PLN and Halliburton to cooperate on geothermal development in Indonesia
State-owned utility PLN and U.S. oil service firm Halliburton have signed a new cooperation agreement on the development of geothermal working areas owned by PLN in Indonesia.
As part of nine U.S.-Indonesian trade deals signed during the visit of the U.S. Vice President to Indonesia, there is also on agreement signed involving geothermal energy.
The agreement was announced by Ignasius Jonan, Minister of Energy and Mineral Resources, who said that the “business agreement signing between state-owned Perusahaan Listrik Negara (PLN) and Halliburton does not only strengthen the cooperation between Indonesia and the United States, but also prove that geothermal sector investments are still attractive.”
PLN and Halliburton have agreed to develop geothermal working areas owned by PLN with potential investments from the U.S.
Already in February this year, both companies signed contracts worth around $34 million to drill geothermal wells in Tulehu, Ambon, North Maluku, and develop a long-term strategy for the development of Geothermal in Indonesia.
Investments in new renewable energy in 2017 is targeted to increase by 13% to $1.56 billion compared to this year of $1.37 billion. The target is equivalent to IDR21 trillion, assuming an exchange rate of Rp13,500 per dollar.