Eni and Pertamina sign MoU to cooperate in many areas, including a grassroots bio-refinery in Indonesia

The President Director of Indonesia’s state-owned oil and gas company PT Pertamina Nicke Widyawati, and Eni CEO Claudio Descalzi have signed a Memorandum of Understanding (MoU) to investigate synergies of their respective technologies, expertise and know-how, for jointly evaluating new collaboration opportunities in the areas of the circular economy, the driver for strategic development for Eni and its subsidiaries Syndial (Environment) and Versalis (Chemicals).

Present during the signing at Eni headquarters in Rome, Italy, was Italy’s Minister of Energy and Mineral Resources Ignasius Jonan, on 30 January 2019.

Eni and Pertamina said they are willing to discuss collaboration opportunities in low carbon products and renewable energies development. In particular, Eni and Pertamina agreed to explore opportunities and discuss collaboration in waste transformation processes and biomass valorization processes, also leveraging Eni proprietary technologies such as Waste to fuel*, Waste to hydrogen**, sewage sludge conversion into biomethane production by anaerobic digestion, advanced biofuels from biomass, and chemicals from biomass.

Furthermore, Eni and Pertamina agreed to explore and discuss collaboration in the field of recycling and re-using water treatment and re-use processes and polymer recycling technologies, also pursuing eco-design processes to maximize final products recycle.

The MoU also includes opportunities for collaboration in the research and technology development for waste valorization, CO2 biofixaton and its re-use for sustainable mobility.

Finally, Eni and Pertamina will discuss cooperation and business opportunities both in Indonesia and internationally in renewable projects.

Eni and Pertamina have also signed a Heads of Agreement for a joint venture aiming at the construction of an add-on grassroots bio-refinery in Indonesia. In the context of this partnership, key terms of a processing agreement in Italian refineries has also been signed.

This will enable HVO to reach the Indonesian Market utilizing Eni’s Ecofining Technology.

Eni has been operating in Indonesia since 2001 and currently has a large portfolio of assets in exploration, production and development. Eni is the operator of East Sepinggan Contract Area through its subsidiary Eni East Sepinggan Limited, which holds an 85% participating interest, while PT Pertamina Hulu Energi East Sepinggan holds the remaining 15%.

Production activities are located in the Kutei Basin, East Kalimantan, mainly through the Jangkrik field, in the Muara Bakau working area, that delivers production in excess of 650 mmscfd.

* Waste to fuel, which is an Eni proprietary technology able to produce biofuel from municipal waste (Organic Fraction of Municipal Solid Waste) transforming waste into bio-oil for use as a component in the production of second-generation biofuel for transport. Eni-Syndial launched the first pilot plant in Gela, Italy, last December and aims at developing industrial scale plants, disposing of a great quantity of organic waste through reuse and contributing significant environmental benefits to large urban areas.

** Waste to hydrogen is a process able to transform plastic waste into hydrogen for industrial needs or sustainable mobility.