PT Medco Power targeting drilling start at Ijen geothermal project in late 2019

PT Medco Power targeting drilling start at Ijen geothermal project in late 2019 Project work on Blawan Ijen project site, East Java (source: Medco Energi)
Alexander Richter 26 Aug 2019

PT Medco Power Indonesia and its partner Ormat Technologies are planning to start drilling at the Blawan, Ijen geothermal power project in East Java in the fourth quarter of 2019.

PT Medco Power Indonesia (MPI) is targeting to start the drilling campaign for the Blawan, Ijen geothermal project in East Java in the fourth quarter of this year.

The project is at an exploration stage and planned to produce electricity.  This project is carried out by PT Medco Cahaya Geothermal (MGC), which is 49% owned by PT Ormat Geothermal Power, while the remaining 51% is owned by MPI. The acquisition by Ormat was announced in July 2019.

MPI President Director Eka Satria hopes that after 49% of MGC shares are owned by Ormal, the Blawan PLTP project can be accelerated. “Yes, Insyallah (accelerating the construction of the project). The plan is for the fourth quarter of this year to start drilling,” so Eka.

Blawan Ijen PLTP is targeted to be able to operate commercially (Commercial on Date / COD) in 2022, with a total capacity of 110 MW. Previously, Medco Power also had an electricity purchase and purchase agreement with PT Perusahaan Listrik Negara (PLN) which was valid for the next 30 years.

Medco Power is an independent power generation producer under the auspices of Medco Energi and operates in the private electricity and O&M sector. In addition, Medco Power owns and operates power plants with a total capacity of more than 3,100 MW in 20 locations in Indonesia. One of them is Sarulla PLTP in North Sumatra, with a capacity of 330 MW. This project also joined Ormat as a partner in its development.

The 110 MW Blawan Ijen Geothermal Power Plant project in Blawan Ijen, East Java, Indonesia has a 35-year Geothermal Concession under Decree from Ministry of Energy and Mineral Resources (“MEMR”) (IPB No. 2683 K/30/MEMR/2015).
Subsequently, in February 2013 MCG has signed PPA (Power Purchase Agreement) with PT. PLN Persero (Indonesian State-owned Power Company) for a 30 years contract. As stated in PPA, the COD (Commercial Operation Date) is expected in 2020 – 2021. The project will have 2 x 55 Megawatt (MW) power generation and approximately 28 km transmission line to the nearest substation (Banyuwangi Substation).
Ijen Project is currently at exploration stage. MCG has conducted pre-feasibility study by doing 3G resource evaluations (Geologist, Geochemist, and Geophysics). The studies were conducted by ELC (Electro Consult) from Italy and GeothermEx (a Schlumberger company). The company also enganged with reputable University  of Indonesia in assessing the well targeting.
MCG also has conducted 2 slim-hole drilling in early of 2016. The 1st well (IJN-01) has reached 2,000 m on 19 Jun 2016 and provides a promising resource.

Source: KataData, Medco Power