New decarbonization milestone for Asian player as oil & gas assets benefit from solar panels

August 15, 2025, by Melisa Cavcic

PT Medco Energi Internasional (MedcoEnergi), an Indonesian-based energy and natural resources company, has achieved a significant sustainability milestone, slashing its Scope 1 and 2 greenhouse gas (GHG) emissions by up to 1.5 million tons of CO2 equivalent (CO2e), compared to its 2019 baseline.

FPSO Marlin Natuna; Source: Medco Energi

MedcoEnergi has exceeded its decarbonization target ahead of schedule, surpassing its 2025 target of 1.08 million tons CO2e, or 20% of total emissions in the base year, as part of its long-term plan to achieve net zero Scope 1 and 2 GHG emissions by 2050 and Scope 3 by 2060.

Ronald Gunawan, Director & Chief Operating Officer of MedcoEnergi, highlighted: “Emission reduction is part of our efforts to enhance overall operational efficiency. MedcoEnergi continues to carry out various emission reduction initiatives in parallel with our day-to-day field operations.”

The Indonesian player has undertaken various initiatives to enable this decarbonization achievement, including efficiency and emission reduction programs across its operational areas in Indonesia and international assets.

MedcoEnergi implemented 43 initiatives across its assets in 2024, with estimated peak annual GHG emission reductions reaching 181,727 tons CO2e, with the largest contribution from flare avoidance activities in the Corridor Block, amounting to 53,713 tons CO2e.

According to the firm, these emission reductions were achieved through production process optimization to improve gas fuel efficiency and reduce methane emissions, with solar PV panels installed to support energy needs on several offshore platforms in the South Natuna Sea Block B and Sampang Block. Recently, two oil and gas fields were put into production mode off the coast of Indonesia.

Two ‘strategic’ oil & gas fields come online offshore Indonesia

Exploration & Production

While solar PV panels were deployed in onshore asset operations in Indonesia, the conversion from diesel generators to grid-based power supply was implemented in Oman, the Grati Facilities (East Java), and the Rawa Gas Plant (South Sumatra), alongside biodiesel, which was used for supply vessels in Thailand.

“Emission reduction efforts are conducted in compliance with applicable technical and environmental standards. These initiatives will continue and expand in line with the company’s transformation towards more efficient and lower-carbon operations,” concluded Gunawan.