ASIATODAY.ID, JAKARTA – PT Pertamina (Persero) is expanding its business cooperation with SINOPEC, China’s state-owned energy company, to accelerate energy transition commitments and increase global business development opportunities. This step was marked by the signing of a Memorandum of Understanding (MoU) between the President Director & CEO of PT Pertamina (Persero), Nicke Widyawati, and Ma Yongsheng, Chairman of the Sinopec Group, in Shanghai, China last week.
The MoU between the two state-owned companies from Indonesia and China covers various business activities, starting from upstream, downstream, renewable energy (NRE), to developing human resource capabilities.
In the upstream sector, Pertamina and Sinopec will expand their collaboration in activities such as unconventional hydrocarbon development, carbon capture utilization and storage (CCUS), enhanced oil recovery (EOR), and ultra-deep drilling. This includes strengthening research and development activities as well as upstream business development.
Meanwhile, collaboration in the downstream sector includes fuel and non-fuel businesses, lubricants, aviation, petrochemicals, as well as transportation and logistics.
As part of the collaboration in the NRE sector, both parties will explore the potential in developing geothermal energy, hydrogen and solar power. In addition, there was agreement to increase capacity development on both sides.
During the event, Nicke Widyawati, President Director & CEO of PT Pertamina (Persero), emphasized the importance of collaboration with strategic partners to accelerate the company’s business during the current energy transition era.
“In the midst of the challenges faced due to climate change and the energy transition, collaboration with partners is crucial to overcome these issues and accelerate Pertamina’s business growth through the transfer of knowledge and technology,” he said, quoted from a press release, Monday (13/11/2023).
Nicke further explained that SINOPEC is an international oil and gas company that has expertise in the fields of CCUS, unconventional hydrocarbons, petrochemicals, hydrogen and others. This allows Pertamina to learn and develop its business.
Previously, Pertamina Hulu Energi as one of Pertamina’s subsidiaries had signed a cooperation agreement with the SINOPEC upstream sector. Therefore, the current collaboration is expected to strengthen the implementation of collaboration between the two companies.
Ma Yongsheng, Chairman of Sinopec Group, confirmed the current mutually beneficial cooperation. He stated that Sinopec highlighted the importance of mutually beneficial cooperation. He believes that the global energy transition requires continued cooperation, and encouraged teams from both sides to strive for better cooperation, as well as personally organizing a group of senior representatives from Pertamina to visit the Shengli oil field.
After introducing Sinopec’s superior technologies in deep and ultra-deep exploration and development, shale oil and gas, renewable energy, and CCUS, Chairman Ma Yongsheng proposed both parties to appoint key coordinators from each party, establishing a cooperation mechanism in accordance with Signed MoU, and start the next phase of work as soon as possible.
Finally, Chairman Ma Yongsheng welcomed the CEO of Pertamina (Persero) to visit the Sinopec Group headquarters in Beijing.
Apart from signing a cooperation agreement with Sinopec, the CEO of PT Pertamina (Persero) was also invited as the Keynote Speaker at the Sinopec Forum with the theme “Managing the Energy Transition: Through Partnership and Collaboration.”
Nicke explained that Indonesia still faces several challenges in achieving energy security, such as dependence on fossil fuels, decreasing oil production, and a continuous increase in national energy demand.
“Energy security is a top priority for Indonesia, therefore we need to reduce dependence on imports by diversifying energy, optimizing local energy resources while expanding access to cleaner energy sources,” said Nicke.
According to Nicke, Indonesia is a strategic route for the global supply chain in the energy transition, rich in renewable energy sources and important materials needed for the energy transition, such as Nickel, Bauxite, Copper, including the potential for NRE, Nature Based Solutions (NBS), and CCUS.
Nicke said that to exploit Indonesia’s important potential, Pertamina plays three important roles in shaping the energy landscape.
First, ensuring Indonesia’s energy security by increasing supply capacity to support economic growth.
Second, mobilize domestic resources to reduce the oil and gas trade deficit by increasing the use of domestic energy sources.
Third, carry out decarbonization, energy efficiency and energy transition, with a target of Net Zero Emissions (NZE).
“Pertamina has developed comprehensive strategic initiatives, including operational decarbonization, establishing low carbon emission businesses, and implementing carbon reduction programs. Our strong support for NZE involves transforming the way we run business and manage company operations to prioritize sustainability,” said Nicke.
However, Nicke noted that Indonesia still faces obstacles in accelerating the energy transition, such as access to competitive financing, technological advances, early stage funding, and increasing human resource capabilities.
“Therefore, to truly succeed in this energy transition, we realize the importance of the right support and encouragement through strategic partnerships. I believe that sustainable businesses are built through the power of collaboration and partnerships,” concluded Nicke.
After attending the Forum, Sinopec invited the Pertamina team to visit the CCUS project operated by Sinopec at the Shengli field, CEOR operations to increase hydrocarbon production and reserves, as well as laboratory equipment & important achievements in the field of unconventional hydrocarbons. Both parties discussed the projects in depth to unlock the potential for collaboration between the two companies.
Pertamina, as a leading company in the energy transition sector, is committed to supporting the 2060 Net Zero Emission target by continuing to encourage programs that have a direct impact on the achievement of Sustainable Development Goals (SDG’s). All of these efforts are in line with the implementation of Environmental, Social & Governance (ESG) in all Pertamina business lines and operations. (AT Network)
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