Indonesia’s state-linked energy company, Pertamina, through its geothermal subsidiary PGEO, has withdrawn from the planned development of the Suswa geothermal field, citing returns insufficient to meet its investment criteria.
- •PGEO had estimated an investment of around US$200 million would be required to develop the field, which has geothermal potential between 100 and 300 megawatts.
- •The Indonesian company signed a non-disclosure agreement with Kenya’s state-owned Geothermal Development Company (GDC) in September 2023, followed by a memorandum of understanding in 2024 to explore joint development.
- •Despite Pertamina’s exit, GDC continues to advance exploration at Suswa, mobilizing drilling rigs and planning phased development.
“Once we calculated what they were offering, with the available resources, we felt the investment wasn’t good. So we'll just look elsewhere, in other, more attractive locations,” John Anies, President Director of Pertamina New & Renewable Energy, told Indonesian press.
PGEO had also pursued a separate agreement with Africa Geothermal International Limited for the nearby Longonot field.
Historically, PGEO seeks single majority ownership in overseas geothermal ventures, a condition that would only be considered after comprehensive due diligence. According to Pertamina, the available terms and resources at Suswa simply did not meet the company’s internal economic benchmarks.
Kenya's GDC entity has already overseen operations in fields such as Menengai and Baringo-Silali and now shoulders the task of securing alternative investment or developing the field with domestic financing.
The Suswa geothermal field has long faced challenges attracting and retaining investors. In 2012, the Kenyan government revoked a 30‑year exploration licence previously granted to WalAm Energy Inc., a U.S.-Canada-based developer, after the company failed to meet drilling, feasibility, and environmental obligations.
WalAm pursued international arbitration seeking compensation, but in 2020 the tribunal upheld Kenya’s decision, clearing the way for the state-owned GDC to advance development.
