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South Sumatra to hold tender for geothermal areas in 2014

South Sumatra to hold tender for geothermal areas in 2014 Coastal view, Lampung, Sumatra (source: flickr/ trugiaz, creative commons)
Alexander Richter 28 Oct 2013

South Sumatra is planning a tender for two of potentially three geothermal blocks for development, Lawang, Tanjung and Sakti. Turkish Hitay Investment Holding currently conducts first initial studies in the area.

Local news from South Sumatra report, that the Provincial Government of South Sumatra plans to hold a tender for two geothermal blocks in 2014.

“In South Sumatra, there are three mining area (geothermal WKP) established by Ministry of Energy and Mineral Resources, namely Tanjung Sakti, Lawang and Rawas block. Two from the three blocks, Lawang and Tanjung Sakti blocks, will be tendered in 2014,” Head of Mining and Energy Development of South Sumatra Robert Heri said before the weekend.

Rawas block, according to Heri, cannot be developed because it is located in the area of forest conservation.

He explained, currently, Turkish Hitay Investment Holding, conducting the initial survey to determine the potential energy contained in the WKP.

“Hitay interested in building geothermal power plants. In terms of geothermal potential, our 2016 target is 2 to 4 trillion IDR,” he said.

Besides Hitay,he added, there are two companies developing geothermal energy in the province. They are PT Supreme Energy in Rantau Dedap and PT Pertamina Geothermal Energy (PGE) in Lumut Balai.

“Currently, Supreme Energy is preparing the infrastructure for exploration and PGE has done drilling,” he explained.

Meanwhile, Head of local investment board (BP3MD) Permana said, Hitay Investment Holding is the only foreign investor interested in local geothermal sector.

“Foreign investors are rarely interested to invest in this sector. Hitay is a tenacious company in geothermal energy investment. After survey, Hitay has proposed for related permits,” he said.

Source: Republika