The MoU between the two SOEs from Indonesia and China encompasses various business activities that span upstream, downstream, new and renewable energy (NRE), as well as human resource development. In the upstream sector, Pertamina and Sinopec will expand their collaboration in activities such as unconventional hydrocarbon development, carbon capture utilization and storage (CCUS), enhanced oil recovery (EOR) and ultra-deep drilling. This part of the cooperation also includes strengthening research and development activities as well as upstream business development. Meanwhile, collaboration in the downstream sector encompasses fuel businesses, non-fuel businesses, lubricants, aviation, petrochemicals, transportation and logistics. As part of the NRE sector collaboration, both parties will explore the potential for geothermal, hydrogen and solar power development. Additionally, there is an agreement to enhance both parties’ development capabilities.

During the event, Nicke emphasized the importance of collaboration with strategic partners to accelerate Pertamina's business during the current era of energy transition.

"Collaboration with crucial partners is essential amid the challenges posed by climate change and energy transition to address those issues, as well as to expedite the growth of Pertamina's business through knowledge and technology transfers."

Nicke further explained that Sinopec is an international oil and gas company with expertise in CCUS, unconventional hydrocarbons, petrochemicals, hydrogen and more. This allows Pertamina to learn from Sinopec and develop its business.

Previously, Pertamina subsidiary Pertamina Hulu Energi had signed a cooperation agreement with Sinopec's upstream sector. Therefore, the current collaboration is expected to strengthen the implementation of cooperation between the two companies.

Sinopec Group chairman Ma reinforced the sentiment of mutually beneficial collaboration, stating that Sinopec recognizes its importance. He believes that the global energy transition requires sustained collaboration and urged teams from both firms to strive for better cooperation, and personally arranged for Pertamina’s senior representatives to visit the Shengli oil field. After introducing Sinopec's leading technologies in deepwater and ultradeepwater exploration and development, shale oil and gas, renewable energy, as well as CCUS, Ma proposed the appointment of key coordinators from both firms, the establishment of a cooperation mechanism in line with their MoU, and the initiation of the next phase of work as soon as possible. Finally, Ma invited Nicke to visit the Sinopec Group headquarters in Beijing.

In addition to signing the cooperation agreement with Sinopec, Nicke was also invited as a keynote speaker to the Sinopec Forum, which had "Managing Energy Transition: Through Partnership & Collaboration” as its theme.

Nicke explained that Indonesia still faces several challenges in achieving energy security, such as dependence on fossil fuels, declining oil production and continuous increases in national energy demand.

"Energy security is a top priority for Indonesia, so we need to reduce dependence on imports by diversifying energy, optimizing local energy resources and expanding access to cleaner energy sources," Nicke said.

According to Nicke, Indonesia is a strategic link in the global supply chain in the energy transition because it is rich in renewable energy sources and essential materials needed for energy transition, such as nickel, bauxite and copper, which provide the country with the potential for NRE, nature-based solutions (NBS) and CCUS.

Nicke explained that Pertamina plays three crucial roles in shaping the energy landscape to harness Indonesia's significant potential. First, ensuring Indonesia's energy resilience by increasing energy supply capacity to support economic growth. Second, mobilizing domestic resources to reduce the oil and gas trade deficit by increasing the use of domestic energy sources. Third, decarbonizing, improving energy efficiency, and enacting energy transition to achieve its net-zero emissions (NZE) target.

"Pertamina has developed a comprehensive strategic initiative, which includes operational decarbonization, establishment of low-carbon emissions businesses, and implementation of carbon-reduction programs. Our strong support for [achieving] NZE involves transforming how we conduct business and manage company operations to prioritize sustainability," said Nicke.

However, Nicke noted that Indonesia still faces obstacles in accelerating the energy transition, such as in access to competitive financing, technological progress, early-stage funding and in improving human resource capabilities.

"Therefore, we recognize the importance of the right support and encouragement through strategic partnerships to truly succeed in the energy transition. I believe that sustainable business is built through the strength of collaboration and partnerships," Nicke concluded.

After attending the forum, Sinopec invited the Pertamina team to introduce the CCUS project it operates in the Shengli oil field, its chemical enhanced oil recovery operation to enhance hydrocarbon production and reserves, as well as laboratory equipment for and significant achievements in unconventional hydrocarbons. Both parties discussed these projects in depth to unlock collaboration potential between the two companies.

As a leading company in the energy transition, Pertamina is committed to supporting Indonesia’s goal of NZE by 2060 by continually promoting programs that directly impact the achievement of Sustainable Development Goals (SDGs). All these efforts are in line with the implementation of environmental, social and governance (ESG) principles across all of Pertamina's business lines and operations.

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