PT. Supreme Energy Muara Laboh/SEML is joint venture of Supreme Energy, ENGIE and Sumitomo formed in 2011. INPEX later joined the venture on 2022 replacing ENGIE. The Project is located at Pekonina Kampung Baru, Nagari Alam Pauh Duo, Kec. Pauh Duo, Kabupaten Solok Selatan, West Sumatra.

THE JOURNEY

Pre-Feasibility Study

Under the Decrees of the Minister of Energy and Mineral Resource (ESDM) issued in 2008, PT Supreme Energy was assigned to conduct pre-feasibility studies in Liki Pinangawan Muaralaboh geothermal prospect. These assignments were completed in 2009 within the time specified in the decrees. The studies have successfully estimated the possible reserves and established the concession area for each of the prospects based on the conceptual models constructed by the integration of geological, geophysical, geochemical data and prior wells.

Geotechnical data was added in order to identify any constraints or hazards for development of the field. The earth science data acquired during the pre-feasibility studies was used to estimate resource size of the prospects.

Following the tender award of the Muara Laboh concessions to the Supreme Energy Consortium in early 2010, a geothermal license (Ijin Panas Bumi/IPB – previously IUP) was issued to the project company. On March 2, 2012, the Power Purchase Agreements (PPA) between Perusahaan Listrik Negara (PLN) and PT Supreme Energy Muara Laboh (SEML) was signed and on the same day the Ministry of Finance of the Republic Indonesia issued the Government Guarantee Letter for the Muara Laboh project. The signing of the PPA and issuance of the Guarantee Letter resulted from several months of intensive and constructive negotiations between the parties, driven by the shared goal of accelerating the development of geothermal energy in Indonesia.

SEML has been working on the exploration program since 2010 and it has completed the Micro Earth Quake (MEQ) and Airborne topographic surveys, civil engineering studies, and land acquisitions which were required for the exploration. Civil construction for exploration drilling has started upon the PPA signing. On September 21 2012, SEML did the First Exploration Well Drilling ML-A1. ML-A1 is a series of 6 drilling exploration wells in the Mining Working Area which proved the existence of geothermal resources in Muara Laboh.

By the end of 2013, SEML has completed the exploration drilling program covering 6 wells (ML -A1, ML-B1, ML-C1, ML-E1, ML-H1, ML-H2). Well monitoring, data evaluation and reserve calculation were performed in 2014.

In 2014, SEML focused on the construction of admin and accommodation building which completed on September 2014, meanwhile the feasibility study report of 6 wells exploration has been submitted to related government on September 2014.

SEML as the holder of a Geothermal Working license area of Liki Pinangawan Muaralaboh (LPM), has managed to obtain certification of the amount of steam backup of an independent agency, appointed by the international banking. The reserves value of steam that has been certified by mid-2014 and the technical information of the EPC tender, confirmed that it is sufficient to build a power plant with a capacity of 80 MWe, where all electricity generation will use geothermal energy (PLTP).

The Feasibility Study, and preliminary design of geothermal power plants, has been successfully completed by the end of 2014 that confirming the project development of 80 MW capacity (net) for the phase I. In 2015, SEML focused in EPC tender and also re-negotiating tariff adjustment with PT. PLN. Amendment of PPA with PT. PLN was issued in 2016 followed with EPC tender result announcement.

Financial Close

Financial Close was reached in 2017 and signed a loan agreement for development in the early of 2017 with the consortium of financial institutions of Asian Development Bank, Japan Bank for International Cooperation, Nippon Export and Investment Insurance, Sumitomo Mitsui Banking Corporation, Mitsubishi UFJ Financial Group and Mizuho Bank. On May 2017 SEML conduct the construction activity and the first spud in of development well.

Commercial Operation Date

After a long journey, Muara Laboh Stage 1 COD (Commercial Operation Date) was announced on December 16^th, 2019.

"Muara Laboh Stage-1 COD (Commercial Operation Date) and the plan for Stage-2 development represent a very strong commitment of PT. Supreme Energy and its international partners towards the development of Geothermal Energy in Indonesia to support the Government of Indonesia achieving 2025 energy mix objective. We appreciate the continued supports from the Government, PLN and Solok Selatan community especially during the exploration and development.” the Chairman of PT. Supreme Energy, Mr. Supramu Santosa said.

Muara Laboh Stage-2

Muara Laboh Stage 2 Development will be commenced after the amendment of PPA is concluded. Stage-2 development with installed capacity about 82 MW is expected to commence on mid 2023.