Indonesia's geothermal sector attracts UK firm

BP Plc is assessing expansion in Indonesia via geothermal energy.

According to Energy and Mineral Resources Minister Jero Wacik, the UK-based energy firm had been mulling the plan ever since the company’s chief executive, Bob Dudley, met with President Susilo Bambang Yudhoyono.

The Indonesian government was curious as to whether BP would enter the geothermal energy sector after another energy giant, US-based Chevron, had successfully become the world’s largest geothermal power producer after years of operating in Indonesia, Jero said.

BP has sent teams to Indonesia twice in recent months to explore the possibility.

While BP continued to study the prospect of entering the geothermal energy sector, the Energy and Mineral Resources Ministry would allow the company to conduct geothermal exploration surveys in 28 locations across Indonesia, he added.

“The Energy and Mineral Resources Ministry and the Forestry Ministry have signed an agreement allowing geothermal exploration in these 28 locations,” he said.

In his speech, which was delivered before hundreds of participants at the 19th Conference of the Electric Power Supply Industry in Nusa Dua, Bali on Monday, Jero also encouraged investors to pour their money into Indonesia’s geothermal industry.

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