AboitizPower’s Balawan-Ijen geothermal power project begins the drilling of two slim hole wells following its agreement with PT Medco Power Indonesia to explore and develop a potential 110MW geothermal power project in Kawah Ijen in the East Java province.
The project team has earlier signed a Memorandum of Understanding with the Bupati (Governor) of Bondowoso to proceed with the resource review work that includes the drilling of 2X slim holes. The slim holes will help determine the right temperature and chemistry before proceeding with the construction of the exploration wells, slated to start in the middle of 2016.
AboitizPower’s foray to expand in the Southeast Asian region is eyeing projects in Indonesia, the leading candidate for its maiden power venture overseas because of similarities in demographics and need for more power in the future. Indonesia is considered as the “mecca” of geothermal resource believed to account for the biggest in the world at 20,000 MW, waiting to be developed for commercial production.
This is not the first overseas venture for the Aboitiz Group. In 2014, its Food strategic business unit Pilmico Foods Corporation acquired a 70-percent stake in Vin Hoan 1 Feed JSC, one of the largest aqua feed producers in Vietnam. The Aboitiz Group is looking at expanding its business Indonesia and Vietnam.