The San Ramon, CA-based American multinational energy company, Chevron Corporation CVX, recently announced a partnership with the Indonesian state-owned oil and natural gas entity, PT Pertamina, for the possible exploration of lower-carbon commercial opportunities in the South-East Asian country of Indonesia.

The collaboration intends to serve the local and regional customers. Chevron and Pertamina plan to contemplate new geothermal technologies, carbon offsets through nature-based solutions, carbon capture, utilization and storage along with lower-carbon hydrogen development, production, storage and transport.

The partnership follows the signing of a Memorandum of Understanding in Washington, DC, attended by key personnel from both the organizations.

Jeff Gustavson, President of Chevron New Energies, mentioned that Chevron is excited to build on its 100-year history in the country and that this partnership validates both Chevron’s and Pertamina’s commitment to recognizing lower-carbon prospects through collaboration with partners having shared interests. “Through our potential work in Indonesia, and the entire Asia Pacific region, we hope to provide affordable, reliable, ever-cleaner energy, and help the industries and customers who use our products advance their lower carbon goals,” he added.

This tie-up between CVX and Pertamina is part of the push from both entities to support the Indonesian government’s net-zero emission objective in 2060. Pertamina is dedicated to expanding its renewable energy mix from 9.2% in 2019 to 17.7% in 2030.

President Director & CEO of Pertamina, Nicke Widyawati, stated that his organization is committed to fast-tracking the energy transition aligned with the government's targets and that this strategic partnership with Chevron brings synergies for the development of lower-carbon energy projects and solutions to promote energy independence and domestic energy security.

Indonesia, which boasts of the second-largest installed capacity of geothermal energy in the world, has been developing renewable energy since 1974. The Government of Indonesia too acknowledged the significance of a collaborative method to accomplish lower-carbon targets.

Chevron is one of the largest publicly traded oil and gas companies in the world, with operations spanning worldwide. The only energy component of the Dow Jones Industrial Average, CVX is fully integrated as it participates in every aspect related to energy, from oil production to refining and marketing. The company generates around $95 billion in annual revenues and produces more than three million barrels per day of oil equivalent. It currently churns out oil and natural gas at a 59/41 ratio. As of the end of 2021, the company had proved reserves of approximately 12.4 billion barrels of oil equivalent.