Page 8 - AsianOil Week 19 2022

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Chevron, ExxonMobil sign separate deals

with Pertamina on low-carbon opportunities

ENERGY SUPER-MAJORS Chevron and ExxonMobil COP 26 climate change summit in late 2021. This
TRANSITION said in separate announcements this week that week, ExxonMobil and Pertamina signed a joint
they had signed agreements with state-owned study agreement to assess potential for the large-
Pertamina to explore low-carbon opportunities scale implementation of lower-emission tech-
in Indonesia. nologies. According to ExxonMobil’s statement,
The agreements come as Indonesia works to these include CCUS and hydrogen production.
achieve a goal of net-zero emissions by 2060. The “Pertamina, as the largest state-owned energy
country is aiming to raise the share of renewables company in Indonesia, remains committed to
in its energy mix from around 12% currently to accelerating energy transition in accordance
23% by 2025 and is also exploring other ave- with the government’s targets,” stated Pertami-
nues for decarbonisation, including geother- na’s president, director and CEO, Nicke Widya-
mal power and carbon capture, utilisation and wati, in the announcement released by Chevron.
storage (CCUS). Pertamina is currently trialling According to that statement, the Indonesian
a binary geothermal power plant and aims to company is looking to CCUS to decarbonise the
double its geothermal capacity from 700 MW Gundih and Sukowati oil and gas fields in par-
currently by 2027-28. ticular, and is also assessing the commercialisa-
Under a memorandum of understanding tion of CCUS in the Sumatra region.
(MoU) signed between Pertamina and Chevron “Expansion of carbon capture and storage
New Ventures, the two companies will partner to in Southeast Asia would support a lower car-
explore a variety of options including new geo- bon future,” stated ExxonMobil Low Carbon
thermal technologies, CCUS, clean hydrogen Solutions’ president, Dan Ammann, in the
and carbon offsets via nature-based solutions. ExxonMobil announcement. “Governments,
Meanwhile, the partnership with Exxon- the private sector and communities will need to
Mobil builds on a previous MoU signed at the work hand in hand to make this a reality.”™

IEC strikes oil at latest well

in Indonesia’s Kruh block

PERFORMANCE INDONESIA Energy Corp. (IEC) announced company has plans to drill a further two wells at
on May 11 that it had discovered oil at the latest the block in the second half of the year.
well it has drilled in the Kruh block on Indone- According to the announcement, Kruh 27
sia’s Sumatra Island. is anticipated to start production by the end
The Kruh 27 well was spudded on April 7 and of May, while the rig that drilled the well will
reached its total depth (TD) of 3,359 feet (1,024 be moved to the next location to begin drilling
metres) on May 9. It took 32 days for the well to Kruh 28.
reach TD, which was ahead of schedule as the IEC already produces oil from five wells in
company said it had budgeted for 45 days. the Kruh block, and intends to complete a total
IEC said it had encountered roughly 132 feet of 18 new production wells by the end of 2024.
(40 metres) of oil sands in Kruh 27 at a depth of The company anticipates that the wells it is now
3,058-3,190 feet (932-972 metres). The interval drilling will each produce over 100 barrels of
was 14 feet (4 metres) thicker than anticipated, oil equivalent per day (boepd) on average over
and the company said this could mean the total their first year online. Each well is estimated to
reserve potential for Kruh 27 was also larger than cost $1.5mn to complete and generate $2.4mn
expected. in net revenue over its first year of production
Kruh 27 is the first of two back-to-back wells based on a price of $90 per barrel. Brent prices
that IEC is drilling at its 63,000-acre (255-square were higher, at above $110 per barrel at the end
km) Kruh block in the first half of 2022. The of this week.™

P8 www. NEWSBASE .com Week 19 13•May•2022