Petronas partners with Exxon Mobil to explore carbon storage opportunities

A logo of a Petronas fuel station is seen against a darkening sky in Kuala Lumpur, Malaysia February 10, 2016. To match Interview PETRONAS-DOWNSTREAM/ REUTERS/Olivia Harris/File Photo

KUALA LUMPUR, Nov 9 (Reuters) - Malaysia's state energy firm, Petroliam Nasional Berhad (Petronas) (PETR.UL), said on Tuesday it has partnered with a Malaysian unit of Exxon Mobil Corp (XOM.N) to jointly explore opportunities in carbon capture and storage (CCS) technologies in a bid to decarbonise the country's upstream industry.

Exxon Mobil said last month it wants to build CCS hubs in Southeast Asia and has begun talks with countries with potential storage options for carbon dioxide. read more

According to the memorandum of understanding signed on Nov. 3, both companies will assess the viability of potential CCS projects in selected locations offshore Peninsular Malaysia and identify suitable technology for potential application, Petronas said.

The 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," Petronas said.

Reporting by Rozanna Latiff in Kuala Lumpur Editing by Matthew Lewis

Our Standards: The Thomson Reuters Trust Principles.