Project Sorik Marapi Geothermal Power

KS ORKA entered Indonesia’s energy industry in 2016 by acquiring the 240 MW Sorik Marapi Geothermal project in Mandailing Natal, North Sumatera. KS Orka stepped in to acquire 95% of the shares in April 2016 and completed the transaction in mid-August 2016.

PT Sorik Marapi Geothermal Power received the license to develop the geothermal concession area in Mandailing Natal Regency, North Sumatera Province through the Decree of Mandailing Natal Regent Number 540/525/K/2010. The license was then updated as per Geothermal Law Number 21 year 2014 into Izin Panas Bumi (IPB) through Decree of Minister of Energy and Mineral Resources Number 2765 K/30/MEM/2015. The license provides the legal basis to PT SMGP to manage and develop geothermal resources for indirect use within the concession area.

The concession area of PT Sorik Marapi Geothermal Power is located within the administrative area of the Mandailing Natal district (Kabupaten Mandailing Natal), 350km south-southeast of Medan, the capital of North Sumatra. The project site can be accessed from Jakarta through any of the airports located in Medan, Sibolga and Padang, with Sibolga as the closest airport. The land travel from Sibolga airport to Panyabungan normally takes about four hours, while from Panyabungan to SMGP site takes 30-45 minutes.

The concession covers an area of 629 km2 and lies within a graben feature which is transected by several segments of the Sumatran Fault System. Manifestation of geothermal resources in form of hot springs, fumaroles and bubbling pools are found within the areas. Preliminary study considers there are 4 (four) potential geothermal resource areas. Under the new management, PT Sorik Marapi Geothermal Power accelerated the exploration activities as determined by the preliminary study result.With the support of well-experienced experts and strong financial backing, the project company began its first exploration drilling on 15 October 2016 and as of June 2017, SMGP has completed 7 wells with flow test results of over 40 MW to date.