Indonesia’s Pertamina Fortifies Energy Transition Partnership With SINOPEC

PT Pertamina (Persero) is deepening its collaboration with SINOPEC, a Chinese state-owned energy company, to expedite its commitment to energy transition and bolster global business development.

The Memorandum of Understanding (MoU) was signed between Nicke Widyawati, President Director & CEO of PT Pertamina (Persero), and Ma Yongsheng, Chairman of Sinopec Group, in Shanghai, China.

The collaboration spans various sectors, encompassing upstream to downstream activities, new and renewable energy (NRE), and human resources capabilities development.

It includes unconventional hydrocarbon development, carbon capture utilization and storage (CCUS), enhanced oil recovery (EOR), ultra-deep drilling, fuel and non-fuel businesses, lubricants, aviation, petrochemicals, transportation, and logistics.

The agreement also explores geothermal energy, hydrogen, and solar power development. The collaboration aims to accelerate Pertamina’s growth during the current energy transition era, addressing challenges posed by climate change and energy transition.

SINOPEC, with expertise in CCUS, unconventional hydrocarbons, petrochemicals, and hydrogen, provides a valuable opportunity for Pertamina’s learning and business development.

The collaboration builds on Pertamina Hulu Energi’s previous agreement with SINOPEC in the upstream sector. The cooperation is expected to reinforce their partnership’s implementation.

Ma Yongsheng, Chairman of Sinopec Group, emphasized the importance of continued cooperation for the global energy transition and encouraged both teams to strive for better collaboration.

The agreement includes the designation of chief coordinators from each side, establishing cooperation mechanisms, and planning the next phase of work.

Nicke Widyawati was also invited as a Keynote Speaker at the Sinopec Forum on “Managing Energy Transition: Through Partnership & Collaboration.” Nicke highlighted Indonesia’s challenges in achieving energy security and the nation’s strategic role in the global energy transition.

Indonesia, rich in renewable energy sources and essential materials for energy transition, plays a crucial role in Pertamina’s initiatives for energy resilience, domestic resource mobilization, and decarbonization with a Net Zero Emission (NZE) target.

The collaboration aims to unlock potential by addressing challenges such as access to competitive financing, technological advancements, early-stage funding, and improving human resource capabilities.

Pertamina is committed to supporting the Net Zero Emission 2060 target, aligning its efforts with Environmental, Social and governance (ESG) implementation across all business lines and operations.