Indonesia offers Norway oil, gas investment opportunities

Jakarta (Indonesia Window) – The Indonesian government has offered investment to develop the energy sector, especially oil and gas, to the Norwegian government, in order to realize the energy transition and carbon neutrality program in the former country.

“Norway has technology and experience in the energy sector. This is a source of strong cooperation between Indonesia and Norway,” said Director General of Oil and Gas at the Ministry of Energy and Mineral Resources Tutuka Ariadji in a statement here on Thursday.

Indonesia and Norway recently held the 9th Indonesia-Norway Bilateral Energy Consultation (INBEC) event in Oslo, Norway, on June 13, 2022, which aims to enhance bilateral cooperation in the energy sector.

Indonesia hopes to learn about Carbon Capture and Storage (CCS) technology, as well as the utilization of hydrogen, and offshore wind that have been developed in Norway, as well as financing in the energy sector.

Indonesia also invites Norway to work together to increase the knowledge of the Ministry of Energy and Mineral Resources staff through training and industrial development programs.

In the bilateral consultation meeting, the Indonesian government explained the development of electricity, renewable energy, as well as CCS/CCUS projects and opportunities in the country.

Meanwhile, the Norwegian government describes their experience in reducing methane, as well as applying carbon dioxide capture and injection technologies.

“Indonesia learned a lot about CCS/CCUS from Norway. Based on several studies, Indonesia has a significant potential for carbon dioxide storage, around 2 gigatons in depleted oil and gas reservoirs and around 9.68 gigatons in the South Sumatra and West Java basins,” Tutuka explained.

A depleted reservoir is the one below the surface of a sand or rock formation that has previously produced oil or gas and is used to store natural gas.

Currently, Indonesia is also finalizing a ministerial regulation to support the development of CCS/CCUS by involving stakeholders, including European countries, to obtain feedback and improvements to the draft that has been prepared.

According to Tutuka, Indonesia has begun to formulate a carbon neutrality roadmap starting in 2021 with emission reductions of 314 million tons in 2030 and 1,526 million tons in 2060.

In addition, the government is also intensifying programs to bridge the energy transition from fossil fuels to renewable energy.

“To support the energy transition, collaboration is needed,” Tutuka said.

The G20 Energy Transition has been launched as part of Indonesia’s G20 Presidency starting December 1, 2021 until the G20 Summit in November 2022.

Reporting by Indonesia Window