KS Orka to sell geothermal asset

By Alexander Ginting

Singapore-based geothermal developer KS Orka Renewables Pte. Ltd is planning to sell its geothermal asset in North Sumatra.

Petromindo.com sources said that the Company has received offer from three Indonesian companies, namely Pertamina Geothermal Energy Tbk (IDX: PGEO), Star Energy, a unit of  Barito Pacific Tbk (IDX: BRPT) and Medco Power, a unit of PT Medco Energi Internasional Tbk (IDX: MEDC).

KS Orka has 95 percent shares at PT Sorik Marapi Geothermal Power which  currently operates three units of geothermal plant in Mandailing Natal regency, North Sumatra, with total capacity of 140 MW, expandable to up to 240 MW. The remaining 5 percent shares of Sorik Marapi is owned by PT Supraco Indonesia.

The fourth unit, with a capacity of 50 MW, is expected to start operation by year-end, Sorik Marapi Director  Riza Pasikki told Petromindo.Com in February this year.

Read also : GDE, KS Orka in talks over geothermal project

Sorik Marapi has signed a 30-year power purchase agreement with state-owned electricity firm PT PLN, under which the company sells electricity output from the geothermal power plant to the utility at a tariff of 8.1 US cents per kWh.  

KS Orka is majority owned by Chinese firm Kaishan Group with Iceland firm Hugar Orka ehf as minority shareholder.

Apart from Sorik Marapi, KS Orka also operates Sokoria geothermal plant in East Nusa Tenggara with current capacity of 5 MW, expandable to 30 MW.

In 2022 the Company closed a US$ 60 million deal with Turkiye firm  Hitay Group to acquire 7 geothermal concessions in Indonesia with resources potential of 990 MW.

Editing by Reiner Simanjuntak

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