PT Pertamina Geothermal Energi (PGE) and PT Jasa Daya Chevron had won the tender for the Way Ratai geothermal working area (WKP) in Lampung.
The Ministry of Energy and Mineral Resources considers PGE and Jasa Daya Chevron as the winning bidder based on the exploration commitment proposed worth US$ 28.85 million (IDR 430.6 billion).
“The auction winner, as intended, must carry out obligations according to laws and regulations,” said Dadan Kusdiana, Director General of EBTKE, on Thursday, June 22, 2023.
Harris Yahya, Director of Geothermal at the Ministry of Energy and Mineral Resources, said that the value offered by the two PGE-Chevron consortium was higher than that of PT Ormat Geothermal Indonesia, which was US$ 25.1 million.
The winner of the Way Ratai WKP will obtain a geothermal license (IPB) as a sales instrument with PT Pembangkit Listrik Negara (PLN) (Persero) through a pre-transaction agreement.
The Way Ratai WKP is located in Lampung on an area of 70,710 hectares (ha) with a reservoir temperature of 203 to 247 degrees Celsius. Meanwhile, the geothermal energy potential that can be generated can reach up to 55 megawatts (MW) with reserves of up to 100 MW.
Funding from capex
Previously, PGE received sizable funding earlier this year through an initial public offering (IPO) on February 20, 2023. The company raised IDR 9.05 trillion by offering 103 billion shares, each valued at IDR 875.
The company will use most of the total funds received for business development purposes up to 2025. As many as 55% of the funds will be used for capital expenditure (Capex) for investment in additional capacity development.
Another 33% will be used for capacity building investment through conventional development and utilization of cogeneration technology to anticipate new market needs.
As much as 12% of the fund will be used for investment in the development of digital capabilities, analytics and reservoir management to support production, operation and maintenance excellence.
Meanwhile, the remaining fund will be used to pay part of the company’s syndicated loan.
