Carbon Utilization Commitment, Pertamina - Chevron Build Collaboration

Washington DC, November 14, 2023 - As a testament to their commitment to implementing carbon capture, storage, and utilization technologies, PT Pertamina (Persero) and Chevron collaborate in conducting decarbonization, specifically for the Carbon Capture Storage (CCS) or Carbon Capture Utilization and Storage (CCUS) development.

This collaboration is actualized through a Joint Study Agreement between the two companies to assess the feasibility of CCS/CCUS in East Kalimantan, Indonesia. Pertamina and Chevron have agreed to mutually share information on regions and potential CCS/CCUS developments, encompassing geological and geophysical data, maps, models and interpretations, records, summaries, and commercial information.

The agreement was formalized through three Confidentiality Agreements for Carbon Capture Storage/Carbon Capture Utilization and Storage (CCS/CCUS) signing between Pertamina's upstream subsidiaries, namely PT Pertamina Hulu Mahakam, PT Pertamina Hulu Sanga-Sanga, PT Pertamina Hulu Kalimantan Timur, and Chevron Energy International Pte. Ltd.

This agreement follows the Joint Study Agreement (JSA) between PT Pertamina (Persero) and Chevron Energy International Pte. Ltd, initiated on March 6, 2023. Explorations and collaboration between both parties have already commenced since 2022.

The signing was executed by John Anis, the Director of PT Pertamina Hulu Mahakam, PT Pertamina Hulu Sanga-Sanga, and PT Pertamina Hulu Kalimantan Timur, Jason Ashurst as the Authorized Representative of Chevron New Energies, and Mirza Mahendra as the Director of Technical and Oil & Gas Environment, on Monday, November 13, 2023, in Washington, D.C. The signing was witnessed by Nicke Widyawati, the President Director of Pertamina, Jodi Mahardi, the Deputy of Maritime Sovereignty and Energy Coordination of the Coordinating Ministry for Maritime Affairs and Investment, and Wahyu Budiarto, Country Manager of Chevron Indonesia.

Nicke Widyawati, the President Director of Pertamina, stated that Pertamina is fully committed to developing low-carbon businesses through CCS/CCUS projects. This step serves as a key accelerator for decarbonization. The CCS/CCUS technology implementation represents Pertamina's effort to adapt and embrace the energy transition.

"CCS/CCUS projects are highly strategic because Indonesia holds a significant carbon storage potential, making it highly potential to become a CCS hub or a carbon capture and storage center in Southeast Asia," expressed Nicke.

According to Nicke, the current carbon utilization efforts align with the oil and gas utilization, which will still be needed until achieving zero carbon emissions or net zero emissions (NZE) by 2060.

"Fossil energy utilization in Indonesia remains dominant, indicating significant emissions. Hence, it is crucial to focus on CCS/CCUS technologies actively," she stated.

Currently, Pertamina collaborate with Chevron in the CCS Hub project development in East Kalimantan, integrating emission-producing areas in the Balikpapan and Bontang Industrial Clusters.

Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**