Developer of Sarulla geothermal project asked to amend contract

The government has asked Sarulla Operation Limited (SOL) as the developer of PLTP Sarulla geothermal power plant to amend its joint operating contract (JOC), Investor Daily reported on Tuesday.

The amendment of JOC, which will be used as the basis for the signing of the government?s joint decree (SKB) on the separation of Sarulla?s assets, will pave the way for realization of the geothermal power plant.

Kardaya Warnika, the director general of new and renewable energy and energy conservation at the Energy and Mineral Resources Ministry, hoped that the construction of PLTU Sarulla geothermal power plant which would have a capacity of 330 MW, could be soon commenced.

Kardaya said the government was still drafting the joint decree which will be signed by Energy and Mineral Resources Minister, State Enterprises Minister and Finance Minister to determine the ownership of assets in Sarulla.

The joint decree would divide Sarulla?s assets into two parts ? the upstream assets will be controlled by Pertamina and downstream assets will be controlled by the geothermal plant operator as stated in the joint operation contract.

?But the joint decree could be issued only after the joint operation contract has been amended,? he said. (*)