Medco plans $40m drilling program at E. Java geothermal project

By Cepi Setiadi

PT Medco Power Indonesia through its subsidiary PT Medco Geothermal Light (MCG) plans to spend US$40 million to carry out new drilling program at the Mount Ijen geothermal working area in East Java.

Fazil Alfitri, President Director of Medco Power, a subsidiary of IDX-listed PT Medco Energi Internasional Tbk, said that MCG plans to drill four new wells in the area after evaluating the results of ongoing drilling program at two wells, which is expected to be completed in June of this year.

?After evaluating this two wells we will continue with drilling four additional wells to make sure that this project is viable and hopefully by the end of 2017 we can commence the construction,? he said, adding that the planned capacity of the power plant is 2x55 MW.

Medco is teaming up with Aboitiz Power Corp from the Philippines in developing the estimated $450 million geothermal power plant project.

Editing by Reiner Simanjuntak