Korea National Oil Corporation Signs CCS Demonstration Project Agreement with Indonesian State-Owned Oil Company

Demonstration Project for Conversion of Depleted Oil and Gas Fields into Carbon Dioxide Storage Sites

Expansion of Bilateral Cooperation in CCS and Promotion of Cross-National Carbon Reduction Projects

Korea National Oil Corporation (President Kim Dong-seop) is entering Indonesia for a CCS (Carbon Capture and Storage) demonstration project.

On the 10th, at the Lotte Hotel in Seoul, President Kim Dong-seop and Nicke Widyawati, CEO of Indonesia's state-owned oil company Pertamina, signed a Joint Survey Agreement (JSA) to promote a CCS conversion demonstration project for oil and gas fields in Indonesia.

Following the MOU signed last September during the President's state visit to Indonesia for joint CCS research, oil development, and low-carbon business cooperation with Pertamina, the corporation is now advancing the JSA project.

A signing ceremony for a joint demonstration study on CCS conversion at the Indonesia oil and gas field between Korea National Oil Corporation and Pertamina is taking place. (4th from the left: Pertamina CEO Nicke Widyawati, 5th: Korea National Oil Corporation President Kim Dong-seop)

This JSA project involves jointly conducting a feasibility study for applying CCS projects to multiple oil and gas fields located offshore northwest of Java Island, Indonesia. Based on these results, the project will link to CCS projects that repurpose depleted oil and gas fields in Indonesia as carbon dioxide storage sites.

The corporation plans to promote the CCS demonstration project in Indonesia alongside the CCS demonstration project utilizing the Donghae Gas Field, sharing demonstration data to create mutual synergy. It is expected to serve as an opportunity to expand CCS projects and enable Korea-Indonesia carbon reduction projects involving the corporation and domestic high carbon-emitting companies in the long term.

President Kim Dong-seop of the corporation stated, “We will maximize the technological capabilities we possess and accumulate extensive CCS demonstration experience to strengthen the CCS project network in strategic Asian regions.”

He added, “Through the successful promotion of CCS projects, we will actively contribute to achieving the national greenhouse gas reduction targets.”

Additionally, through the ‘Donghae Gas Field CCS Demonstration Project’ (led by the Ministry of Trade, Industry and Energy with cooperation from the Ministry of Oceans and Fisheries), which was selected as a preliminary feasibility study target on the 5th, the corporation plans to lead the development of the domestic CCS industry ecosystem, including carbon dioxide capture, terminal and storage operation, and injection facility construction.

Furthermore, it is planning a CCS industry roadmap for joint entry into overseas carbon dioxide storage projects.

Although regulations related to CCS projects had been scattered across individual laws, with the recent passage of the Act on Carbon Capture, Utilization, and Storage (CCUS Act) by the National Assembly, CCS projects promoted by the corporation are expected to gain momentum in the future.

This content was produced with the assistance of AI translation services.