Pertamina aims to list geothermal company in Indonesia
Pertamina Geothermal Energy, website snapshot
Alexander Richter
25 Jun 2010
Pertamina intends to lead its geothermal subsidiary Pertamina Geothermal Energy to an IPO, diverting a 20% share in the company, to finance projects going forward.
“Indonesia’s state oil and gas firm Pertamina plans to list stakes in an upstream subsidiary and geothermal company to boost their performance, a Pertamina official said on Friday.”, so news from the country.
“There are two Pertamina subsidiaries, PHE and PGE, that are being prepared for initial public offerings,” Ferederick Siahaan, director of investment planning & risk management, told reporters.
“We may divest about 20 percent of each of those firms,” he said, without giving details on timing or how much money it expects from the IPOs.
PT Pertamina Hulu Energi (PHE) operates both domestically and abroad under joint ventures, producing oil and natural gas.
PT Pertamina Geothermal Energy (PGE) needs investment to expand its geothermal capacity to 1,340 megawatts (MW) within five years. The company currently operates geothermal plants in West Java and North Sulawesi, with a combined capacity of 272 MW. The vast archipelago, with hundreds of active and extinct volcanoes, has the potential to produce an estimated 27,000 MW of electricity from geothermal sources.
However, that potential remains largely untapped because the high cost of geothermal energy makes the price of electricity generated this way expensive.”
Source: Reuters
