Drilling starts for 80MW Muara Laboh project in West Sumatra

Drilling starts for 80MW Muara Laboh project in West Sumatra Official drilling start for Muara Laboh project, West Sumatra, Indonesia - May 2017 (source: Supreme Energy)
Alexander Richter 30 May 2017

Drilling has officially started for the 80 MW Muara Laboh geothermal project in West Sumatra, Indonesia. The project is a joint venture by PT Supreme Energy from Indonesia, French ENGIE and Japanese Sumitomo Corp.

As reported last week, Indonesian PT Supreme Energy Muara Laboh (PT SEML) officially started the development phase of Geothermal Power Plant (PLTP) project of Muara Laboh phase I with 80 MW marked by the well First Exploitation in Geothermal Working Area (WKP) Liki Pinangawan Muaralaboh, South Solok District, West Sumatra Province.

The event was attended by the Government of South Solok District, West Sumatera Provincial Government, several Officials of the Ministry of Energy and Mineral Resources (ESDM), Officers of PT. PLN (Persero), and President Director of PT SEML and its staffs.

PT SEML plans to drill eight (8) production wells and three (3) injection wells. The development of PLTP is expected to be completed by mid 2019, and the electricity generated will be distributed to PT PLN (Persero) under a 30-year power purchase agreement.

In early 2017, PT SEML has signed a Loan Agreement with a consortium of Development Finance Institutions comprising the Japan Bank for International Cooperation (JBIC), the Asian Development Bank (ADB), and commercial banks comprising Mizuho Bank, Ltd., Bank of Tokyo -Mitsubishi UFJ, and Sumitomo Mitsui Banking Corporation, with a guarantee from Nippon Export and Investment Insurance (NEXI). The total cost required for the development of this PLTP reached $580 million. To develop the PLTP project, PT SEML has appointed drilling contractor PT Plumpang Raya Anugerah, and appointed the EPC contractor, a consortium between Sumitomo Corporation and Industrial Engineering, with main equipment of turbine and generator to be supplied by Fuji Electric.

The PLTP Muara Laboh project will assist South Solok Regency in particular and West Sumatera Province generally, through the opening of employment opportunities for about 1,200 people and providing business opportunities to local entrepreneurs during the 30 months construction period. In addition, the free CO2 emissions generated by the power plant will be able to provide electricity for approximately 120,000 households.

SEML is a private power producer company, which is owned by a joint venture by PT. Supreme Energy from Indonesia, ENGIE from France and Sumitomo Corporation from Japan.

Source: Company release