press release
Pertamina Geothermal Energy and Chevron to Develop WKP Way Ratai
Jakarta, 27 June 2023 – PT Pertamina Geothermal Energy Tbk. (PGE) (IDX: PGEO) and PT Jasa Daya Chevron, through a joint venture to be established by both companies, plan to manage, develop, and operate the Way Ratai Geothermal Working Area (WKP) in Lampung, Indonesia.
On 12 June 2023, The Ministry of Energy and Mineral Resources officially determined the consortium of PT Pertamina Geothermal Energy (PGE) and Chevron New Energies, through PT Jasa Daya Chevron (“Chevron”), as the winner of the geothermal working area (WKP) auction for Way Ratai in Lampung Province.
Following this announcement, PGE and Chevron will establish a joint venture company as required by the applicable regulations. President Director of PT Pertamina Geothermal Energy Tbk. Julfi Hadi said, "The development of Way Ratai WKP is a testament to PGE's commitment to providing access to clean energy for all Indonesian people.
Chevron Indonesia Country Manager Wahyu Budiarto added, "The Ministry of Energy and Mineral Resources’ decision to assign the Chevron-PGE consortium to develop the Way Ratai geothermal working area reflects the government's confidence in our capabilities and marks an important milestone in Chevron's continued operations in Indonesia. Through collaboration with PGE, Chevron plans to demonstrate its expertise and commitment to developing lower carbon energy in Indonesia.
Julfi further explained that the joint venture company will handle the necessary permits and carry out exploration activities, potentially followed by construction of a Geothermal Power Plant (PLTP) in the area.
"According to the applicable laws and WKP auction regulations, PGE and Chevron will allocate exploration commitments to a joint account between the winning bidder and the government," said Julfi
Through the exploration program, Chevron and PGE will seek additional development potential to maximize the capacity of the resource which can be used for development of green hydrogen or ammonia from geothermal power in addition to electricity generation.
About PT Pertamina Geothermal Energy Tbk.
PT Pertamina Geothermal Energy Tbk. (PGE) (IDX: PGEO) is part of PT Pertamina (Persero) Subholding Power & New Renewable Energy (PNRE) which is engaged in geothermal exploration, exploitation, and production. Currently PGE manages 12 Geothermal Working Areas (WKP), 1 Geothermal Permit (IPB) for PGE Subsidiary PT Geothermal Energy Seulawah (GES), 1 Geothermal Permit (IPB) Assignment to PGE Subsidiary Kotamobagu (PGEK) with installed capacity of +1.9GW, of which 672 MW is operated and managed directly by PGE and 1,205 MW is managed under the Joint Operation Contract scheme. Geothermal installed capacity in the PGE working area contributes around 80% of the total installed geothermal capacity in Indonesia, with a potential reduction of CO2 emissions of around 9.7 million tonnes of CO2 per year.
As a world class green energy company, PGE wants to create value by maximizing end-to-end management of geothermal potential and its derivative products and participating in the national and global decarbonation agenda to support Indonesia's net zero emission 2060. PGE has excellent ESG credentials with 13 Gold PROPER award from 2011 to 2022 in the highest environmental compliance award from the Ministry of Environment and Forestry ESG Rating & Engagement.
About PT Jasa Daya Chevron
PT Jasa Daya Chevron is a local subsidiary in the Chevron group. Chevron is one of the world’s leading integrated energy companies. We believe affordable, reliable, and ever-cleaner energy is essential to 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 the industry. We are focused on lowering the carbon intensity in our operations and growing lower carbon businesses along with our traditional business lines. For more information, please visit www.chevron.com
PT Pertamina Geothermal Energy Tbk.
Muhammad Taufik
Manager Corporate Communication & Stakeholder Management
PT Pertamina Geothermal Energy Tbk.
PT Jasa Daya Chevron
Ms. Ferita Damayanti
Corporate Affairs Manager
Chevron Indonesia Business Unit
