Medco may seek partner to develop Ijen geothermal project

PT Medco Power Indonesia through its subsidiary PT Medco Cahaya Geothermal is planning to drill 8-10 wells at the Ijen geothermal project in East Java.

Kontan quoted Friday Medco Power President Director Fazil Erwin Alfitri as saying that the company was also looking for partner to help finance the project. He, however, said that the company wants to retain 70-80 percent stake in the project.

Fazil explained that if the company could only find 50 MW of geothermal potential in Ijen, Medco will go alone in developing the project, but if it could find up to 110-200 MW, the company will seek a partner.

Medco plans to develop a 2x55 MW geothermal power plant in Ijen. The power plant is targeted to start commercial operation in 2018.

The company is also part of a consortium developing the larger 330 MW Sarulla geothermal power plant in North Sumatra. It recently sold a 49 percent stake in an affiliate company involved in the project to INPEX Corporation to help raise funds to accelerate the development of the power plant project. (*)