Jakarta. Jasa Daya Chevron and Pertamina Geothermal Energy (PGE) recently inked a series of deals related to the geothermal working area in Way Ratai, Lampung.

The signed agreements will pave the way for the establishment of a new business entity that will manage the exploration of the said working area. This includes survey and exploration drilling. Earlier this year, the government named the PGE and Chevron consortium as the winner of the Way Ratai geothermal working area.

According to Pertamina Geothermal Energy president director Julfi Hadi, the consortium has been working with the Energy Ministry over the past months to design a robust legal framework, as well as a commercial framework that is acceptable to the consortium and the Indonesian government.

"We are also making sure that these frameworks align with the relevant regulations,” Julfi said in a statement.

Chevron Indonesia country manager Wahyu Budiarto said such legal and commercial frameworks would be pivotal to the Way Ratai working area’s exploration and development. He added both companies could discover the geothermal resources, which they planned on using for a more environmentally friendly power generation.

“This consortium will explore the possibility of using geothermal resources to build a center for green hydrogen or ammonia in western Indonesia, be it for domestic needs or export,” Wahyu said.

Yudo Dwinanda Priaadi, the director-general for renewables of the Energy and Mineral Resources Ministry, said that the agreement marked a milestone for both parties. Explorations of untapped geothermal resources are also pivotal to Indonesia’s energy transition goal.

Likewise, Fadjar Djoko Santoso, the vice president for corporate communication at Pertamina, said that the partnership showed that Pertamina could work together with global companies.

“Pertamina is also trying to be more environmentally friendly by developing renewable energy, including geothermal,” Fadjar said.