OTP postpones geothermal drilling in North Sumatra

By Febry Silaban

OTP Geothermal Consortium has postponed exploration drilling program at Sorik Marapi geothermal project in Mandailing Natal Regency, North Sumatra Province, as change in the membership of the consortium is in progress, according to an official at the Energy and Mineral Resources Ministry.

Geothermal Director at the ministry of Yunus Saefulhak told Petromindo.com that there has been no drilling in Sorik Marapi, although the drilling contract has been signed between OTP and local drilling company PT Daya Alam Teknik Inti (DATI).

"The delay occurred because of changes in the consortium, considering Origin (Australia-listed energy firm) will sell its stake," Yunus said, adding that the shares owned by Indian energy giant Tata Power has not changed.

He targetted the 2x110 MW geothermal power plant will come onstream in 2020.

"Currently, negotiation is ongoing between Origin and prospective partner, and the final transaction will be completed by the end of this March," he added.

Yunus said earlier that Italian power firm Enel along with local firm Sari Prima Energy and an undisclosed Chinese company are interested to buy stake at North Sumatra geothermal power plant project that is being offered for sale by Origin Energy.

The OTP consortium is led by Origin Energy along with Tata Power Company Ltd. and Indonesian firm PT Supraco Indonesia.

Origin has 50 percent shares at OTP Geothermal which runs Sorik Marapi geothermal power plant project. Indian firm Tata Power and local firm Supraco hold shares in the project.

Editing by Reiner Simanjuntak