NQ Academy Webinar #3: The Three Million Dollar Well

After the Master Plan of National Energy (RUEN) in 2017 set a target installed capacity for Geothermal Power Plant (PLTP) 7.2 GW in 2025, various efforts were made by the government to achieve this goal including drilling by government in 20 Geothermal Working Areas (WKP) 2020-2024.

This target becomes dynamic, following developments and obstacles faced such as regulatory constraints to the impact of Covid-19, the latest targets are 7.7 GW in 2030 and 9.3 GW in 2035.

In his remarks at the 10th MUNAS API/INAGA (Indonesia Geothermal Association) yesterday, 18/11 2020, Prijandaru Effendi, who was re-elected as President of the INAGA for the 2020-2023 period, said that INAGA supports government efforts in geothermal development, but INAGA will release Geothermal Road Map association version after the long wait Presidential Regulation on New and Renewable Energy published.

The most interesting question of this plan is about Drilling. How many wells will be drilled to develop nearly 1.5 GW PLTP? If an average output/well is taken of 8 MW with a drilling success ratio of 50% for exploration and 70% for production wells, reserve wells and injection wells, there will be about 400 wells are needed. This number does not include the slim holes which are increasingly being applied at the exploration stage. The number of wells increases significantly if resulting output/well is under the assumption of 8 MW.

The cost of geothermal drilling in Indonesia is relatively more expensive compare with other countries, varies widely in a very wide range. Director of Geothermal Indonesia when launching the Digital Indonesia International Geothermal Conference mention that the drilling costs are in the range of $ 3M – $ 12M per well. Meanwhile, a survey conducted by the Geothermal Directorate of EBTKE, based on drilling in 2018 and 2019, resulted in a drilling cost of $ 2500-3800/ m with an average well drilling cost: $ 7.6M (Exploration well),$ 7.2M (Development well), $ 6.7M (Operation/Make Up) with a Total Well cost $ 7.4M (this number was presented on Indo EBTKE Webinar Sept 18, 2020).

The wide range of geothermal drilling costs in Indonesia can be seen from the depth of the well, it is noted that there are wells with a depth of only 1.5 km to the deepest 3.6 km, the conditions of access and infrastructure are very different, with factors of up to 2 or even 3 times if compared to Java Island.

Another factor is the difference in drilling management: Self-drilling, Bundling, semi IPM, IPM, and of course related to how efficient the geothermal company and the drilling contractor that carries out the drilling.

NQ Academy Webinar Episode 3 will deliver an interesting topic about drilling entitled “The Three Million Dollar Well: A Lesson Learned from Geothermal Drilling in Indonesia” which will be delivered by Ashadi, M.T., Drilling Manager of KS Orka Renewables Pte Ltd & Co-Founder Jakarta Drilling Society.

Participants of the NQ Academy Webinar #3 will get valuable information from lessons learned “efficient” geothermal wells. Can it be applied in other locations?

We invite you to take part in The 3rd NQ Academy Webinar. So, Don’t miss it!