Unocal Corp continues with Sarulla project<\/p>\n
JAKARTA (JP): Unocal Geothermal of Indonesia Ltd, a subsidiary
\nof United States Unocal Corp, is continuing to develop a Sarulla
\ngeothermal power plant in North Sumatra although the project has
\nbeen canceled by the government.<\/p>\n
Company vice president and general manager Olin D.
\nWhitescarver told The Jakarta Post Thursday the company was
\ncontinuing on with the project in the belief that the monetary
\ncrisis would soon be over and the government would then give the
\ngo-ahead to the project.<\/p>\n
\"We are doing everything for the project so that we are ready
\nto move ahead when the government is ready to move ahead,\"
\nWhitescarver said.<\/p>\n
He said there was no slowdown in the companies activities at
\nSarulla.<\/p>\n
Unocal is developing the 330-Megawatt Sarulla project with the
\nstate oil and gas company Pertamina and PT Parama Geopower, an
\naffiliate of the Nusamba Group.<\/p>\n
The project is among 15 megaprojects canceled or put under
\nreview by President Soeharto last month as part of efforts to
\ndeal with the monetary crisis.<\/p>\n
The project was first canceled by the government last
\nSeptember along with tens of other projects, but Soeharto issued
\na decree in November allowing 15 of them, including the Sarulla
\nproject, to continue.<\/p>\n
After the September cancellation Unocal aggressively lobbied
\nthe government to continue the project, saying it was feasible
\nand that the company had invested a lot of money in it.<\/p>\n
But since the second postponement last month Unocal has held
\nback from pressuring the government to continue it, Whitescarver
\nsaid.<\/p>\n
\"The recent postponement has more to do with the relationship
\nof the Indonesian government and the IMF (International Monetary
\nFund),\" he said.<\/p>\n
\"We feel we don't really want to put pressure on the
\ngovernment until it's the right time to move ahead,\" Whitescarver
\nsaid.<\/p>\n
He said Unocal had not yet suffered financial losses due to
\nthe cancellation but admitted this was possible if the project
\nwas postponed too long.<\/p>\n
\"But, we are looking forward a little bit more positive on
\nthis project.<\/p>\n
\"This monetary crisis came on very quickly and we hope it goes
\naway very quickly,\" he said.<\/p>\n
The company has invested US$60 million in the project.<\/p>\n
The Sarulla project is scheduled to come on stream by 2000.<\/p>\n
The company recently announced that it had completed
\ndevelopment of one of the world's largest geothermal wells -- the
\nSilangkitang 1-3 well -- at Sarulla. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/unocal-corp-continues-with-sarulla-project-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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