Panax expands Indonesian geothermal portfolio

Australia-listed geothermal developer Panax Geothermal Limited announced on Monday expansion of Indonesian interest through a new agreement to commence exploration on the east coast of central Sumatra.

The company has signed an MoU with Jambi provincial government -owned power company PT Petrogas Jambi Power to start exploration on what will be Panax?s third geothermal development project in Indonesia.

Under the terms of the MOU, Panax will hold an initial 95 per cent interest in the project areas.

Panax and its partner intend to expedite the securing of required licences and permits to explore and develop potential geothermal resources with a target of up to 80 megawatts per project, it said.

Energy generated from the proposed project would be connected into the local electricity transmission grid or used for local industry.

Panax?s existing projects include signed deals to build two geothermal power stations in Northern Sumatra and Flores with its other Indonesian partner, Bakrie Power (part of the listed Bakrie Group). Each of these two projects are approximately 30 to 40 megawatts in size.

Panax has also commenced discussions with Bakrie Power to participate in the 165 MW Ngebel-Willis Geothermal Project in East Java.

Panax has recently established a small office in Jakarta, which is managed by Sjaiful Bahri, who has in excess of 35 years experience in geothermal project development in Indonesia with Unocal (now part of the Chevron Group).(alex)