Pertamina earmarks $50m investment for work on Lawu project this year
Mount Lawu in Java, Indonesia. Source: (Flickr, CC, By: dany13)
Alexander Richter
4 Mar 2016
Pertamina Geothermal Energy will invest up to $50 million into exploration work on the Ganung Lawu project in East Java, which it won in a tender this week.
In a tender, PT Pertamina Geothermal Energy (PGE) won the the right to develop the Ganung Lawu geothermal project, as we reported yesterday.
The company now announces that it will drill five exploration wells for the project this year.
“We must conduct a preliminary survey prior to drilling to obtain accurate data,” PGE corporate secretary Tafif Azimuddin told local news yesterday.
Pertamina Geothermal Energy has now earmarked US$50 million (IDR 663 billion) for this plan. It is estimated that the drilling would cost US$10 million per well, with a 50 percent success ratio.
PGE currently working to obtain a geothermal business license in that area with the Ministry of Energy in Indonesia. One of the requirements to get the license is to deposit a commitment fund of US$10 million.
PGE plans to use the geothermal energy from the wells to for a 165-MW geothermal power plant (PLTP). The geothermal work area is estimated to have an energy resource of 195 MW.
Source: Tempo
