Exxon Mobil Corporation (NYSE:XOM) and state energy firm Pertamina reportedly plan to perform appraisal drilling for a carbon capture and storage (CCS) hub in Indonesia.

The companies partnered for preliminary work to design a commercial model for the Asri Basin Project CCS hub, reported Reuters.

As per a preliminary joint study by Pertamina and Exxon, the Asri basin in Pertamina's Offshore South East Sumatra block could store up to 3 gigatonnes of carbon dioxide and would require investments of $2 billion.

The companies also inked a framework agreement with South Korea's KNOC, allowing it to join the partnership and inject emissions into the facility.

As per the report, Indonesia allowed CCS operators to set aside 30% of their storage capacity for imported carbon and estimates its depleted oil and gas reservoirs and saline aquifers to provide storage for hundreds of gigatonnes of CO2.

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Last week, Exxon completed the acquisition of Pioneer Natural Resources, doubling Permian production.

Investors can gain exposure to the XOM stock via Energy Select Sector SPDR Fund (NYSE:XLE) and IShares U.S. Energy ETF (NYSE:IYE).

Price Action: XOM shares are up 0.33% at $118.06 at the last check Wednesday.

Photo: Del Henderson Jr. via Shutterstock