Pertamina Geothermal Energy to stay below $277m investment target for 2018
While carefully optimistic, Pertamina Geothermal Energy is expecting to stay below the investment target set for 2018, with a targeted investment of $277 million.
PT Pertamina Geothermal Energy (PGE) is confident of achieving this year’s investment target of USD 277 million. Until the third quarter of 2018, investment realization has reached 80 percent of the target set for the year of 2018.
Pertamina Geothermal Energy President Director Ali Mundakir said, PGE budgeted more than USD 277 million for investment during 2018. Funding for projects by Pertamina was for drilling of geothermal wells and the construction of the Lumut Balai Geothermal Power Plant unit I.
While optimistic on the target, it might not be reached by the end of the year. “Hopefully all can be realized, at least above 90 percent. That is for drilling development wells and Lumut Balai PLTP unit one projects,” according to Pertamina Geothermal Energy President Director Ali Mundakir.
Ali revealed, the potential realization of the investment target was not achieved due to the drilling of two pending wells in Lahendong and Tompaso, North Sulawesi. There is a delay in drilling of two wells at Lahendong and Tompaso as the company has so far not obtained the results from previous drilling.
Previously, the Ministry of Energy and Mineral Resources (ESDM) was not sure that it could reach the investment target in the newly set Energy Renewable Energy Conservation (EBTKE) sector. This year, the ESDM Ministry targets a new investment of USD 2 billion EBTKE, as we reported earlier this week.
ESDM Ministry Director General of EBTKE Rida Mulyana said, until the third quarter of 2018 the achievement of EBTKE sector investment was only 40 percent of the investment target set.
Investment in the geothermal sector experienced a slowdown this year. This is due to the delay in the planned project execution. Like drilling geothermal wells and implementing a list of selection providers to participate in the geothermal power projects.