press release Way Ratai Signing Agreements to Further Implement Collaboration between Chevron and PT Pertamina Geothermal Energy, Tbk.
Jakarta, 3 October 2023 – Consortium of Chevron New Energies through PT Jasa Daya Chevron (Chevron) and PT Pertamina Geothermal Energy, Tbk. (PGE) (IDX: PGEO) signed several foundation agreements at Park Hyatt Hotel, Jakarta which will become the basis to incorporate a local new business entity and placement of the exploration commitment fund in the joint account. The new entity will officially hold the license (IPB) of the working area and will carry out various activities in this exploration phase, which will include among others various survey works and exploration drilling.
The signing of the agreements follows the 12 June 2023 decision of the Minister of Energy and Mineral Resources regarding the determination of the consortium of PGE and Chevron as the winner of the geothermal working area (WKP) auction for Way Ratai in Lampung Province.
President Director of PT Pertamina Geothermal Energy Tbk Julfi Hadi said that “the consortium has been working with the Directorate General of New and Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources (ESDM) in the last few months to build strong legal and commercial frameworks acceptable to the consortium parties and the government of Indonesia, in alignment with the relevant regulations.”
Chevron Indonesia Country Manager Wahyu Budiarto added, “a strong legal and commercial framework is critical to executing various exploration programs and the future development of WKP Way Ratai. Chevron and PGE expect to find and confirm geothermal resources, which will be developed to produce green electricity in accordance with the existing national power electricity plan. The consortium will also explore the utilization of geothermal resources for a potential green hydrogen or green ammonia production hub in western Indonesia to supply to domestic and export markets.”
Director General of New and Renewable Energy and Energy Conservation (EBTKE), Yudo Dwinanda Priaadi welcomed this agreement and said, “this is a significant milestone for both Chevron and PGE in exploring the untapped geothermal resources in Way Ratai Block to help contribute to Indonesia’s energy transition objectives.”
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. PGE currently manages 13 Geothermal Working Areas (WKP) and 1 Assigned Working Area with an installed capacity of 1,877 MW, of which 672 MW is operated and managed directly by PGE and 1,205 MW is managed under a Joint Operation Contract scheme. The installed geothermal capacity in PGE's working areas contributes around 80% of the total installed geothermal capacity in Indonesia, with the potential to reduce CO2 emissions by around 9.7 million tons 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