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Supreme Energy kick-starts development of Rantau Dedap geothermal project

Inauguration ceremony, Rantau Dedap, August 4, 2018 (source: Petrominer)
Alexander Richter 5 Aug 2018

PT Supreme Energy has started drilling of production wells for the Rantau Dedap geothermal project in South Sumatra, Indonesia. The 220 MW geothermal project is developed in a joint venture between Supreme Energy, Engie, Marubei Corp. and Tohoku Electric Power Co.

In a ceremony yesterday, Indonesian Supreme Energy inaugurated the drilling of the first production well (RD-I well) for the Rantau Dedap geothermal power project in South Sumatra. The project is a 220 MW power project to be developed in two phases, with a planned capacity of 90.9 MW (net) for the first phase.

The inauguration of the first taxation was carried out by the ESDM Ministry’s EBTKE Director General, Rida Mulyana, Supreme Energy’s Managing Director, Supramu Santosa, regional government leaders, and other invited guests.

The Rantau Dedap PLTP project, according to Supreme Energy President Director, Supramu Santosa, is a form of consistent effort and a strong commitment from Supreme Energy in developing geothermal resources in Indonesia. This is also expected to play an important role in the Government of Indonesia’s plan to increase the portion of renewable energy (EBT) on a national scale to achieve sustainable energy security.

“The development phase is a series of activities which include drilling production wells and injection wells, building power plants and supporting facilities to produce electricity from geothermal resources,” he explained.

Before entering this development phase, Supreme Energy has successfully completed drilling of six exploration wells in 2012 to 2016. While the development stages, the national company plans to drill 16 wells consisting of 14 production wells and two injection wells.

“By the end of 2018, we are targeting to complete four wells. In this development phase, we use two drilling rigs that will be used simultaneously and simultaneously from one well to another. That way, this drilling activity can take place more quickly, “Supramu explained.

At the same time, the power plant and its supporting facilities are being built and are expected to be completed by mid-2020. The electricity production from the Rantau Dedap PLTP will be sent to PT PLN (Persero) based on a power purchase agreement for 30 years.

“The construction of a power plant and its supporting facilities is carried out by a consortium of PT Rekayasa Industri and Fuji Electric Co. While turbines and generators for plants will be supplied by Fuji Electric, “Supramu said.

To develop this geothermal project, Supreme Energy Rantau Dedap has signed a loan agreement with the Japan Bank for International Corporation (JBIC), Asian Development Bank (ABD), Nippon Export and Investment Insurance (NRXI) and several international commercial banks (Miho Bank Ltd. , Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking Corporataion) on March 23, 2018. The total investment to develop this project reached US $ 700 million.

The Rantau Dedap PLTP project helped open remote areas in South Sumatra Province, provided employment opportunities for around 1,200 people and provided opportunities for local businesses during the construction period. For plant operations later, Supreme Energy also promised to employ local workers.

“In the construction phase this project will create 1,200 jobs. Surely local workers will be preferred. Likewise when operating later. We have started recruiting new graduates in engineering to be trained and employed later, “Supramu said.

Supreme Energy Rantau Dedap is a collaboration company between Supreme Energy, Engie from France, Marubeni Corporation and Tohoku Electric Power Co. Inc. from Japan. In addition to this project, Supreme Energy is also collaborating with Engie and Sumitomo Corp. from Japan for the Muralaboh geothermal project in West Sumatra and Rajabasa in Lampung through PT Supreme Energy Muara Laboh and PT Supreme Energy Rajabasa.

Source: PetroMiner