Committed to Carry Out Geothermal Resource Exploration in South Sumatra, Chevron and Pertamina Geothermal Energy Agree on Joint Study Agreement
Jakarta, July 13, 2023 - To realize the commitment to develop the geothermal resources and green hydrogen potential projects in South Sumatra, PT Pertamina Geothermal Energy Tbk. (PGE) (IDX: PGEO) and Chevron New Energies International (Chevron) have signed a Joint Study Agreement (JSA) to investigate additional geothermal resources in several areas in South Sumatra. The signing took place during the opening ceremony of the "Indonesia Renewable Energy and Energy Conservation (EBTKE) Conference and Exhibition 2023" on Wednesday, July 12, 2023, at the Indonesia Convention Exhibition (ICE), BSD.
The JSA aims to leverage the PGE's complementary strengths as the largest geothermal company in Indonesia and Chevron as a multinational energy company committed to providing affordable, reliable, and cleaner energy. Chevron believes that its expertise and technology in geothermal exploration, subsurface studies, project development, and operational excellence, combined with PGE's extensive experience in geothermal management, can create value and benefit the wider community by providing reliable and affordable renewable energy.
Julfi Hadi, President Director of PT Pertamina Geothermal Energy Tbk., welcomes the Joint Study Agreement between PGE and Chevron, saying, "With abundant renewable resources and favorable geographical locations, Indonesia has all the elements needed to become a major green hydrogen and green ammonia source. Recognizing its potential, PGE is collaborating with Chevron, which is expected to positively impact the community, especially in the South Sumatra region. This collaboration is also an initial step for us to become a 1 GW company within the next two years."
Wahyu Budiarto, Chevron's Indonesia Country Manager, stated, "We have a long history of working in Indonesia and collaborating with Pertamina. Indonesia has been an important part of our company's portfolio for years. We hope to leverage Chevron's expertise and new technologies in geothermal to explore Indonesia's renewable energy resources together with PGE."
The JSA is the fourth agreement from the initial collaboration between Chevron and Pertamina, announced in Washington, D.C., in May 2022, to explore low-carbon business opportunities in Indonesia. The first agreement was announced at the B20 event in Bali in November 2022 between Chevron New Energies, Pertamina Power Indonesia, and Keppel Infrastructure to explore specific green hydrogen and green ammonia projects using renewable energy in South Sumatra, Indonesia. The second JSA was signed in Houston, Texas, on March 6, 2023, to assess the carbon capture storage and carbon capture utilization and storage (CCS/CCUS) feasibility in East Kalimantan, Indonesia. Thirdly, PGE and one of Chevron's affiliates in Indonesia formed a consortium to participate in and subsequently win the tender for the Way Ratai geothermal working area in Lampung, Indonesia.
In a separate statement, Fadjar Djoko Santoso, Vice President of Corporate Communication of PT Pertamina (Persero), explained that Pertamina would expand its partnerships with global companies to support low-carbon businesses needed in the energy transition era.
"Collaboration in positive EBT businesses is crucial to achieving Net Zero Emission 2060," Fadjar said.
Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**