Medco seeks partner to develop E. Java geothermal concession
Tuesday, August 9 2011 - 02:02 AM WIB
President Director SJ Aries Pardjimanto said a number of foreign companies have expressed interest to acquire stake in the block, including Philippines firm Petro Energy Resources Corp. ?Petro Energy has formally expressed interest to participate (in the project,? he said.
Aries, however, said that partner will be chosen after Medco completing preliminary survey on the project, which is slated to commence later this year.
Medco is currently teaming up with another local company PT Cahaya Ijen Energy in Kawah Ijen concession. He did not give detail about the share composition between the two companies but said that Medco wanted to retain status as majority shareholders after the foreign partner is selected.
Aries hoped that partner selection could be completed early next year.
He added that the partnership will spend US$35 million during exploration period to unlock the 200-MW potential in the concession, where first phase power plant planned with capacity of 2x55 MW.
Aries estimated that the partnership will need further $280 million to develop the 2x55MW power plant with selling price to state electricity firm PT PLN (Persero) set at 8.58 cents per kwh.
The power plant will become onstream in 2015, he said. (giok)