PGE allocates up to $150m to finance exploration programs this year

By Bernard Loebs

PT Pertamina Geothermal Energy (PGE), a subsidiary of state-owned oil and gas firm PT Pertamina, plans to carry out geothermal survey at the Gunung Lawu geothermal area, which spans East and Central Java provinces, and at the Seulawah Agam geothermal working area in Aceh Province this year.

PGE President Director Irfan Zainuddin told Petromindo.com on Thursday that the company also plans exploration drilling at one well in Bukit Daun geothermal working area in Bengkulu Province.

He added that the company has allocated capital expenditure of US$90 million-$150 million to finance the exploration programs. He did not provide further details.

PGE won the Gunung Lawu geothermal area in February of this year. The more than 60,000-ha Gunung Lawu geothermal area has an electricity generation capacity potential of 165 MW.

The company signed in May an agreement with Perusahaan Daerah Pembangunan Aceh (PDPA), an enterprise owned by the Aceh provincial government to jointly develop geothermal resources in Seulawah Agam working area, which has potentials to generate up to 165 MW of power. 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, according to a previous report in this portal.

Editing by Reiner Simanjuntak