Pertamina joins the bidding for geothermal assets by Chevron
Pertamina to compete with PT Medco in the bid for the geothermal assets to be sold by Chevron, joining an increasing number of firms interested in an acquisition.
The Jakarta Post reports today that Pertamina has hinted an interested in a bid for the geothermal assets to be sold by 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.
Source: Jakarta Post