The upstream oil and gas operators in Indonesia contributed 6.67 billion USD of revenue for the government of Indonesia in the first half of 2021. This amount is 91.7% of the full-year Indonesian government revenue target from E&P activities in 2021.
Mr. Dwi Soetjipto, the head of SKK Migas, is thankful that the 2021 first-half revenue contribution was better than expected in a meet-the-press event on 16 July 2021.
Here are the results from the oil and gas exploration and production activities in Indonesia in the first half of 2021 according to SKK Migas.
Oil Lifting Costs
The oil industry managed to lower the oil and gas production cost in 2021. The average production cost in the first half of this year is USD 12.17 per BOE (barrel of oil equivalent) whereas it was USD 13.71 per BOE in the same period last year.
Oil and Gas Production
The average oil production in the first half of 2021 is 667,000 BOPD. This is below the 705,000 BOPD target set by the government for 2021.
The average gas production is 5430 MMSCFD in the first six months of 2021. This is below the 5638 MMSCFD targets of the government for 2021.
To make up for the shortfall of oil and gas production, SKK Migas is asking the oil operators to speed up their work programs.
The average combined oil and gas production in the first half of 2021 is 1.64 million BOEPD.
To stimulate oil and gas exploration and production in Indonesia, SKK Migas is pushing for government approval on several incentives.
The three incentives that are currently being proposed are:
Providing a certain type of tax holiday to all oil and gas operators
Reducing the processing fees charged by the Badak LNG plant to US$0.22 per MMBTU.
Lowering tax paid by companies who provide certain types of goods and services to oil companies.
Completed Oil and Gas Projects in Indonesia
Seven upstream oil and gas projects out of the 12 targeted for 2021 have been completed in the first half of this year, according to SKK Migas.
These 1.46 billion USD projects contributed 9850 BOPD of new oil and 475 MMSCFD of gas.
Here are the 7 completed projects: 1. First phase production from Belato-2 oil field by Seleraya Merangin Dua in South Sumatera
2. EOR in Jirak Field by Pertamina EP in South Sumatera
3. Development of KLD gas field by Pertamina Hulu Energi ONWJ
4. Gas Supply to the Balikpapan refinery from Bontang by Pertamina Hulu Mahakam
5. West Pangkah field development by Saka Indonesia Pangkah Ltd
6. Merakes gas field development in East Sepinggan block by ENI
7. Gas supply from South Jambi B block to PLN Jambi by Jindi South Jambi B.
The Jambaran Tiung Biru Project
SKK Migas is working closely with Pertamina EP Cepu on the development of the significant Jambaran Tiung Biru project. This gas field development project in East Java is categorized as a national strategic project.
The Jambaran Tiung Biru project is more than 90% complete and gas production is expected to come on stream in the fourth quarter of 2021.
Plans of Field Development
SKK Migas approved 14 plans of field development (POD) that will potentially increase the oil and gas reserves by 131.2 million barrels of oil equivalent (BOE).
Exploration Drilling and Discoveries
Oil operators completed seven exploration wells with the following results:
Gas discovery in two wells: Maha-02 and Fanny-02
Oil discovery in two wells: Hidayah-01 and MSDE-01A
Three dry wells: Barakuda-1x, NSD-1 ExpTail and Plajawan Dalam.
The P50 reserves from Well Hidayah-01 are 87 MMBOE. The P50 combined reserves from wells Maha-02, Fanny-02, and MSDE-01A are 154 MMBOE.
P50 reserves are oil and gas reserves that have a 50% or greater probability of being recovered from a petroleum asset.
Drilling, Workovers, and Seismic Survey Activities
Number of development wells drilled – 186
Number of exploration wells drilled – 13
Number of workovers – 309
Number of well services – 11307
2D seismic survey completed – 1917 Km
3D seismic survey completed – 673 Km2
This article is adapted by Jamin Djuang based on the information provided by SKK Migas. He is the Chief Learning Officer of LDI Training.
After 97 years in Indonesia and producing more than 12 billion barrels of oil from the jungle in central Sumatera, Chevron Pacific Indonesia finally hands over its vast operation in the Rokan block to Pertamina Hulu Rokan on 8th August 2021.
The amazing story of Chevron Pacific Indonesia began in 1924 when Standard Oil of California (Socal), sent its exploration team to Indonesia to assess the oil potential in the basin in central Sumatera.
After the initial exploration expedition, Standard Oil of California set up the Dutch registered company, NV Nederlandsche Pacific Petroleum Maatschappij (NPPM), in June 1930 so it could conduct business in Indonesia, which was under the control of the Netherlands East Indies (NEI) at that time.
In 1936 NPPM became CALTEX when Socal and Texaco (Texas Oil Company) jointly formed a company called California Texas Petroleum Corporation to expand their operation in Asia, Australia, and New Zealand.
For most of the history of Chevron Pacific Indonesia, the company was known as Caltex or CPI (Caltex Pacific Indonesia). For this reason, the name Caltex or CPI is used frequently in this article to describe the activities and achievements of Chevron Pacific Indonesia.
The achievements of Caltex in Indonesia are awesome. Here are some of them:
It discovered two giant oil fields in Central Sumatera – The Duri and the Minas field.
It also discovered more than 100 oil and gas fields in the Rokan block and several other blocks.
It is the longest surviving oil company that began its operation in Indonesia as a Dutch company.
It is the biggest oil producer in Indonesia of all time. It produced more than 12 billion barrels of oil in Sumatera and its daily production reached 1000,000 BOPD at its peak.
It operated the famous and successful Duri steam flood.
Rokan block is the largest oil concession block in Indonesia.
It drilled a total of 16023 wells in the four blocks it operated: The Rokan block, the CPP block (Coastal Plain Pekanbaru), the Siak block and the MFK block (Mountain Front Kuantan).
MILESTONES OF CHEVRON PACIFIC INDONESIA
As the 8th of August 2021 marks the end of Chevron Pacific Indonesia, here are the key milestones of Caltex Pacific Indonesia’s operations in Indonesia.
Standard Oil of California sent a team of geologists to Indonesia in March 1924 to survey the oil potential in Central Sumatera.
Chevron registered the company Nederlandsche Pacific Petroleum Maatschappij (NPPM) in 1930 so it could operate in Indonesia which was under the rule of the Netherlands East Indies.
Chevron and Texaco (Texas Oil Company) jointly formed California Texas Petroleum Corporation (Caltex) in 1936 to market its oil products in Asia, Australia, and New Zealand.
In Indonesia, NPPM became Caltex Pacific Petroleum Maatschappij (CPPM).
Caltex then received the right to explore and produce oil in an area in central Sumatera from the Netherlands East Indies. The area is now known as the Rokan block.
Caltex made its first discovery in Indonesia when it discovered oil in the Sebanga field in Riau in August 1040.
Caltex discovered the giant oil field Duri in 1941. Duri has the largest oil deposit in Southeast Asia at that time.
Caltex discovered another giant oil field, the Minas field, in December 1944.
Indonesia declared its independence in 1945. This is the event that changed the ways how oil companies operated in Indonesia.
PT Caltex Pacific Indonesia, commonly referred to as CPI, was established in 1951 as an Indonesian company and was awarded the right from the government of Indonesia to continue to operate the Rokan block under a work contract scheme.
Oil production from the Minas field started in April 1952 and was exported from Parawan and Pakning. The initial oil production from the Minas field was 15,000 BOPD.
The Duri field started to produce oil in February 1954.
Caltex discovered the Bekasap field in September 1955.
Caltex built the first road that connected Pekanbaru and Dumai. It was also the first road that linked the east and west coasts of the island of Sumatra.
Caltex completed the Dumai oil export terminal in July 1958. At the same time, Caltex also completed the construction of oil pipelines from Duri to Dumai.
Minas crude was exported from the Dumai terminal beginning in January 1959.
PT Caltex Pacific Indonesia appointed Julius Tahija, the first native Indonesian as its president in 1963.
Oil production from the Bekasap field began in June 1965.
Oil production from the Duri field during the primary recovery phase peaked at 65,000 BOPD in 1965.
The Pematang field came online in July 1966 and the Pungut field in August 1966.
Caltex cumulative oil production reached 1000,000,000 barrels in August 1967.
Caltex constructed an extensive pipeline and road networks to connect major fields such as Bangko, Bekasap, Pematang, Petani, and Kotabatak. These fields significantly increased its oil production output.
The cumulative oil production from the Minas field reached 1000,000,000 barrels in May 1969.
The Petapahan field began producing oil in January 1973.
Daily oil production of Caltex reached 1000,000 BOPD for the first time in May 1973.
Caltex started the Duri steam flood pilot project.
CPI completed the construction of the 350-meter long bridge over the Siak river connecting the city of Pekanbaru to Rumbai, and former President Soeharto inaugurated the bridge in April 1977. Rumbai is the area where the main office and housing complex of Caltex are located.
Caltex completed its first oil Gathering Station under the Duri steam flood project. More gathering stations were later added as the Duri steam flood expanded.
Caltex completed its main office building in Rumbai.
The late former President Soeharto inaugurated the Duri Steam Flood on 3 March 1990.
Caltex Pacific Indonesia obtained a 20-year extension to its production sharing agreement with Indonesia to operate the Rokan block until 2021.
Caltex implemented the Strategic Business Unit management system in 1995.
Caltex completed the Dumai Main Office in May 1997.
Chevron acquired Texaco in October 2000.
Caltex handed over the Coastal Pekanbaru Plain (CPP) block which it had acquired in 1971 to PT Bumi Siak Pusako – Pertamina Hulu on 18 August 2002.
The new operator is a joint operation body between PT Bumi Siak Pusako (BSP) which is owned by the local government in Riau and Pertamina.
With the acquisition of Texaco by Chevron, Caltex Pacific Indonesia was renamed Chevron Pacific Indonesia in September 2005.
Chevron Pacific Indonesia came under the umbrella of Chevron IndoAsia Business Unit in 2005 along with Chevron Indonesia Company (ex-Unocal Indonesia Company), Chevron Makassar (the Makassar Deepwater Project), Chevron Geothermal Indonesia (Ex-Unocal geothermal projects in Darajat and Salak), Mandau Cipta Tenaga Nusantara, and Chevron Geothermal Philippines.
Chevron Pacific Indonesia marked the 11th billion barrels of oil produced from its Sumatra operation in 2008.
Chevron Pacific Indonesia handed over the operatorship of the Langgak block to PT Sarana Pembangunan Riau in January 2010.
With the help of the successful steam flood, the Duri field’s cumulative oil production reached 2.6 billion barrels in 2018.
Total cumulative oil production of CPI from all fields reached 13 billion barrels.
Chevron Pacific Indonesia hands over the prolific Rokan block to Pertamina Hulu Rokan on 8 August 2021. Rokan block with an area of 6220 KM2 is the largest oil concession block in Indonesia. Stretching over five “kabupaten” (regencies) in central Sumatera it produced oil from more than 12000 wells located in 80 fields. It also operates one of the biggest and most successful steam floods in the world.
The top ten producing oil fields in the Rokan block are Minas, Duri, Bangko, Bekasap, Balam South, Kotabatak, Petani, Pematang, Petapahan, and Pager.
Although the total oil production from the Rokan block has come down to 160,000 barrels per day, it is still a very significant oil asset for Indonesia as it is contributing 24% of the country’s total oil production according to SKK Migas.
Presidents of Caltex Pacific Indonesia Since 1963
One of the keys to success of CPI is its adaptability. The company took initiatives to work well with both the central government of Indonesia and the local government and the communities.
Caltex Pacific Indonesia decided in 1963 to Indonesianize the company. It appointed Mr. Julius Tahija as the first native Indonesian as the company president. All its subsequent presidents have been Indonesians.
Here are the past presidents of Chevron Pacific Indonesia since 1963:
1. Julius Tahija, President & Chairman of the Board of PT Caltex Pacific Indonesia (1963 – 1977)
2. Haroen Al Rasjid, President & Chairman of the Board of PT Caltex Pacific Indonesia (1977 – 1993)
3. Baihaki Hamid Hakim, President & Chairman of the Board of PT Caltex Pacific Indonesia (1993-1999)
4. Humayunbosha, President of PT Caltex Pacific Indonesia (1999-2004),
5. W. Yudiana Ardiwinata, President of PT Chevron Pacific Indonesia (2004-2005),
6. Suwito Anggoro, President of PT Chevron Pacific Indonesia and Deputy Managing Director Indonesia Business Unit (2005-2010),
7. Abdul Hamid Batubara, President of PT Chevron Pacific Indonesia and Deputy Managing Director Indonesia Business Unit (2010-2014),
8.Albert B. M. Simanjuntak, President of PT Chevron Pacific Indonesia and Deputy Managing Director IBU (2014-2021),
Although the signboard with a Caltex logo will no longer be seen at the entrance of Rumbai camp, the company will continue to be remembered by people who have worked for the company and the people who have lived in the surrounding communities.
Caltex will be remembered not just for what it did in the oil fields, but it will also be remembered for what it did for the surrounding people and communities.
Here are some of the most notable legacy of Caltex:
Building the first state senior high school (SMAN-1) in Pekanbaru in 1957
Completion of the 350 meter-long bridge over the Siak River in 1977.
Establishing the polytechnic college – Politeknik Caltex Riau in 2001.
This article is written by Jamin Djuang. He had been in Rumbai and Duri conducting training for Caltex and traveled the private road connecting Rumbai and Duri. He enjoyed eating in the Caltex cafeteria in Rumbai where it served both delicious Indonesian and western food.
Some of the information in this article was provided by Mr. Elthaf who worked for CPI in Minas field for 36 years.
The upstream oil and gas industry of Indonesia invested 10.21 billion US dollars and performed well in 2020 according to SKK Migas, the special task force in charge of upstream oil and gas activities of oil companies in Indonesia.
The oil and gas industry of Indonesia successfully met and even exceeded some of the 2020 targets that were set by the Indonesian government in the following key areas:
Reserve Replacement ratio (RRR).
Controlling the cost recovery
Revenue intake by the government
Completion of oil and gas projects
RESERVE REPLACEMENT RATIO
The reserve replacement ratio in 2020 is 101.6%. The oil industry added 705 MMBOE of reserve in 2020.
OIL AND GAS PRODUCTION
The average daily oil lifting in 2020 is 706,000 BOPD. This exceeded the government target of 705,000 BOPD.
However, daily gas production in 2020 is 5461 MMSCFD. This is below the government target of 5556 MMSCFD.
The amount of cost recovery in 2020 is US$ 8.12 billion which is in line with the government expectations.
OIL REVENUE TO GOVERNMENT
The oil industry contributed US$ 8.4 billion of revenues to the Indonesian government. This amount is 41% higher than the expected amount of US$5.86 billion.
COMPLETION OF EXPLORATION AND PRODUCTION PROJECTS
Fifteen oil and gas projects went on stream in 2020. These new projects added 9182 barrels of oil per day and 111 million SCF of gas per day.
3199 Km of 2D seismic and 1251 Km2 of 3D seismic surveys were completed in 2020.
SKK Migas was active and running in 2020 to keep the oil and gas exploration and production activities at a high level. Here are some of the key actions that SKK Migas undertook in 2020:
SKK Migas signed twenty-four PSC side letters and sixty-one letters of agreement (LoA).
The government reduced the prices of gas sold to domestic companies to stimulate economic growth.
Allowing oil and gas operators to delay topping up the Abandonment and Site Restoration fund.
Eliminating the costs to oil operators of using government assets in their exploration and production activities.
Allowing oil companies to accelerate asset appreciation.
SKK Migas and Chevron Pacific Indonesia signed the Heads of Agreement to ensure the continuity of a high level of activities such as well drilling and production optimization in the Rokan Block during the final phase of the PSC contract. Chevron will hand over the operatorship of The Rokan block to Pertamina when its production sharing contract expires in August 2021.
SKK Migas approved the Plan of Development (POD) submitted by Repsol for the development of the huge Kaliberau gas field having 445 billion SCF of gas reserve in the Sakakemang block. The total investment in this project is estimated at 359 million US dollars.
PERFORMANCE OF THE OIL AND GAS OPERATORS IN 2020
Here are the top nine oil and gas operators who exceeded their oil production targets in 2020.
Chevron Pacific Indonesia
Pertamina Hulu Mahakam
Pertamina Hulu Energi ONWJ
Pertamina Hulu Energi OSES
Petrochina International Jabung
Medco E & P Natuna
Pertamina Hulu Sanga Sanga
Medco E&P Rimau
JOB Pertamina – Medco Tomori Sulawesi
Here are the top nine oil and gas operators who exceeded their gas production targets in 2020.
Pertamina Hulu Mahakam
Eni Muara Bakau BV
JOB Pertamina – Medco Tomori Sulawesi
Premier Oil Indonesia
Petrochina International Jabung
Medco E & P Natuna
Kangean Energi Indonesia
Pearl Oil (Sebuku)
EXPLORATION AND PRODUCTION TARGETS FOR 2021
Being optimistic that Indonesia will meet the target of 1 million BOPD and 12 BSCFD of gas by 2030, SKK Migas is committed to keeping oil and gas production high in 2021. Here are its ambitious targets for oil and gas activities in 2021:
Daily oil production – 705,000 BOPD. This is the same target as in 2020.
The number of exploration wells – 43. This is a significant increase from 28, the actual number of exploration wells drilled in 2020.
The number of development wells – 616. This target is much higher compared with the 240 development wells drilled in 2020.
Number of workovers – 615
Number of well services – 26,431
2-D seismic survey – 3569 Km
3-D seismic survey – 1549 Km2
The Indonesian oil industry performed well in 2020. Mr. Dwi Soetjipto, the head of SKK Migas said: “The year 2020 was a difficult year for many oil operators due to the Covid 19 pandemic and the low oil prices. Nevertheless, the oil industry of Indonesia was able to meet several targets set by the government. Hopefully, this will help the country’s economy.”
This blog article is adapted from “Kinerja Hulu Migas Gemilang Sepanjang 2020” published by SKK Migas on 4 January 2021.
This article is adapted from SKK Migas news by Jamin Djuang – Chief Learning Officer of LDI Training.
Indonesia is the second-largest geothermal energy producer in the world after the USA.
Located right on the long stretch of the ring of fire, Indonesian islands are endowed with rich geothermal resources. The total potential geothermal resources of Indonesia are estimated at 28,000 MW.
Although the geothermal potential is huge, its utilization rate is under 8%. Currently, the total installed power generating capacity from the active 16 geothermal power plants in Indonesia is 2133 MW.
Here are the top ten largest geothermal plants in Indonesia in 2020.
The Kamojang Geothermal Plant
Operating since 1982, the 235 MW Kamojang plant is the first geothermal power plant in Indonesia. Located in the Garut area in West Java, it has been operating for 38 years.
The Dutch spotted the Kamojang geothermal potential more than one hundred years ago and drilled several wells in the area. In 1926 it successfully drilled the first steam producing well in Kamojang, also the first in Indonesia.
Later in I971, Pertamina Geothermal Energi (PGE) with cooperation from New Zealand began to develop the field followed by the construction of the Kamojang power plant, the first geothermal power plant in Indonesia.
The plant is operated by Pertamina Geothermal Energi.
The Salak Geothermal Power Plant
Producing 377 MW of power, the Salak plant is the largest geothermal power plant in Indonesia and is also one of the largest in the world.
Located at Gunung Salak in West Java, the Salak plant has been operating since 1994.
The Salak geothermal resources were initially explored and developed by Unocal. In 2005, the Salak geothermal assets were taken over by Chevron who eventually sold it to Star Energy in 2017.
The Darajat Geothermal Plant
The 270 MW Darajat geothermal plant, located at Garut in West Java, started its commercial operation in 1994 and is one of the oldest geothermal power plants in Indonesia.
The Darajat geothermal assets were initially explored and developed by Amoseas. The assets were later taken over by Chevron who eventually sold it to a consortium led by Star Energi in 2017.
The Darajat resource has two special characteristics. First, it is one of only a few dry steam fields in the world.
Secondly, the Darajat wells are highly productive. While the worldwide average capacity of a geothermal well is 5 to 10 MW, a Darajat well can produce 40 MW of power.
The Sarulla Geothermal Plant
The Sarulla geothermal power plant, with 330 MW capacity, is the second-largest geothermal plant in Indonesia and is also one of the largest geothermal plants in the world.
The Sarulla geothermal resources, located in North Sumatera, were initially discovered by Unocal. Unocal conducted extensive exploration in the Sarulla geothermal working area from 1993 to 1998. It drilled a total of 13 deep wells and proved the existence of 330 MW of commercial geothermal reserves for 30 years.
However, due to the Asian financial crisis in 1997, the Unocal proposed power plant was not constructed until after the project was taken over by Sarulla Operation Limited (SOL).
Sarulla Operation Limited completed the power plant in 2016. The company is a consortium consisting of Medco Power Indonesia, INPEX, Ormat International, Itochu Corporation, and Kyushu Electric Power.
The Muara Laboh Geothermal Plant
Completed in 2019, the 85 MW Muara Laboh geothermal plant is the newest plant among the ten largest geothermal power plants in Indonesia.
The Muara Laboh geothermal plant is located in West Sumatera and is operated by Supreme Energy Muara Laboh (SEML).
It took the company 12 years to complete the geothermal project at 587 million US dollars.
The operator of the project, PT Supreme Energy Muara Laboh (SEML), is a consortium consisting of PT Supreme Energy, ENGIE, and Sumitomo Corporation.
Having proven reserves of 200MW, the company is in negotiation with PLN, the national power company, to build a second power generation unit.
The Ulubelu Geothermal Plant
Operating since 2012 and located at Lampung in Sumatera, the 220 MW Ulubelu geothermal power plant is operated by Pertamina Geothermal Energi.
The combined 220 MW power comes from the four 55 MW power generation units.
The Lahendong Geothermal Plant
The 120 MW Lahendong geothermal plant is located in Tomohon in North Sulawesi. The Lahendong plant started to operate commercially in 2001 and Pertamina Geothermal Energi (PGE) is the operator.
Its combined 120 MW power is generated from the five 20 MW power generation units.
The Wayang Windu Geothermal Plant
Located in the Bandung area in West Java, the 227 MW Wayang Windu geothermal plant began its commercial operation in 1999.
Star Energy operates the Wayang Windu geothermal assets under a joint cooperation contract with Pertamina Geothermal Energi.
The Dieng Geothermal Plant
The 60 MW Dieng geothermal power plant started to operate in 1998. The Dieng plant is located in the Dieng area in Central Java and is operated by Geo Dipa Energi.
Geo Dipa Energi is currently working on the following projects in the Dieng work area:
Adding a small 10 MW power plant.
Developing a 55 MW Dieng-2 power plant (PLTP Dieng Unit 2)
Developing a 55 MW Dieng-3 power plant (PLTP Dieng Unit 3)
The Patuha Geothermal Plant
The 55 MW Patuha geothermal plant located at the Ciwidey area in West Java has been in operation since 2014.
Geo Dipa Energi as the operator is committed to drill 12 new wells beginning in 2021 and construct a second 55 MW power plant. Its long-term plan is to increase the Patuha power generation capacity to 400 MW.
Other Geothermal Plants in Indonesia
Sixteen geothermal power plants are operating in Indonesia currently. Besides the above top ten largest plants, here are two other geothermal plants that are worth mentioning.
The Lumut Balai Geothermal Plant
The 55 MW Lumut Balai geothermal plant, located at Muara Enim in South Sumatera, started to operate commercially in 2019.
Pertamina Geothermal Energi operates the Lumut Balai assets and the company is planning to build a second power generation unit.
The Sorik Marapi Geothermal Plant
The Sorik Marapi geothermal power plant located in Mandailing Natal in North Sumatera has a total installed capacity of 90 MW.
Its first 45 MW unit came online in 2019 and the second 45 MW unit was inaugurated on 28 July 2021.
The Sorik Marapi geothermal plant was developed by ORKA Energy and operated by PT Sorik Marapi Geothermal Power.
The Rantau Dedap Geothermal Plant
The Rantau Dedap geothermal power plant, located in South Sumatera, is the latest geothermal power plant that came online in Indonesia. Currently, it consists of two power stations, Unit 1 and Unit 2 having a total installed capacity of 98.5 MW.
The power plant is operated by PT Supreme Energy Rantau Dedap (SERD), a consortium consisting of Supreme Energy, Marubeni, ENGIE, and Tohoku Electric Company.
Here are the timelines of the geothermal project:
2010 – The concession for the Rantau Dedap was awarded to Supreme Energy.
2011 – Geoscientific exploration began.
2014 – Exploration drilling began.
2015 – A total of 6 exploration wells were completed by 2015.
2016 – The company confirmed the 92 MW of proven reserve capacity.
2018 – Power plant construction began.
2021 – Completed the Unit 1 power station.
The 49.25 MW Unit 1 station was successfully synchronized to PLN’s power grid on 5 October 2021. PLN – Perusahaan Listrik Negara – is the national electricity company of Indonesia.
The Unit 2 station is expected to be completed by the end of 2021.
PT Supreme Energy Rantau Dedap plans to further develop the geothermal potential in the Rantau Dedap geothermal work area with a total development target of 240 MW.
Geothermal is Rising in Indonesia
The list of the top largest power plants in Indonesia will likely change in 2021 as several new power plants will be completed in near future.
The Indonesian government is very keen to develop its vast geothermal resources to increase the contribution of renewable energy in its energy mix. Its targets are to increase the geothermal power generation capacity to 7500 MW by 2025 and 9300 MW by 2035.
To meet these targets, the government will provide funds to help companies in their exploration drillings, provide tax holidays, and remove certain taxes.
With a total of 265 potential sites for geothermal plants located across the country, the utilization of the geothermal resources should continue to increase long into the future in Indonesia.
Written by Jamin Djuang – Chief Learning Officer of LDI Training and author of The Story of Oil and Gas: How Oil and Gas Are Explored, Drilled, and Produced