Pertamina, KNOC sign deal on CCS at Indonesian rigs

Indonesian state-owned refiner and South Korean state-owned oil firm KNOC have signed a joint study agreement to develop rig-to-carbon capture and storage (CCS) at offshore oil and gas platforms in Indonesia.

"Rig-to-CCS is a technological development initiative to repurpose decommissioned offshore oil and gas platforms into [CCS] facilities," said Pertamina. The offshore facilities are located in the northwest seas of Java, according to KNOC.

The study will help to address the challenges that Indonesia faces in the abandonment and site restoration (ASR) of offshore platforms, said Pertamina's chief executive Nicke Widyawati. Indonesia has multiple offshore oil and gas platforms that are no longer being used after the cessation of output after decades of production, she said. "The cost of conventional ASR or decommissioning is extremely high, necessitating an alternative ASR solution, especially reutilisation."

Further details on the timeline of the study were not provided.

Pertamina's collaboration with KNOC could extend further to other low-carbon business ventures, such as the development of "rig-to-wind farm, rig-to-fish farm and rig-to-LNG terminal to transport natural gas to locations where energy facilities are yet to be established," said Pertamina's senior vice-president of research and technology innovation, Oki Muraza.

Indonesia aims to reach net zero emissions by 2060 and CCS projects are strategic as Indonesia has "substantial potential for CO2 capacity," said Pertamina's vice-president of corporate communications Fadjar Djoko Santoso. But "CCS development requires significant investment," he added. "Hence, global co-operation is necessary."

Other southeast Asian firms are similarly entering into cross-border CCS collaborations. Thai state-controlled upstream firm PTTEP earlier this month signed an agreement with Japanese upstream firm Inpex to study the potential of carbon storage in the northern Gulf of Thailand, under a collaboration between the Thai Department of Mineral Fuels and Japan's state-owned energy agency Jogmec. The study aims to "lay [the] foundation for a potential development of a CCS hub in the Eastern Economic Corridor of Thailand," said PTTEP.

The CCS hub is aimed at reducing CO2 emissions from the PTT group's operational sites in Rayong and Chonburi as well as nearby industrial areas, according to PTTEP, in line with the country's net zero by 2065 goal. It is meant to reduce 6mn-10mn t/yr of CO2 from the Map Ta Phut industrial estate, said state-controlled PTTEP's senior vice-president of carbon and energy solutions Nopasit Chaiwanakupt at the UN Cop 28 climate summit in November 2023. The initial final investment decision is scheduled to take place in 2027, with commercial operations to begin in 2030.

By Prethika Nair