Signing of Way Ratai Agreements as Follow-Up to Collaboration between Chevron and PT Pertamina Geothermal Energy Tbk

Jakarta, October 3, 2023 – The Chevron New Energies Consortium, through PT Jasa Daya Chevron (Chevron) and PT Pertamina Geothermal Energy Tbk (PGE) (IDX: PGEO), has signed several agreements at the Park Hyatt Hotel, Jakarta. These agreements will form the basis for a new local entity establishment and exploration commitment funds placement in a joint account. The new entity will officially hold the Geothermal Permit (IPB) for the working area and carry out various activities in the exploration phase, including surveys and exploration drilling works.

These agreements signing follow the Minister of Energy and Mineral Resources’ decision, issued on June 12, 2023, regarding the PGE and Chevron consortium appointment as the winners of the Geothermal Working Area (WKP) bidding in the Way Ratai region, Lampung Province.

Julfi Hadi, CEO of PT Pertamina Geothermal Energy Tbk (PGE), stated, "This consortium has been working with the Directorate General of New and Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources (EMR) for the past few months to establish a strong legal foundation and a commercially acceptable framework for the consortium and the Indonesian government, following the relevant regulations."

Wahyu Budiarto, Country Manager of Chevron Indonesia, added, "A strong legal and commercial framework is essential to carry out various exploration and development programs in the Way Ratai WKP in the future. Chevron and PGE hope to discover and confirm geothermal resources, which will be developed to generate environmentally friendly electricity following the existing national electricity plans. This consortium will also explore geothermal resources utilization with the potential to establish green hydrogen or green ammonia production centers in western Indonesia to supply domestic and export markets."

Yudo Dwinanda Priaadi, Director General of New and Renewable Energy and Energy Conservation (EBTKE), welcomed this agreement, stating, "This is a significant milestone for Chevron and PGE in exploring untapped geothermal resources in the Way Ratai Block to assist and contribute to Indonesia's energy transition goals."

Fadjar Djoko Santoso, Vice President of Corporate Communication of PT Pertamina (Persero), said geothermal energy development is one of Pertamina's strategic initiatives in the energy transition era. 

"This collaboration demonstrates Pertamina's ability to work with global companies. Pertamina is also striving to become a more environmentally friendly company by developing new renewable energy sources, including geothermal," said Fadjar.