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Drilling starts for Rantau Dedap project, South Sumatra

Rantau, South Sumatra, Indonesia (source: flickr/ amrufm, creative commons)
Alexander Richter 5 Şub 2014

The development consortium of PT Supreme Energy, GDF Suez and Marubeni has announced it has started drilling its first well for the Rantau Dedap project in South Sumatra, Indonesia.

On Monday this week, PT Supreme Energy Rantau Dedap (SERD) has announced it has started drilling its first well in Tunggal Bute Vilage, Muara Enim in South Sumatra.

The drilling for the Rantau Dedap geothermal project is the start of a likely three to three and a half years development for the planned geothermal power plant.

The company plans to be able to test the well by September 2014. The Supreme Energy Ratau Dedap project is a joint venture by PT Supreme Energy, GDF Suez and Marubeni Corporation. The project plans to drill five 2,400-meter-deep wells, the drilling of which will take 45 days each.

The geothermal wells themselves are expected to start operating in 2018. They are expected to power two plants, each producing 110 megawatts (MW) to overcome an electricity shortage in the province.

Rantau Dedap geothermal area is one of three blocks in Sumatra managed by Supreme Energy Rantau Dedap. The other two blocks are in Muara Laboh, West Sumatra, which has gone through well testing, and Rajabasa in South Lampung, which is still waiting on a permit from the Forestry Ministry over land use.

In the Rantau Dedap power plant project, the consortium is investing around US$3 million to $4 million per megawatt, making the total investment up to $700 million.

“Almost 50 percent of the investment will be spent on the power plants,” said SERD president commissioner Supramu Santosa.

The electricity that will be generated by Rantau Dedap power plant will be sold to state-owned electric company PT PLN for 8.86 US cents per kilowatt hour (kWh) under a 35-year contract.

Meanwhile, the electricity generated by power plants in Muara Laboh and Rajabasa will be sold for 9.4 and 9.5 US cents per kWh, respectively.

These geothermal power plants are the second stage of the 10,000 MW power plant acceleration (or fast-track) program launched by PLN in 2006.

Tisnaldi, director for geothermal at the Indonesian Energy and Mineral Resource Ministry, said the Rantau Dedap power plant would be the world’s largest geothermal plant. “Its [electric power] potential reaches 600 MW,” he said. ”

Source: The Jakarta Post