Indonesia and Kenya Strengthen Ties through Energy Investments: Building a Major Refinery in Kenya

Indonesia and Kenya Strengthen Ties through Energy Investments: Building a Major Refinery in Kenya

Indonesia and Kenya have officially launched a partnership to develop a 600-megawatt (MW) geothermal energy resource. On September 13, PT Pertamina entered into a partnership with Geothermal Development Company (GDC) and Kenya Pipeline Company Limited.

This cooperation was carried out when a Kenyan delegation led by the Minister (Cabinet Secretary) of Energy and Petroleum, Davis Chirchir, paid an official visit to Indonesia (13/9). During this visit, Pertamina Geothermal Energy also signed a Non-Disclosure Agreement (NDA) with Geothermal Development Company (GDC). The signing ceremony was attended by Indonesia's Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, and Kenya's Minister for Energy and Petroleum, Davis Chirchir.

On another occasion, Luhut revealed that as part of this cooperation, Pertamina plans to build an oil refinery in Kenya with a production capacity of 300 thousand barrels per day. The refinery to be built in Kenya will gradually receive oil supplies from several other countries, including South Sudan and Uganda. Currently, both parties are conducting feasibility studies for the refinery development project on the East Coast of Africa.

Pertamina decided to invest in Kenya because Kenya offers several oil and gas blocks that are yet to be developed. One of the blocks offered by Kenya to Pertamina has potential oil reserves of up to 4 billion barrels per day.

In addition to Kenya, the Congolese government also offers Pertamina oil fields with potential similar to Kenya's. The Congolese government is currently bidding for 27 oil and gas blocks.

This cooperation follows President Joko Widodo's visit to Kenya (8/21) and the implementation of a government-to-government (G-to-G) cooperation agreement between the two countries in the energy sector. Energy cooperation has become one of the administration's main focuses in strengthening ties with developing countries. 

In his speech after a bilateral meeting with Kenyan President William Ruto at the State House in Nairobi, Republic of Kenya, on Monday (8/21), President Joko Widodo emphasized that investments between Indonesia and Kenya will increase, especially in the energy sector. Earlier, Jokowi also said that the government is willing to increase investment in Kenya, especially in the energy sector, and asked for support so that a US$1.5 billion investment by Pertamina together with Geothermal Development Company (GDC) and Gunma Group can be realized immediately.

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