Aceh geothermal developer obtains forestry permit to start drilling
Thursday, February 25 2016 - 01:51 AM WIB
SGX-listed Federal International (2000) reported that developer of Jaboi geothermal project in Aceh has obtained approval from the Indonesian Ministry of Forestry that allows drilling activities to commence.
Federal said the approval was obtained earlier this month.
?The Group is following up closely with the charterer for its land rig on the mobilization and deployment of the rig,? the company said in a quarterly report released on Wednesday.
The company?s 1,200-HP rig is to be deployed for the drilling of three wells at Jaboi, Sabang, as part of the development of an 80 MW geothermal power plant in the area.
The drilling of the three wells was expected to be completed in 2015 but as the necessary land approval from the Forest Ministry has not yet been obtained by the developer, the rig has not yet been deployed.
The value of the charter contract is US$917,000 and under the contract, the charterer has the option to extend the charter for the drilling of a further seven wells at the same location.
Jaboi geothermal power plant project is developed by PT Sabang Geothermal Energy under IPP scheme.
Editing by Reiner Simanjuntak