Jakarta—State-owned renewable energy company PT Pertamina Geothermal Energy Tbk (PGEO) has prepared a capital expenditure fund for mergers and acquisitions of USD300 million, equivalent to around Rp4.61 trillion. The funds are soon to support inorganic growth.
Pertamina Geothermal is bidding for a geothermal project in Turkiye. PGEO plans to start drilling geothermal wells in Kenya from the Suswa field next year in collaboration with the Geothermal Development Company (GDC).
Pertamina Geothermal Finance Director Yurizki Rio said the allocation of funds to be channelled for the Suswa project will still be relatively minor next year. He argued that drilling for the geothermal block was still in its early stages.
The Suswa Block in Narok, Kenya, is estimated to require an investment of around USD200 million. The field is projected to have a potential power capacity of 100 to 300 megawatts.
Pertamina Geothermal is also negotiating to obtain controlling rights over this project.
However, Yurizki said a relatively large allocation of merger and acquisition funds will be prepared for the Turkiye project. Pertamina Geothermal’s management considers the geothermal block in Turkiye to have a higher valuation because it is now operational.
As is known, the company has signed a non-disclosure agreement (NDA) with a Turkish company, Kipaş Holding. The Turkish government offers favourable feed-in tariffs for long-term overseas investment. (hs)
Banner photo: President Director of PT Pertamina (Persero) Nicke Widyawati inspects the Lahendong Geothermal Power Plant Units 5 and 6 in Tompaso, Minahasa Regency, North Sulawesi, last April. (Photo: Hartatik)