PT Pertamina Geothermal Energy Tbk (PGEO) has entered into a collaboration with Chevron New Energies International and Mubadala Energy. The collaboration involves a Joint Study Agreement (JSA) to explore the geothermal potential in Kotamobagu, North Sulawesi.
The JSA aims to leverage the complementary strengths and experiences of the three companies. First, PGE is the largest producer and holder of geothermal capacity in Indonesia.
Secondly, Chevron has extensive capabilities as a multinational energy company committed to providing reliable and environmentally friendly energy.
While, Mubadala Energy has a track record of providing reliable and efficient energy for Indonesia and a commitment to actively participate in the energy transition as a leading international energy company.
“Our JSA this time aims to utilize the complementary strengths of the three parties in the development of geothermal energy in Kotamobagu,” said Julfi Hadi, the President Director of PT Pertamina Geothermal Energy Tbk, on November 14, 2023.
Wahyu Budiarto, Chevron Indonesia Country Manager, stated that this is Chevron’s fifth collaboration with Pertamina. Chevron hopes to bring technical expertise and new geothermal technology into this partnership to explore renewable energy sources in support of Indonesia’s energy transition targets.
The signing of the JSA took place concurrently with President Joko Widodo’s visit to the United States. It was witnessed by Jodi Mahardi, the Deputy Minister for Maritime Affairs & Investment Coordination; Rosan Roeslani, the Ambassador of the Republic of Indonesia to the United States; the Nicke Widyawati, President Director of PT Pertamina; and Wahyu Budiarto, Chevron Indonesia Country Manager,
The agreement provides a comprehensive framework for conducting a joint study on the development of the Kotamobagu Geothermal Working Area. This agreement is in line with the recent announcement by the Indonesian Government targeting an additional installed geothermal capacity of 3.3 GW by the end of 2030.
Geothermal electricity produced in Kotamobagu can provide an environmentally friendly energy source to supply the domestic market in Indonesia. It also has the potential to serve as electricity supply for low-carbon hydrogen or ammonia production.
The Kotamobagu Working Area is assigned to PGE Kotamobagu, a subsidiary of PT Pertamina Geothermal Energy Tbk, based on the Decree of the Minister of Energy and Mineral Resources 14.K/EK.01/MEM.E/2022. It is an area with high enthalpy value, featuring a volcanic hydrothermal system located in North Sulawesi Province with an area of 18,530 hectares.