Pertamina, Unocal, PLN in geothermal talks<\/p>\n
SINGAPORE (Dow Jones): Unocal Corp. is in continued
\ndiscussions with Indonesia's oil and gas company Pertamina and
\npower utility PT Perusahaan Listrik Negara to \"move forward\" the
\nSarulla geothermal project in North Sumatra, Unocal's Vice
\nPresident for Commercial Affairs Barry Andrews told Dow Jones
\nNewswires late Thursday.<\/p>\n
Unocal has drilled 13 wells on the site, which has confirmed
\nresources in excess of 400 megawatts, Andrews said. The company
\nhas identified two development areas: Silangkitang with a
\ncapacity of 100 MW, and Namora-I-Langit, which can support three
\ngeneration units totaling 210-290 MW.<\/p>\n
The Sarulla project, which was postponed following the 1997
\ndevaluation of the rupiah, could meet a growing need for power in
\nthe area south of Lake Toba, Andrews said.<\/p>\n
Negotiations are taking place on two fronts. Unocal North
\nSumatra Geothermal Ltd. must negotiate its contract with
\nPertamina to develop and operate the plant. Pertamina, together
\nwith Unocal, must reach an agreement with PLN on the terms of the
\nenergy sales contract.<\/p>\n
Unocal is also in talks with PLN over the Salak geothermal
\nproject in West Java. A Unocal unit provides steam to Salak's six
\nunits, each with a capacity of 55 MW, and operates three of them
\nthrough a joint venture.<\/p>\n
The Salak project is in operation while talks continue over
\nbilling rates, Andrews said.<\/p>\n
After 1997, PLN was unable to fulfill the terms of many power
\npurchase agreements signed with independent power producers. Some
\nprojects were put on hold, while many others are currently being
\nrenegotiated.<\/p>\n
However, increased country risk and the need for sufficient
\nreturn to finance new projects mean PLN will have to agree to
\nhigher rates if it wishes to attract future power sector
\ninvestment, Andrews warned.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pertamina-unocal-pln-in-geothermal-talks-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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