Pertamina Joins Medco Power in Pursuits for Chevron's Geothermal Assets

Chevron, like other global oil firms, are selling assets, cutting jobs and slashing capital spending globally to maintain profitability. (B1 Photo/Danung Arifin)

By : Retno Ayuningtyas | on 1:14 PM April 19, 2016
Category : Business, Corporate News

Jakarta. State energy company Pertamina has stated its interest in taking over geothermal assets on the pipeline to be sold by multinational oil giant Chevron.

Two Chevron subsidiaries now own and operate geothermal projects in Salak and Darajat fields  two geothermal working areas in West Java in which Pertamina also has a minority interest with a capacity to generate 647 megawatts of power.

"We are interested in the projects. But, we still need to discuss it further," said Syamsu Alam, the upstream director at Pertamina on Monday (18/04).

Pertamina would compete with Medco Power Indonesia  controlled by Saratoga Capital and Medco Energi Indonesia, the country largest listed oil company  that is also is eager to buy the assets.

Chevron, like other global oil firms, are selling assets, cutting jobs and slashing capital spending globally to maintain profitability.

"Amid current weak global oil price, they have to restructure their business," said Rida Mulyana, the director general of new and renewable energy at the Energy and Mineral Resources Ministry.

Rida said that under current rule, Pertamina does not have any preferential right to purchase the projects from Chevron.

"Pertamina can always ask Chevron not to sell them to others, but in the end it would come down to the economics," he said.

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