In line with Mubadala Energy’s commitment to play an active role in the energy transition and explore new energy solutions including CCUS, the partnership will see both companies cooperate to conduct joint studies and, potentially, business development activities in this strategic area of carbon mitigation.
The agreement provides a framework to explore CCUS solutions for Pertamina’s and Mubadala Energy’s existing portfolio of assets in Indonesia through collaborative discussions and evaluation of relevant projects. In addition, this Memorandum of Understanding will facilitate knowledge sharing between both parties while exploring potential joint investments in upstream projects that may seek to utilize CCUS applications.
Commenting on the signing, Mansoor Mohamed Al Hamed, CEO Mubadala Energy, said; “When we launched our new strategy last year, CCUS was an important pillar of our ambitions to further expand our business in low carbon solutions. I am therefore pleased to forge this exciting collaboration with Pertamina to explore CCUS opportunities, not least because we share a commitment to play a proactive role in supporting the energy transition through the decarbonization of our operations. With our track record as a responsible operator delivering reliable and safe operations, I believe we can harness both companies’ collective expertise to accelerate the deployment of potential CCUS technologies. And as the United Arab Emirates prepares for COP28, we are proud to be driving a strategic collaboration that aligns with the Net Zero ambitions of both the UAE and Indonesia.”
Nicke Widyawati, CEO, Pertamina, commented: “With over six decades of experience in the energy industry, Pertamina has been integral to Indonesia’s growth story. As the country continues to develop, the company is committed to decarbonization goals and securing Indonesia’s energy requirements while supporting the country’s 2060 Net Zero goals.”
Mubadala Energy has been present in Indonesia since 2004, with four operated Production Sharing Contracts (PSC), including the Sebuku PSC containing the award winning Ruby gas field, in addition to the Andaman I and South Andaman Gross Split PSCs. This portfolio makes the company the largest net acreage holder in the area, securing the core of the North Sumatra basin for the future exploration growth with the potential to unlock a new material gas play. Most recently, Mubadala Energy announced a new gas discovery at the Timpan-1 exploration well located 150 kilometers offshore North Sumatra, Indonesia, where a 390 foot gas column in high net to gross fine-grained sandstone reservoir, was confirmed.
In 2022, Mubadala Energy announced a strategic pivot to expand across the gas value chain, explore new energy sectors such as Blue Hydrogen and CCUS, and accelerate efforts to decarbonize it operations. The announcement of this new partnership with Pertamina is closely aligned to this plan and provides further momentum to a number of projects currently being explored.