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Chevron and Pertamina Geothermal Energy sign Way Ratai cooperation agreements
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he Chevron New Energies Consortium, through PT Jasa Daya Chevron (Chevron) and PT Pertamina Geothermal Energy Tbk (PGE) (IDX: PGEO), signed several agreements at the Park Hyatt Hotel in Jakarta on Tuesday that will form the basis for the establishment of a new local business entity and the placement of exploration commitment funds into a joint account.
The new business entity will officially become the holder of the geothermal permit (GP) for the working area and will carry out various activities in the exploration phase, including survey and exploration drilling work.
The signing of these agreements follows the decision of the energy and mineral resources minister issued on June 12, 2023, regarding the appointment of the PGE and Chevron consortium as the winners of the Geothermal Working Area (GWA) auction in the Way Ratai area of Lampung province.
PT Pertamina Geothermal Energy Tbk (PGE) president director Julfi Hadi said, "This consortium has been collaborating with the New and Renewable Energy and Energy Conservation (EBTKE) Energy and Mineral Resources Ministry Directorate General in recent months to establish a strong legal foundation and a commercially acceptable framework for both the consortium and the Indonesian government, in line with relevant regulations."
Chevron Indonesia country manager Wahyu Budiarto added, “A strong legal and commercial framework is crucial for the implementation of various exploration and development programs for the Way Ratai GWA in the future. Chevron and PGE aspire to discover and confirm geothermal resources, which will be developed to generate environmentally friendly electricity in accordance with the current national electricity plan. The consortium will also explore the utilization of geothermal resources with the potential to establish green hydrogen or green ammonia production centers in western Indonesia to supply both the domestic and export markets."
New and Renewable Energy and Energy Conservation (EBTKE) director general Yudo Dwinanda Priaadi welcomed this agreement and stated, "This is a significant milestone for Chevron and PGE in exploring untapped geothermal resources in the Way Ratai Block to assist and contribute to Indonesia in achieving its energy transition goals."
PT Pertamina (Persero) corporate communications vice president Fadjar Djoko Santoso revealed that geothermal energy development was one of Pertamina's strategic initiatives in the era of energy transition.
“This collaboration demonstrates Pertamina's ability to work with global companies. Pertamina is also striving to become a more environmentally friendly company by developing new renewable energy sources, including geothermal,” said Fadjar.
About PT Pertamina Geothermal Energy
PT Pertamina Geothermal Energy is a subholding of PT Pertamina (Persero) Power and New Renewable Energy (PNRE) that engages in the exploration, exploitation and production of geothermal energy, PT Pertamina Geothermal Energy currently manages 13 Geothermal Working Areas (GWA) and 1 Assignment Working Area with an installed capacity of 1,877 MW. Of this capacity, 672 MW is directly operated and managed by PGE, while 1,205 MW is managed under Joint Operation Contract schemes. Geothermal installed capacity in PGE working areas contributes approximately 80 percent of the total geothermal installed capacity in Indonesia, with the potential to reduce CO2 emissions by approximately 9.7 million tons of CO2 per year.
As a world-class green energy company, PGE aims to create value by maximizing the end-to-end management of geothermal potential and its derivative products while participating in national and global decarbonization agendas to support Indonesia's net-zero emissions goal by 2060. PGE holds excellent ESG credentials, having received 13 Gold PROPER awards from 2011 to 2022, the highest environmental compliance award from the Environment and Forestry Ministry in the ESG Ratings & Engagement category.
About PT Jasa Daya Chevron
PT Jasa Daya Chevron is a local subsidiary within the Chevron Group. Chevron is one of the world's leading integrated energy companies. We believe that affordable, reliable and ever-clean energy is crucial for achieving a more prosperous and sustainable world. Chevron produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance our business and industries. We are focused on reducing carbon intensity in our operations and growing low-carbon businesses alongside our traditional business lines. For more information, please visit www.chevron.com.
