PT. Supreme Energy Muara Laboh signed a Loan Agreement for Muara Laboh Geothermal Development

Posted on: January 31st, 2017 by Relation Staff

Jakarta, 31 January 2017. PT. Supreme Energy Muara Laboh (SEML) has signed a loan agreement on January 26, 2017 with a consortium of Development Finance Institutions consisting of Japan Bank for International Cooperation, Asian Development Bank (ADB) with funds from Leading Asia’s Private Sector Infrastructure Fund established between ADB and Japan International Cooperation Agency, and the commercial bank group consisting of Mizuho Bank, Bank of Tokyo-Mitsubishi UFJ and Sumitomo Mitsui Banking Corporation all under a guarantee from Nippon Export and Investment Insurance. The loan of USD 440 million is to finance the development of 80 MW Geothermal Power Generation Project located at Solok Selatan Region, West Sumatra Province, the first stage of 220 MW planned exploration and development in the working area. To develop the project, SEML has also appointed an EPC Contractor, a consortium of Sumitomo Corporation and Rekayasa Industri with the main equipment of turbine and generator to be supplied by Fuji Electric. The Project is expected to be completed in mid-2019.

Supramu Santosa, President & CEO of Supreme Energy said that “the development of Muara Laboh Geothermal represents a long persistent efforts and strong commitment of Supreme Energy in the development of Geothermal Resources in Indonesia which is an important part of the Government of Indonesia plan to boost the share of renewable energy in the country’s energy mix to achieve a sustainable energy security.”

The Muara Laboh project will help opening up a somewhat remote region of Solok Selatan, West Sumatra Province, providing employment opportunity to around 1,200 people as well as providing opportunity to local businesses during 30 months construction period. The CO2 emission free electricity generated by the plant will be able to provide electricity to some 120 thousand households. Supreme Energy is also preparing the development of 86 MW Geothermal Power Generation Project by PT. Supreme Energy Rantau Dedap (SERD), in South Sumatra Province, following the completion of 6 (six) well exploration in 2016, the first stage of planned 220 MW Exploration and Development in the area. Through PT. Supreme Energy Rajabasa (SERB), Supreme Energy is also preparing the exploration program for Gunung Rajabasa Working Area located in South Lampung Region.

SEML and SERB are Joint Venture Companies consisting of PT. Supreme Energy, ENGIE of France and Sumitomo Corporation of Japan while SERD is a joint venture of PT. Supreme Energy, ENGIE and Marubeni Corporation of Japan.