Malaysian national oil company Petronas has signed an agreement with ExxonMobil to jointly explore carbon capture and storage (CCS) technologies to help decarbonise Malaysia’s upstream industry and to provide carbon dioxide storage solutions for the region.

Petronas said the Memorandum of Understanding with ExxonMobil's Malaysian subsidiary will lead to an assessment of potential CCS projects at diverse locations offshore Peninsular Malaysia, and identify suitable technology.

The two companies will also share subsurface technical data to enable CO2 storage assessment and characterisation.

Relevant data related to pipelines, facilities and wells will also be shared to evaluate potential reutilisation of existing infrastructure for transport and storage in selected locations.

ExxonMobil has had an upstream presence in Malaysia for decades, and operates dozens of offshore platforms and numerous fields, with Peninsular Malaysia its stronghold.

Adif Zulkifli, Petronas' executive vice president and chief executive of Upstream said the collaboration would potentially helping the company reach its net zero carbon emissions by 2050.

Targets include having first offshore CCS project readied for CO2 injection in 2025.

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