PIEP eyeing collaboration opportunities with BHPL in Mozambique Africa
Mozambique - PT Pertamina Internasional EP (PIEP), a subsidiary of Pertamina Hulu Energi Subholding Upstream, is partnering with Buzi Hydrocarbons Pte Ltd (BHPL), a subsidiary of PT Energi Mega Persada Tbk (EMP), to expand their global footprint and explore collaboration in the gas operations of the Buzi Block in Mozambique.Through a Non-binding Memorandum of Understanding (MoU) signed this week between PIEP and BHPL, both companies have agreed to collaborate in the early stages, include:
1. Studying and analyzing the potential cooperation in Buzi field operations for an integrated gas-to-power strategic project.
2. Sharing data based on a Confidentiality Agreement to study the field.
3. Exploring integrated potentials in upstream-midstream-downstream through gas-to-power.
Nicke Widyawati, CEO of PT Pertamina (Persero), stated, "This comprehensive study aims to understand the well's characteristics and provide insights for sustainable gas monetization integrated with gas-to-power, a transition towards cleaner energy."
The background for this collaboration lies in the high demand for electricity in South Africa, where there is a shortage of 3 Gigawatts. One of the Buzi Blocks in Mozambique has the resources to support addressing the supply shortage issue in South Africa.
This opportunity presents a favorable chance for Pertamina to take initial steps alongside BHPL to address the power supply shortage for industries.
In the initial phase, BHPL plans to commercialize gas for electricity export to South Africa. Taufan Rotorasiko, President Director of Buzi Hydrocarbon Pte Ltd (BHPL), expressed, "We believe PIEP has the required expertise and long-term strategy to develop and expedite the production and commercialization of the Buzi gas field."
Meanwhile, Jaffee A. Suardin, President Director of PIEP, stated, "The Buzi Block has several appealing upsides, and we hope to collaborate with BHPL, which has been operating in Mozambique since 2009. Based on the general data we've obtained, the gas field can be commercialized with low CO2 content reserves."
Looking ahead, Pertamina aims to synergize with its other subsidiaries in the Upstream Subholding, such as PT Pertamina Drilling Services Indonesia (PDSI), PT Elnusa Tbk (Elnusa), and other Pertamina subsidiaries like PT Pertamina Power Indonesia (PPI), to expand business in Mozambique.
"The operational scope of PIEP covers 12 countries across 4 continents, including several African countries. Hence, with the potential for collaboration in upstream oil and gas exploration and production, PIEP's expansion in field development can be even more significant. This contributes to increased production as part of national energy resilience efforts. In 2022, PIEP's production performance contributed 29% to oil and 15% to gas production in the Upstream Subholding," added Jaffee.
