Pertamina to resume troubled geothermal project
Wednesday, March 21 2007 - 11:26 PM WIB
State oil and gas company PT. Pertamina will resume works on Karaha Bodas geothermal power plant project after it had settled payment to the project?s previous owner, a Pertamina official said as quoted by Kontan daily.
CEO Ari Soemarno said Pertamina now owned 100 percent of Karaha Bodas after it had paid US$320 million in penalty to former owner Karaha Bodas Company (KBC) recently following a Cayman Island court verdict.
Ari said approach would be made to team up with state electricity firm PLN to jointly develop the project.
Karaha Bodas was one of 27 power plant projects terminated by the government ? as recommended by the International Monetary Fund ? following the 1997 economic crisis. KBC then filed a series of lawsuits seeking compensation for the halted project.(*)