Minister extends Medco?s geothermal exploration period in E. Java

Petromindo|Khalsa

Minister of Energy and Mineral Resources Ignasius Jonan has recently approved a request made by geothermal power developer PT Medco Cahaya Geothermal for a second extension of its exploration period at the Blawan-Ijen geothermal working area, which spans the regencies of Bondowoso, Banyuwangi, and Situbondo, in East Java Province.

The ministry said in a statement that the minister had on August 16 issued a decree on the second extension of the company?s exploration period in the geothermal working area.

The second extension of the exploration period is valid from May 25, 2017 through May 24, 2018, the statement said.

Medco Cahaya, which is a subsidiary of PT Medco Power Indonesia, first obtained the geothermal concession in 2011 through an East Java gubernatorial decree, which was later adjusted to Minister of Energy and Mineral Resources geothermal permit in April 2015.

The company last year obtained the first extension of the exploration period, which was valid until May 24, 2017. In accordance with Law No 21/2104 on geothermal, exploration period is given for a maximum of five years, and can be extended twice, each for a year, including for feasibility study.

Medco Cahaya is developing the Blawan-Ijen geothermal working area, with a potential to produce 110 MW of electricity. The power plant is targeted to start operation in 2020 or 2021, the ministry said in the statement. The company in 2013 signed a 30-year power purchase agreement with state-owned electricity firm PT PLN.

Editing by Reiner Simanjuntak