TANGERANG - The topic of energy transition remains at the forefront of discussions as the demand for fossil fuels, particularly oil and gas, continues to rise. A vital component for ensuring the sustainability of the oil and gas sector is the implementation of Carbon Capture Storage (CCS) technology.
Mohd Jukris Abdul Wahab, Executive Vice President & CEO of Upstream PETRONAS, emphasized that while PETRONAS is focused on enhancing its upstream oil and gas business portfolio, the groundwork for CCS implementation is also underway. He noted that CCS not only supports the upstream oil and gas activities but can also evolve into a stand-alone business, highlighting substantial future business potential for this technology.
"We have a clear energy transition strategy at PETRONAS, with a strong emphasis on decarbonization. CCS represents an efficient solution and is integral to our energy transition agenda. Specifically, we have designated CCS as a stand-alone business," stated Jukris during the Global Executive Talk session at IPA Convex 2025 on Tuesday (20/5/2025).
Currently, PETRONAS is spearheading a CCS hub project in collaboration with partners from Japan, South Korea, and Singapore to position Malaysia as a key CO₂ storage site. However, Jukris acknowledged that the primary challenge in implementing CCS lies in the associated high costs. "Costs represent a significant barrier—encompassing the processes of capturing CO₂, transportation, processing, and offshore storage. Therefore, our current focus is on establishing a robust commercial framework at each stage to ensure economic viability," Jukris explained.
Hilmi Panigoro, President Director of PT Medco Energy International Tbk (MEDC), corroborated the importance of CCS in the context of energy transition, particularly within the oil and gas sector. While he recognized the cost challenges associated with CCS implementation, he remains optimistic that advancing technology will lead to cost reductions, thus encouraging Medco to pursue CCS initiatives.
"This ultimately comes down to a cost-benefit analysis. We will integrate systems to reduce CO₂ emissions as long as the costs remain manageable and the projects are economically sustainable," Hilmi affirmed.
Mansoor Mohamed Al Hamed, Managing Director and CEO of Mubadala Energy, articulated that the ongoing energy transition is closely aligned with the company's strategic emphasis on gas development. He asserted that this strategy corresponds with Indonesia's energy resilience roadmap, indicating that it is highly appropriate for Mubadala Energy to consider Indonesia as part of its investment portfolio.
Currently, Mubadala Energy is garnering attention within the domestic oil and gas industry following the discovery of substantial gas reserves in the Layaran-1 and Tangkulo-1 exploratory wells located in the South Andaman Working Area, with multi-TCF potential. The company has also reported gas discoveries in Andaman II, where Harbour Energy serves as the operator.
"We are concentrating on the gas value chain because it plays a critical role in ensuring energy resilience, especially in the region of Indonesia. Our discoveries of significant resources are vital for national energy resilience and are in alignment with our energy transition agenda," Mansoor elaborated.(***)
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