ESG Commitment, Pertamina Hulu Energi Signs Carbon Credit Agreement
Bali, October 18, 2022 - PT Pertamina Hulu Energi (PHE), as Subholding Upstream Pertamina, is tasked with exploring potential oil and gas resources to be produced as a contribution to national energy security and other oil and gas processed products. In carrying out its duties, PHE also applies the principles of Environment, Social, and Governance (ESG) as a basis for reliable operational activities to become a company that is environmentally sound, socially responsible, and has good governance.
In addition, as an implementation of the ESG principles, PHE has an energy transition strategy contributing to the government's efforts to achieve Net Zero emissions (NZE). The Energy Transition Strategy promotes gas as a low-emission energy source, decarbonization through energy efficiency, and switching to low-emission fuels. It also calls for Carbon Capture Utilization & Storage (CCUS), which is currently being studied for its potential to be used as an Enhanced Oil/Gas Recovery process as well as a carbon capture and storage hub by utilizing a reservoir that is no longer in production.
As one of its commitments to decarbonization efforts, PHE signed the Heads of Agreement (HOA) of Carbon Credit Trading with PT Pertamina Power Indonesia (PPI) in Bali on Tuesday (18/10). Present directly to sign the agreement, the President Director of PHE, Wiko Migantoro, and the President Director of PPI, Danif Danusaputro. The signing was witnessed by the Deputy Minister of BUMN I, Pahala Mansury, and the Director of Strategy, Portfolio, and Business Development (SPPU) of PT Pertamina (Persero), Atep Salyadi Dariah Saputra.
On this occasion, Wiko Migantoro explained that for PHE, ESG is a new opportunity for the Company to provide more benefits to the environment and society. "This decarbonization strategy is an inseparable part of ESG. This ESG commitment has also been proven through the acquisition of PHE's ESG rating, which has managed to get a rating of 24 out of 254 global oil and gas producing companies," he explained.
In addition, Wiko noted that PHE's contribution to the signed Carbon Credit Agreement, as Indonesia's largest upstream oil and gas company and a component of Pertamina's extensive value chain, will help SOEs in Indonesia achieve Net Zero Emissions by 2060.
The Ministry of SOEs held the signing ceremony on International Conference, which is part of the road to G20 event. The event was attended by the leadership of the Ministry of SOEs, the leaders of SOEs in Indonesia, and SOE leaders from various other countries.
PHE has been registered in the United Nations Global Compact (UNGC) as a participant/member since June 2022. PHE is committed to the Ten Principles of UNGC in its strategy and operations as part of implementing ESG aspects. PHE will continue to develop professional operations management at home and abroad to become a world-class oil and gas company that is Environmentally Friendly, Socially Responsible, and Good Governance.**