PLN Officially 'Seizes' The Rokan Block Power Plant From Chevron, President Director: We Will Connect It To Sumatran Electricity

JAKARTA - PT Perusahaan Listrik Negara (Persero) or PLN has officially acquired the Rokan Block power plant with a capacity of 300 Mega Watts (MW). The power plant is managed by PT Mandau Cipta Tenaga Nusantara or MCTN.

The acquisition was marked by the signing of the Conditional Sale & Purchase Agreement (SPA) or the Share Purchase Agreement (PJBS) between PLN and Chevron Standard Limited (CSL) which was held on Tuesday, July 6.

PLN President Director, Zulkifli Zaini, said that with the signing of this SPA, PLN will ensure the supply of electricity to the Rokan Block when PT Pertamina (Persero) through its business unit PT Pertamina Hulu Rokan (PHR) takes over the management of this block from Chevron Pacific Indonesia next month, to be exact. August 9, 2021, will go smoothly.

Furthermore, Zulkifli said that the takeover of 100 percent of MCTN shares was a strategic step for the company to maintain production continuity in the Rokan Block working area. For your information, Chevron Standard Limited (CSL), an affiliate of Chevron, previously owned a majority stake in MCTN, which was 95 percent.

"This morning we witnessed the signing of PT MCTN, the electricity supplier in the Rokan working area, between PLN and Chevron Standard Limited. This is a strategic point to ensure the sustainability of production in the Rokan work area", he said in a virtual press conference, Tuesday, July 6.

The acquisition process itself is carried out in two stages. The first stage is through SPA, where MCTN will become part of a state-owned company. So that PLN management will continue to operate the MCTN in the short term, namely for the next 3 years or in the transition period.

Then, continued Zulkifli, in the second phase, the company will connect the Sumatra Regional electricity system with the Rokan Block.

"We will connect the Rokan Block with the Sumatra electricity system so that in the 4th year and the next year, electricity for the Rokan Block will be supplied with PLN electricity from the Sumatra Region," he said.

For your information, the MCTN power plant with a capacity of 300 Mega Watt (MW) has been built 20 years ago with an investment value of around 190 million US dollars or around IDR 2.7 trillion, assuming an exchange rate of IDR 14,500 per dollar.

Meanwhile, PLN and CSL are said to have communicated to acquire CSL's shares in MCTN since November 2020.