

Looking ahead, the partners will evaluate the potential for the technology to be combined with the production of blue hydrogen.