JAKARTA – PT Pertamina Geothermal Energy Tbk (PGEO) is allocating IDR 7.69 trillion of capital expenditure (capex) to extend the capacity in the mining work areas. The money will be sourced out of the proceeds of its initial public offering (IPO) of IDR 9.02 trillion.

Based on the prospectus quoted today (22/2), approximately IDR 4.23 trillion of capex will be used for conventional expansion and utilisation of co-generation technology, which are intended to meet extra demands from its existing users. The expansion in question will be applied in several work areas, including Lahendong, Hululais, Lumut Balai and Margabayur, Gunung Way Panas, Sunga Penuh and Gunung Sibayak, as well as Sinabung mining work areas.

Then, another IDR 2.54 trillion will be prepared in anticipation of extra needs in several mining work areas, including Lumut Balai and Margabayur, Hululais, Gunung Way Panas, and Kamojang-Drajat. Lastly, the remaining IDR 923.73 billion will be allocated to upgrade its digital, analytic, and reservoir management capacity to support its production.

Then, approximately IDR 1.35 trillion will be channelled out to pay some of facilities agreements dated June 23, 2021, which was made between the company and mandated lead arrangers, initial syndicate creditors, and PT Bank Mandiri (Persero) Tbk (BMRI) as the facility agent.

PGEO is currently conducting an IPO, offering 10.35 billion shares for IDR 875 each starting from February 20 to 22, 2023. (LK/ZH)