Supreme Energy conducts first drilling in West Sumatra

PT Supreme Energy Muara Laboh (PT SEML) last Friday (September 21, 2012) started its first drilling on the exploration well ML-A1 of its geothermal concession in Nagari Alam Pauh Duo, Pauh Duo district of Solok Selatan regency of West Sumatera province.

PT Supreme Energy Muara Laboh is owned by PT. Supreme Energy, International Power GDF Suez of France, and Sumitomo Corporation of Japan.

The company said in its press statement on Monday that the drilling of the first well is part of its plan to drill four to six exploration wells on the geothermal concession, which is expected to be able to generate 220 Megawatt (MW) electricity. The first drilling will take between six to nine months to be completed.

The first drilling was witnessed by the province?s deputy governor, Solok Selatan regent, and other government officials and legislators of the local administrations, as well as Supreme Energy Muara Laboh president director and chief executive officer (CEO).

The company said that after the completion of the exploration drillings, expected to be in 2014, it will proceed with a feasibility study, signing of a power purchase agreement for 30 years with state utility PT PLN, and then development of all necessary facilities for generating power from the geothermal concession.

As part of the second fast track of 10,000 MW power development, the Muara Laboh geothermal power plant is expected to start operation in 2016.

Editing by Benget Besalicto Tnb.