PGE, Aceh?s SOE team up to develop geothermal

State owned oil and gas firm PT Pertamina said that its subsidiary, PT Pertamina Geothermal Energy (PGE) and Perusahaan Daerah Pembangunan Aceh (PDPA), an enterprise owned by the Aceh provincial government, signed on Tuesday an agreement to jointly develop geothermal resources in Seulawah Agam working area.

The agreement was signed by PGE?s President Director Irfan Zainuddin and PDPA?s President Director Muhsin in the presence of Pertamina?s President Director Dwi Soetjipto and Aceh?s Governor Zaini Abdullah, Pertamina?s spokesperson Wianda Pusponegoro said in a statement.

The working area has potentials to generate up to 165 MW of power. The government has assigned PGE to develop the working area.

Both firms will set up a joint venture in which PGE will have a 75 percent interest and PDPA the remainder. In the first phase, the joint venture will carry out survey and exploration to develop the first power generation unit with a capacity of 55 MW and investment commitment of US$40 million.

The Seulawah Agam working area is located in Aceh Besar regency, spanning across several sub-districts, namely Seulimeum, Krueng Raya and Indrapuri. The project?s location is 50km southeast of Banda Aceh, the province?s capital.

Editing by Johannes Simbolon