Pertamina Geothermal Energy Inks MoU with Kenyan Enterprises with regards to Geothermal Power Projects

By: Asia Business Outlook Team | Tuesday, 22 August 2023

As stated by Indonesia's foreign minister, Pertamina Geothermal Energy (PGE), a unit of Indonesian state energy firm Pertamina, has signed preliminary agreements with two Kenyan companies to explore partnerships in geothermal power projects.

PGE signed a memorandum of understanding (MoU) with Geothermal Development Company to explore a $1.5 billion partnership, as well as a separate MoU with Africa Geothermal International No. 1 Ltd (AGIL No. 1) for a potential $700 million deal, according to Retno Marsudi.

The agreements were signed during President Joko Widodo's visit to Kenya.

"This kind of cooperation is very important to pave the way for other energy cooperation, including in the upstream oil and gas sector and new and renewable energy," Retno said in a video statement late on Aug 21.

PGE on Aug 22 said its agreement with AGIL is aimed at development in the Longonot concession in Kenya which could yield up to 500 megawatts (MW) of geothermal power, of which 140 MW is ready to be exploited.

PGE parent Pertamina also signed an MoU to explore partnership potential with National Oil Corporation of Kenya during the same trip.