SAE to drill first exploration well in Baturraden geothermal project end 2017
Friday, August 4 2017 - 02:12 AM WIB
Petromindo|Khalsa
Independent power producer PT Sejahtera Alam Energy (SAE) plans to drill the first exploration well at the Baturraden geothermal working area in Banyumas, Central Java Province, at the end of this year.
SAE President Director Daniel Moelk said the company is currently constructing the road infrastructure to facilitate the drilling program.
?At the end of this year, we?ll drill the first well to the depth of 3,000 meters,? he told Petromindo.com on the sidelines of a geothermal forum on Thursday.
He said that Halliburton has been appointed as the contractor for the drilling program, which will use a 2,000 HP rig owned by Apexindo normally used in oil and gas industry.
SAE is planning to develop a 2x110 MW geothermal power plant in Baturraden with estimated investment cost of around US$900 million to $1 billion. Daniel said so far the company has spent more than $30 million.
Daniel said the company hopes to be able to submit the first feasibility study on the Baturraden project in the second quarter of 2018 to the government regarding the actual potential of the geothermal work area. ?Afterwards we?ll enter the exploitation stage and we are targeting to start operating the geothermal power plant at the end of 2022,? he explained.
SAE will also develop a 17-km transmission line to transmit the electricity from the project to the Java-Bali system. He said that the company has signed a power purchase agreement with state-owned electricity firm PT PLN, under which SAE will sell the electricity at a price of 9.47 US cents per kWh.
SAE is 75 percent owned by Germany?s STEAG GmbH, while the remaining 25 percent is held by Indonesia?s PT Trinergy.
Editing by Reiner Simanjuntak