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Pertamina eyes oil and gas, geothermal expansion in Kenya
State-owned oil and gas giant Pertamina is considering expanding into Kenya, aiming for collaboration in oil and gas and geothermal energy.
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tate-owned oil and gas giant Pertamina is considering expanding into Kenya, aiming for collaboration in oil and gas and geothermal energy.
Pertamina, through its upstream subsidiary PT Pertamina Internasional Eksplorasi dan Produksi, is exploring a potential collaboration with the National Oil Corporation of Kenya in upstream industry areas including exploration, refining and petrochemicals, as well as in downstream industries such as petroleum product trading in Kenya.
Pertamina Geothermal Energy, a publicly listed renewable energy subsidiary, also inked a memorandum of understanding (MoU) with Kenya-based Africa Geothermal International Limited (AGIL) on Sunday.
The agreement aims to explore a joint venture to develop geothermal power in Kenya's Longonot concession, which has the capacity to generate 500 megawatts (MW) of electricity, of which 140 MW are already in operational.
Previously, Pertamina signed a similar deal with Kenya’s government-owned Geothermal Development Company (GCD) and South African Guma Group.
In Nairobi on Monday, President Joko "Jokowi" Widodo welcomed Pertamina’s planned expansion in Kenya.
“I asked Kenya for help in realizing Pertamina's US$1.5 billion investment with Geothermal Development Company and Guma Group in the field of new and renewable energy and the necessity of a bilateral investment treaty between the two countries,” Jokowi said in a statement on Monday.
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Pertamina President Director Nicke Widyawati said in a statement on Monday that the joint venture between Pertamina and partners in Kenya demonstrates a commitment to the spirit of Asia-Africa relations in keeping with the spirit of the 1955 Asia-Africa Conference.
Nicke also said the cooperation with African oil and gas companies would also help strengthen domestic energy security.
“Spirit brings the barrel home. Our footprint in the upstream sector will increase production so it can be processed in our local refinery,” Nicke said.
She went on to say that Pertamina's cooperation with Kenya encompasses both upstream and downstream businesses, and that Pertamina welcomes all geothermal development opportunities in Kenya.
Nicke added, Pertamina saw more expansion opportunities following government to government cooperation with Kenya, saying this also opens more ways to expand the company’s business in other parts of Africa.
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Pertamina Vice President Fadjar Djoko Santoso added that the company brought several of its subsidiaries along on the trip to Africa. He said the company was open to all business opportunities that could benefit both Pertamina and the country with which it would collaborate.
Nicke said in a statement on Tuesday that Africa is the new epicenter of economic development, so it should foster a favorable investment climate.
He added that Kenya is the foremost country in Africa in terms of geothermal development, with an installed capacity of 865 MW, and ranks 7th on the global list.
