Medco Power drilling two holes at Ijen geothermal project

By Cepi Setiadi

PT Medco Power Indonesia (MPI), owned by IDX-listed energy firm PT Medco Energi Internasional Tbk, through its subsidiary PT Medco Geothermal Light( MCG) is drilling two slim holes at its geothermal concession in Mount Ijen, East Java province.

MPI?s President Director Fazil E Alfitri told Petromindo.com recently that the exploration drilling has been halfway to finish.

?We expect by May or June 2016, the drilling will reach a depth of 2,000 meters, at which we shall conclude whether it has steam or not,? Fazil said.

?We plan to develop a 2x55 MW MW geothermal power plant although the capacity at Ijen can reach 190 MW,? he said.

Investment for the project is estimated at US$450 million, with 75 percent of the investment expected to be raised from banks and 25 percent from internal sources, he said, adding Medco partners with Philippines geothermal developer Aboitiz Power Corporation.

Faiz added that if everything runs well, construction for the project will kick off by then end of 2017 and it is expected to come onstream 2020.

Editing by Johannes Simbolon