Malaysian oil and gas company Petronas has signed two project development agreements with US energy major ExxonMobil’s Malaysian unit, ExxonMobil Exploration and Production Malaysia, to jointly develop carbon capture and storage (CCS) activation projects in Malaysia.
As per the agreements, the two firms will outline the next steps to be taken by them.
These steps include the maturation of technical scopes for the CCS value chain, analysis of the identified fields for CO₂ storage utilisation, developing a suitable commercial framework, and setting up advocacy plan support on regulations and policy development to enable CCS projects.
The agreements were signed by Petronas head of carbon management Emry Hisham Yusoff and ExxonMobil president Shane Harris.
Petronas executive vice-president and chief executive officer of upstream Datuk Adif Zulkifli, ExxonMobil Low Carbon Solutions president for Asia Pacific Irtiza Sayyed, and ExxonMobil Low Carbon Solutions vice-president for Asia Pacific Tracy Lothian were also present at the signing event.
Emry Hisham said, “Petronas is proud to work with its long-standing partner, ExxonMobil, to pursue CCS projects together, aligning our shared aspiration to deliver energy solutions in a responsible and sustainable manner.
“This collaboration further strengthens Petronas’ commitment in providing decarbonisation solutions, aligned with our aspiration in establishing Malaysia as a leading CCS hub in the region.”
These agreements come after a memorandum of understanding (MOU) was signed between both firms in November 2021.
The latest move is part of Petronas’s strategy to develop a sustainable portfolio, with new solutions to generate energy responsibly.
Earlier this month, Petronas signed three production-sharing contracts for discovered oil and gas resources under the Malaysia Bid Round (MBR) 2022.
The latest development from ExxonMobil comes after it agreed to divest its stake in Esso Thailand to Thai energy firm Bangchak.