Pertamina and Chinese Energy Company Establish Oil and Gas Business Cooperation

JAKARTA - PT Pertamina (Persero) is collaborating with China's state-owned energy company, Sinopec, to accelerate its energy transition commitment and increase opportunities for global business development.

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, from upstream, downstream, to new & renewable energy (NRE), to developing human resource capabilities.

Nicke Widyawati explained, 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," said Nicke in a statement to the media, Monday, November 13.

Meanwhile, collaboration in the downstream sector includes both the 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.

Nicke 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.

Chairman of Sinopec Group, Ma Yongsheng said, Sinopec highlights the importance of mutually beneficial cooperation.

He believes 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.