Supreme Energy invests $28m for road infrastructure at Muara Laboh project
Tuesday, December 31 2013 - 03:42 AM WIB
PT Supreme Energy said it has allocated US$28 million to build road infrastructure at its Muara Laboh geothermal exploration project in Nagari Liki Pinangawan, Solok Selatan Regency, West Sumatera Province.
The company's President Commissioner, Supramu Santosa told Petromindo.com on Monday that after the Power Purchase Agreement (PPA) was signed with state-owned electricity utility PT. Perusahaan Listrik Negara (PLN) on March 2, 2012, the firm immediately proceeded with the development of roads. The company is currently completing the construction of a 10-km road.
The cost of developing the geothermal project, according to him, is so expensive because the drilling location is quite remote in mountainous area where roads are non-existent, thus forcing the company build the necessary infrastructure.
Supramu said that the total investment for developing the geothermal project and a 2x110 MW power plant is estimated at about $700 million. The company has already spent about $130 million.
Supreme has started drilling activities since September 2012. Supramu said that so far, six wells have been drilled, with drilling cost of each well estimated at $9-10 million .
The target is for the power plant to come on stream at the end of 2017, he added.
Editing by Reiner Simanjuntak