Press Release
Jakarta, Desember 12, 2008
Magma Nusantara Limited (MNL), a subsidiary of the Star Energy group of companies announces the mechanical completion of its Unit 2 geothermal power development at the Wayang Windu facility near Pangalengan in Kabupaten Bandung, West Java. During the morning on December 11th, 2008 the newly constructed Unit 2 turbine and steam feed system was powered up for the first time to 12MW (about 10% of its capacity of 117 MW) and produced and sold its first electricity into PLN West Java high voltage grid. On the afternoon at the same day, the facility was powered up again to 30MW. Over the next few days and weeks, the testing and commissioning process will be accelerated, leading to scheduled full commercial operation by March 2009.
The Project, with a total cost of approximately US$ 200 million, has produced its first electricity almost three weeks ahead schedule, on budget and with no safety or environmental mishaps. At the peak of the construction process, there were more than 1,500 workers on site. When unit 2 is fully operational, it will make the Wayang Windu turbine room that houses turbines 1&2 reach of capacity of 227 MW, making it the largest geothermal power plant in Indonesia, and of the largest in the world.
MNL has a Joint Operating Contract (JOC) with Pertamina cq Pertamina Geothermal Energy (PGE), and an Energy Sales Contract (ESC) with Pertamina and PLN (State Electricity Company) to explore an to exploit geothermal resources at Wayang Windu and to supply up to 400MW of electricity to PLN for 30 years.
Now that the construction of the unit 2 projects has been completed, MNL will move to the next phase the development of Wayang Windu Units 3 and 4 which will be designed to achieve a total plant capacity of up to 500MW. Supply of electricity above the currently contracted 400MW will be negotiated as part of an extension to the existing ESC with PLN. Total investment in Units 3 and 4 will be approximately US$ 450 million.
The Wayang Windu geothermal project uses flash steam technology in which steam is used to generate electricity by directly driving a large turbine. The steam is produced at more than 300 degrees Celsius, and contains virtually no pollutant gasses or CO2. It is the most efficient geothermal facility in the world.
Beside operating Wayang Windu, Star Energy also operates the Kakap Block PSC in Natuna, which produces oil and gas with partners Premier Oil, Singapore Petroleum, Medco, Santos, and Pertamina. Gas is sold to Sembawang Corporation in Singapore through the West Natuna pipeline system. Star Energy also holds the Banyumas (Central Java), Sebatik (NE Kalimantan ) and Sekayu (South Sumatera) Exploration PSCs, three of the most prospective oil and gas blocks in Indonesia. The Sebatik block will be drilled in 2009, and has the potential to produce more than 100 million barrels of oil.
Star Energy is also the leading company in any industrial sector in Indonesia in term of its interaction with local communities, its record in environmental management and its care for the safety and health of its employees. Its programs have been recognized by three prestigious awards from Indonesian Government in 2008: a Gold Proper Award for environmental management and community development; a Gold PADMA Award for Corporate Social Responsibility; and a Gold (Aditama) award for Environmental practices.