Supreme Energy starts drilling of Rantau Dedap geothermal project

JAKARTA (Rambu Energy) – PT Supreme Energy Rantau Dedap (PT SERD) today kicks off the exploration of the Rantau Dedap geothermal energy project. The exploration is marked by the drilling of an exploration well.

The geothermal energy will generate a 2×100 megawatt (MW) power plant, called PLTP Rantau Dedap. The electricity from the geothermal power plant will be supplied to state utility firm PT PLN.

“On Monday (today) we begin the drilling of a well at Rantau Dedap,” Vice President General Service at PT SERD Radikal Utama was quoted by Kompas daily as saying in Muara Enim, South Sumatera.

PT SERD is jointly owned by PT Supreme Energy (Indonesia), GDF Suez Energy International (French) and Marubeni (Japan). In addition to Rantau Dedap, PT Supreme Energy is also developing Muara Laboh geothermal energy project in Solok Selatan District, West Sumatera and Rajabasa in South Lampung.

The inauguration of the project is scheduled to be held today, which is expected to be attended by Director General for New, Renewable Energy and Energy Conservation at the Energy and Mineral Resources Ministry (ESDM) Muzakir Sai Sohar as well as local government officials.

PLTP Rantau Dedap is part of the second phase of the government’s 10,000 MW power crash program. Supreme Energy is found by businessman Supramu Santosa.

Radikal said PLTP Rantau Dedap will invest around US$700-800 million to develop the project. “We hope the development of the project will stimulate the development of geothermal energy in Indonesia, which is still relatively untapped,” he said.

Project Background

The concession for the Rantau Dedap was awarded to the Supreme Energy – GDF Suez Consortium in early December 2010.  The Mining Area License was granted to the project company PT Supreme Energy Rantau Dedap (SERD). SERD have secured the price approval and assignment from the Minister of Energy and Mineral Resources through assignment letter No. 5834/26/MEM.L/2011 September 30, 2011.

The initial exploration program started since 2011, during which the company conducted  Airborne topographic survey and  civil engineering study. Heat loss survey, report and the geoscientific interpretation as well have been completed by the end of February 2012.

On Nov. 12, 2012 PT SERD signed a Power Purchase Agreement (PPA) with the PT PLN. The signing was done by President & CEO of SERD, Supramu Santosa and President Director of PT PLN, Nur Pamudji, witnessed by Minister of Energy and Mineral Resources, Jero Wacik.

Signing of PPA marks a key milestone as it defines the contractual rights and obligations of the parties during the exploration phase, construction phase and operation phase – conditions which are necessary to start exploration drilling activities. (*)

 

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