By Nova Farida
Geothermal developer PT Supreme Energy plans to resume in July of this year drilling program at the Rantau Dedap geothermal development project in Muara Enim, South Sumatra Province.
To develop an 86 MW geothermal power plant, the company will drill a total of around 20 wells. Drilling of six wells has been completed in 2016, while the remainders will be implemented gradually.
?The plan is to drill another 14 wells. At the end of July, spud-in of the first development well will be started. The remainders will be implemented gradually. It may probably be implemented one every two-month, to be followed with construction process,? said Vice President for Relations and HSE at Supreme Energy, Prijandaru Effendi to Petromindo.com recently.
The Rantau Dedap PLTP geothermal power plant project is targeted to start commercial operation in 2020, he said, adding that the project is estimated to around US$700 million, of which $540 million is financed via loans from Japan Bank for International Cooperation (JBIC), Asian Development Bank (ADB) and a group of international commercial banks including Mizuho Bank Ltd., Bank of Tokyo-Mitsubishi UFJ, and Sumitomo Mitsui Banking Corporation, with Nippon Export and Investment Insurance providing guarantee.
Supreme has signed power purchase agreement with PLN for the project under which the company will sell the electricity to the utility at a tariff of 11.76 US cents per kWh.
Supreme has appointed a consortium comprising of PT Rekayasa Industri and Fuji Electric Co., Ltd as EPC contractor of the project, which is located on a 124.5-ha of land.
Editing by Reiner Simnajuntak
