Chevron And PGEO Consortium Will Develop Way Ratai Lampung Geothermal

Illustration. (Photo: Doc. Antara)

JAKARTA - PT Pertamina Geothermal Energy Tbk (PGEO) and Chevron New Energies through PT Jasa Daya Chevron (Chevron) signed several agreements at the Park Hyatt Hotel, Jakarta. This cooperation agreement will be the basis for the formation of a new local business entity and the placement of exploration commitment funds in shared accounts.

"The new business body will officially hold the Geothermal License (IPB) for the working area and will carry out various activities at the exploration stage, including various exploration survey works and drilling," said PGEO President Director, Julfi Hadi, quoted Wednesday, October 4.

He continued, the signing of the agreement was carried out following the decision of the Minister of Energy and Mineral Resources issued on June 12, 2023 regarding the determination of the PGE and Chevron consortiums as winners of the auction for the geothermal working area (WKP) in the Way Ratai area, Lampung.

He added that this consortium has collaborated with the Directorate General of New Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources (ESDM) in recent months to build a strong legal basis and a commercial framework that can be accepted by parties in the consortium and government of Indonesia, and also in line with related regulations.

Meanwhile, Chevron Indonesia through Country Manager Wahyu Budiarto added that a strong legal and commercial framework is very important to implement various WKP Way Ratai exploration and development programs in the future.

"Chevron and PGE hope to find and confirm geothermal resources, which will be developed to produce environmentally friendly electricity in accordance with the current national electricity plan. This consortium will also explore the use of geothermal resources that have the potential to build green hydrogen or green ammonia production centers in western Indonesia to supply domestic markets and exports," Wahyu explained.

Present on the same occasion, the Director General of New Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources (ESDM) Yudo Dwinanda Priaadi welcomed this agreement.

"This is an important milestone for Chevron and PGE in exploring geothermal resources that have not been utilized in Block Way Ratai to help and contribute to Indonesia in achieving its energy transition goals," concluded Yudo.