Mubadala Energy and Pertamina, the Indonesian state-owned integrated energy company, have entered into an agreement to discuss, explore and potentially engage in energy transition initiatives, primarily focused on carbon capture, utilisation and storage (CCUS) applications in Indonesia.

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 MoU will facilitate knowledge sharing between both parties while exploring potential joint investments in upstream projects that may seek to utilise CCUS applications.

Commenting on the singing, 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 decarbonisation of our operations. With our track record as a responsible operators delivering reliable and safe operations, I believe we can harness both companies’ collective expertise to accelerate the deployment of potential CCUS technologies. As the UAE prepares for COP28, we are proud to be driving a strategic collaboration that aligns with the Net Zero ambitions of both countries.”

Nicke Widyawati, CEO of 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 decarbonisation 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 and 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 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 kilometres offshore North Sumatra, Indonesia, where a 390-foot gas column in high net to gross fine-grained sandstone reservoir was confirmed.