Pertamina and Government of Aceh Join Forces on Seulawah Geothermal Project

Following a long time of uncertainty, things are now seeming to evolve on the Seulawah geothermal project, according to Vice Governor of Aceh, Nova Iriansyah.

Development will now continue in a different scheme, so Minister of Energy and Mineral Resources Ignatius Jonan, under the management of PT Pertamina.

He explained that PT Pertamina Geothermal Energy (PGE) a subsidiary of PT Pertamina will be given a mandate to continue the Seulawah Geothermal Project.

Previously, the Government of Aceh through the Regional Development Company of Aceh (PDPA) and PT Pertamina Geotehrmal Energy signed the Shareholder’s Agreement (SHA) or Geothermal Seulawah Project Shareholders Agreement at Pendopo Governor of Aceh, some time ago.

PT Pertamina Geothermal Energy and PDPA will establish a new company as a joint venture named PT Geothermal Energy Seulawah (PT GES).

Pertamina as the owner of capital and the winner of the tender has 75% of the shares, while the PDPA get a 25% stake that most of the PDPA shares are sourced from the German Government grants through KfW.

The involvement of the local regional development company in partnership with PT Pertamina (Persero) as the winner of the auction in a Public Private Partnership scheme helps empower regional companies and let them be directly involved.