PETRONAS has signed a Memorandum of Understanding (MoU) with ExxonMobil Exploration and Production Malaysia Inc. (ExxonMobil) to jointly explore opportunities in carbon capture and storage (CCS) technologies to help decarbonise Malaysia’s upstream industry and provide CO2 storage solutions for the region.
Under the terms of the MoU, both parties will assess the viability of potential CCS projects in selected locations offshore Peninsular Malaysia and identify suitable technology within the scope of carbon capture, transport and storage for potential application.
The companies will also share subsurface technical data to enable CO2 storage assessment and characterisation. Relevant data related to pipelines, facilities and wells will also be shared to evaluate potential reutilisation of existing infrastructure for transport and storage in selected locations.
The MoU was signed and formalised on 3 November 2021. Signing on behalf of PETRONAS was its Executive Vice President and Chief Executive Officer of Upstream, Adif Zulkifli, while ExxonMobil was represented by its President and Chairman, ExxonMobil Exploration and Production Malaysia Inc., Shane Harris.
The MoU supports PETRONAS’ continuous efforts to efficiently produce and optimise its oil and gas assets to generate the resources to fund growth, facilitate progress and allow the Company to decarbonise and reduce greenhouse gas emissions. It is also one of the many efforts to position and establish Malaysia as a leading CCS solutions hub in the region.
PETRONAS is taking deliberate steps to build a resilient and sustainable portfolio to support the transition towards low-to-zero carbon energy sources. These include developing, testing, and piloting a suite of technologies at its first offshore CCS project set for CO2 injection in 2025. The Company is also pursuing more zero continuous flaring and venting of hydrocarbons to reduce emissions while continuing to reshape its portfolio mix for cleaner sources of energy.