Supreme Energy, PLN to sign PPA in April

President Director of PT Supreme Energy, Supramu Santosa said on Tuesday that the company would sign a power purchase agreement (PPA) with PLN in April for the electricity to be produced from two geothermal fields including Rajabasa field in Lampung, and Liki Pinagawan in West Sumatra.

The two geothermal fields will each produce 220 MW of electricity, which will be sold to PLN at a price of 9.5 US cents per Kwh and 9.4 cents per Kwh, respectively.

?We?re still in negotiation (with PLN),? said Supramu, who said on February 24 that the PPA would be signed in March.

Supramu said that company has yet to complete negotiation with PLN over penalty and force majeure conditions.

Supreme Energy expects to start development of the geothermal fields early next year. Investment for each geothermal fields is estimated at US$650 million, while the investment cost for drilling work of one well is estimated at $6-7 million.

It would take between 1.5-2 years for the company to conduct exploration work. ?We?re optimistic production can begin at the end of 2014 or early 2015,? he said.

Elsewhere, Supramu said that the company was still in the process of selecting potential partner for the development of a third geothermal field called the Rantau Dedap field in South Sumatra.(giok)