Pertamina, PLN to jointly develop power plants

Pertamina, PLN to jointly develop power plants

JAKARTA (JP): State oil and gas company Pertamina and a
subsidiary of state electricity company PLN, PT PLN Pembangkit
Java Bali I (PJB I), have signed an agreement to jointly develop
geothermal power plants throughout Indonesia, Pertamina
announced.

Pertamina spokesman Toto Soeparto said under the agreement,
both companies would cooperate in the design, construction,
testing, operation and maintenance of the geothermal power
plants.

"The agreement will increase the synergy between the two
companies in the form of a joint venture," Toto said in a media
statement late on Tuesday.

Signing the agreement for Pertamina was director for
exploration and production Gatot K Wiroyudo, while representing
PJB I was director for development and trade Herman Darnel.

The two companies will also work together in the fields of
exploration and exploitation of geothermal resources, and jointly
study the upstream and downstream feasibility of the energy
resource.

He said Pertamina had good experience in the development of
geothermal fields, while PJB I was experienced in building and
operating geothermal power plants.

Toto said the present cooperation between the two companies
involved the operation of geothermal power plant Kamojang units
I, II and III, which have a combined capacity of 140 megawatts
(MW).

"The current cooperation between the two companies in
operating the Kamojang geothermal power plant will show the
synergy between them and mutually benefit both companies," he
said.

Future projects could include the development of the Kamojang
unit IV with a 60MW capacity; the Sibayak unit I with a 20MW
capacity; the Lahendong unit II with a 40 MW capacity; and the
Ulubelu unit I, which has a 60MW capacity.

Indonesia's potential geothermal resources could provide up to
19,000 MW of the country's power needs, however, at present only
250 MW is being used.

Toto said Pertamina was committed to further developing its
geothermal non-core business unit, so that the unit could grow
into a solid strategic business unit of the company.

The government granted Pertamina monopoly rights over the
exploitation of geothermal resources in the early 1980s through
Presidential Decree No. 22/1981.

The government amended the decree 10 years later with
Presidential Decree No. 45/1991, which allowed Pertamina and its
contractors to explore and exploit geothermal resources, generate
electricity using geothermal steam and to sell the power to PLN.

The latest decree, Presidential Decree No. 76/2000, lifts the
monopoly and transfers the management and licensing rights of
geothermal resources to the regions. (bkm)