Star Energy appoints Sumitomo geothermal project EPC contractor

Indonesian energy firm Star Energy has appointed a unit of Japanese firm Sumitomo Corp. as EPC contractor to develop the second unit of its Wayang Windu geothermal power plant in West Java, a company official said.

CEO Supramu Santosa told Petromindo.Com on Wednesday that the US$120 million contract was signed earlier this week. He said construction work would commence this year with completion seen in late 2008. This second unit will add another 110 MW to the power plant's existing capacity of 110 MW.

Supramu said total project costs including drilling would cost $175 million, he said, adding that the project had secured $150 million financing from foreign bank. He declined to revel the bank?s name.

Supramu said Wayang Windu could be expanded to more than 400MW. ?This year further drillings would be conducted to prove up reserves for the expansion plan,? he said. (godang)