22-8-2023 (JAKARTA) Pertamina Geothermal Energy (PGE), a subsidiary of the Indonesian state energy firm Pertamina, has taken a significant step towards expanding its presence in the geothermal power sector by signing initial agreements with two Kenyan companies. The agreements, worth potentially billions of dollars, were announced by Indonesia’s Foreign Minister, Retno Marsudi.
Under the first memorandum of understanding (MoU), PGE will partner with Geothermal Development Company to explore opportunities in geothermal power projects. This partnership has the potential to be valued at $1.5 billion. The second MoU was signed with Africa Geothermal International No. 1 Ltd (AGIL No. 1) and could result in a deal worth approximately $700 million.
The signing of these agreements took place during President Joko Widodo’s visit to Kenya, emphasizing the importance both countries place on fostering cooperation in the energy sector. Minister Retno Marsudi highlighted the significance of such collaborations, stating, “This kind of cooperation is very important to pave the way for other energy cooperation, including in the upstream oil and gas sector and new and renewable energy.”
PGE has further outlined the specifics of its agreement with AGIL. The focus lies on the development of the Longonot concession in Kenya, which has the potential to generate up to 500 megawatts (MW) of geothermal power. Notably, 140 MW of this capacity is already available for exploitation.
In addition to PGE’s endeavors, Pertamina, the parent company of PGE, signed its own MoU during the visit. This agreement aims to explore partnership prospects with the National Oil Corporation of Kenya, further expanding the potential avenues for collaboration between the two nations.
