PGE to have 75% stake in Aceh geothermal project
Friday, June 2 2017 - 11:26 AM WIB
PT Pertamina Geothermal Energy (PGE), a subsidiary of state-owned oil and gas company PT Pertamina, and Perusahaan Daerah Pembangunan Aceh (PDPA), a company owned by the Aceh provincial administration, are set to soon set up a joint venture company that would develop the Seulawah Agam geothermal working area in the province.
President Director of PGE, Irfan Zainudin told Petromindo.com on Friday that the two companies have reached agreement on the final draft of the proposed joint venture (JV) company, which is currently in the process of approval by the board of directors of each company.
He said that PGE will have a 75 percent interest in the JV company, called PT Geothermal Energy Seulawah (GES), while the remaining 25 percent to be held by PDPA.
Irfan said that once the JV company has been approved by both firms, exploration activities will immediately start.
PGE and PDPA signed an agreement last year to jointly develop geothermal resources in the Seulawah Agam working area, which has potentials to generate up to 165 MW of power. The government has assigned PGE to develop the working area.
This portal reported previously that 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 Reiner Simanjuntak