Sarulla Geothermal

 

Year Remarks
1993 UNOCAL NORTH SUMATERA GEOTHERMAL (“UNOCAL”) was awarded the right for exploration and development of Sarulla project under JOC (Joint Operating Contract) with PERTAMINA who held the right to sell electricity to PLN under ESC (Energy Sales Contract).
1993 - 1997 UNOCAL had conducted drilling exploration in Silangkitang, Namora I Langit and Sibual Buali, acquired some part of lands and built office/warehouse.
1998 Economic crisis occurred in Asia, UNOCAL decided to halt Sarulla project.
2002 Unocal decided to return the development right to the Government of Indonesia.
2004 The Government of Indonesia assigned PLN to acquire the development right. PLN paid USD 60 Million to UNOCAL. PLN held a tender to decide a new developer who takes over such right from PLN.
2006 PLN finally assigned the second lowest bidder (consortium of Medco-Ormat-Itochu) to develop Sarulla project.
Dec 2007 PLN, PGE and consortium finally signed the first amendment of ESC/JOC. It was agreed that the consortium should pay PLN USD 70 Million upon Financial Close. The first amendment contained the clause about further amendment related with the bankability of the project.
2008 - 2009 Due to the world crisis after the so-called “Lehman Shock” and since tariff proposed in 2004 was no longer feasible, the consortium proposed tariff renegotiation. Kyushu Electric was approved by the Government of Indonesia as an additional member of consortium.
Mar 2011 New Tariff (3-stage tariff) Approval by Ministry of Energy and Mineral Resources.
Apr, 4 2013 PLN, PGE and consortium signed the second amendment of ESC/JOC.
Mar, 28 2014 Loan agreement was signed.
May, 23 2014 Financial Close