Corbetti geothermal project, Ethiopia – Drilling Contract Pre-Qualification

Corbetti geothermal project, Ethiopia – Drilling Contract Pre-Qualification Corbetti Caldera, Ethiopia (source: Reykjavik Geothermal)
Alexander Richter 23 Jun 2020

Corbetti Geothermal has launched a pre-qualification notice for drilling activities for the geothermal project in Ethiopia to identify potential drilling contractors.

Corbetti Geothermal PLC has issued a pre-qualification notice for geothermal drilling in the area of Corbetti in Ethiopia, to identify potential drilling contractors that are interested in participating in the Project.

Corbetti Geothermal PLC is developing a geothermal power project in the Corbetti caldera in Ethiopia. Berkeley Energy (BE), which is fund manager of the African Renewable Energy Fund, along with Reykjavik Geothermal (RG) are the principal participants in the project.

The Company has a license that will allow it to develop up to 500 MW of electrical generating capacity in the Corbetti caldera (the Project). Numerous surface studies have shown that this caldera has significant geothermal potential that permits an overall project of this size. The Company has negotiated a PPA with Ethiopian Electric Power (EEP) and a support agreement (IA) with the Government of Ethiopia (GoE), signed in March 2020. The PPA sets out the commercial terms for a project of up to 150 MW split into two phases of 50 MW and 100 MW. The PPA also grants the Company a right of first refusal over further geothermal expansion up to 500 MW. The contracts are in the process of being made effective by GoE through satisfaction of a number of conditions precedent. Swift resolution is expected.

Interested drilling contractors are asked to send information about their company, their capability of performing the drilling of geothermal wells as described in this paper and their experience in international drilling. A reference list of similar drilling projects that the candidate has performed earlier, especially on the international market, is required.

Based on the information contained herein, candidates are invited to express their interest in making an integrated drilling contract with the Company for at least three geothermal exploration wells, and up to 26 productions wells.

The information provided is strictly confidential and solely for use in this pre-qualification and through the further development stages / phases.

Detailed tendering documents will be issued at later stage to selected bidders after the results from this pre-qualification. It is estimated that the drilling contract will be awarded in Q4 2020.

The Company is seeking information from qualified drilling contractors with the capability to drill geothermal wells of similar design to detailed specifications.

The 3 initial wells will be of standard diameter and drilled deviated to maximize the information gathered from drilling of such wells. Depending on the outcome of the Corbetti exploration drilling a go/no go decision will be made on the drilling of additional production wells in the area for the future geothermal power plant targeted up to at least 150 MWe.

Find details and the full announcement in this document (pdf).