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Indonesia's Pertamina, ExxonMobil plan appraisal drilling in carbon capture effort

State energy company Pertamina and U.S. major ExxonMobil strategy to perform appraisal drilling for a carbon capture and storage (CCS) center in Indonesia, with the business signing an initial storage deal with South Korea's KNOC on Wednesday.

Indonesia, which estimates its depleted oil and gas tanks and saline aquifers could provide storage for numerous gigatonnes of CO2, this year enabled CCS operators to reserve 30% of their storage capacity for imported carbon.

During the Indonesia Petroleum Association's annual conference on Wednesday, Pertamina and ExxonMobil signed an offer for preliminary work to design a business design for the Asri Basin Project CCS hub.

Pertamina Hulu Energi and ExxonMobil will perform appraisal drilling in order to gather data which will later on become a reference for the development of the hub, stated Awang Lazuardi, president of Pertamina Hulu Energi.

A preliminary joint study by Pertamina and Exxon found that the Asri basin, in Pertamina's Offshore South East Sumatra block, had the capability to store up to 3 gigatonnes of carbon dioxide and would require financial investments of $2 billion.

The business likewise signed a structure agreement with South Korea's KNOC enabling it to sign up with the collaboration and inject emissions into the center, Nicke Widyawati, chief executive of Pertamina, told press reporters on the sidelines of the conference.