Pertamina urged to continue work on Kamojang and Seulawah projects
The state-owned enterprise PT Pertamina has to has to assess the viability of two geothermal plant projects in West Java and Aceh in Indonesia or face loosing around 1 billion IDR for the previous investments due to change in legislation and permits.
The minister of state-owned enterprise Dahlan Iskan has urged PT Pertamina, national oil and gas company, to study two geothermal plant projects in Seulawah, Aceh, and Kamojang, West Java.
“As the winner of the geothermal tender, Pertamina must assess whether the projects are feasible. I have asked Pertamina to finish the report next week,” Dahlan stated on Thursday.
According to Dahlan, the projects had not been implemented because Pertamina did not possess a permit for forest management. As the new Geothermal Law had been authorized on August 26, 2014, the project should be revisited.
“Because the new Geothermal Law has already been legitimated, the old recommendation has been withdrawn, and we are processing the permission, which is in accordance with the new law,” Dahlan explained.
According to the Geothermal Law, geothermal energy is not classified into mining because the exploitation does not consume land. Pertamina has the winning tender for Seulawah field, with a purchase price of 6.9 cents per kWh (kilo watt hour). However, the project was not pursued due to permission issues.
“I have asked to resolve the issue. If it is considered detrimental, do not proceed. However, if the project is not resumed, Pertamina will lose around 1 billion IDR for the previous investments,” Dahlan noted.
He explained that with the addition of these two geothermal projects, Pertamina will have geothermal projects in eleven fields.
Source: Republika Online Website