Landsvirkjun and Iceland Drilling sign new contract for 10 wells in Iceland

Drillmec HH series drilling rig on site in Iceland (source: Drillmec)

Alexander Richter 15 Feb 2016

Iceland’s National Power Company (Landsvirkjun) and Iceland Drilling (Jarðboranir) have signed a new drilling contract for up to 10 wells in the Northeast of Iceland. The wells will be drilled as part of the 2nd phase for the Theistareykir geothermal power project, which is expected to start operation in the second quarter of 2018.

At the site of the Theistareykir geothermal power plant, which is currently under construction, around 50 MW of steam have been secured with drilled wells. This will be sufficient for the first phase of development.

It is expected that the additional wells to be drilled will provide a similar capacity of up to 50 MW. This is the most comprehensive drilling contract that Landsvirkjun has signed in the past few years.

“It is gratifying having reached an agreement with such a strong player like Iceland Drilling, for the supply of steam to the Theistareykir project. The agreement is an important factor in the development of the plant, which is extensive and has been progressing well so far.”, so Hördur Arnarson, CEO of Landsvirkjun.

In a comment by Iceland Drilling’s new CEO Sigurdur Sigurdsson, he said: “This is an extremely satisfactory result for IDC as this has been one of the largest auction for geothermal drilling services in Iceland in later years. In an industry that sees considerable fluctuations, it is important for a company like ours to land such a long-term project. This project is very important for the company and ensures continuous operation in Iceland, in addition to our foreign operations. Iceland Drilling and Landsvirkjun have had a successful partnership for over 50 years and this project is a particularly pleasant continuation thereof.”

Landsvirkjun is currently developing the 90 MW Theistareykir geothermal project, with work on the powerhouse structure and related infrastructure started already last summer. The plans foresee the construction of the facilities to end at the year end, after which contractors will set up and install machinery and electrical equipment. It is the goal to start testing of all equipment already in June 2017 and the first phase of the plant starting operation in October 2017.

Source: Landsvirkjun