EDC eyes next international drilling in Indonesia

MANILA, Philippines - Energy Development Corp. (EDC) of the Lopez Group is considering Indonesia as the next site for its international drilling following its Chile venture, which is all set to start next month.

In a chance interview, EDC president and chief operating officer Richard Tantoco said the country’s largest geothermal producer is eagerly awaiting for the Indonesian government to auction the Graho Nyabu concession in Sumatra.

“Right now we’re working very hard in Indonesia. On our part, we have done the work to acquire what we call preliminary rights for a site and it’s up to the government now to auction that and we have to match. But we’ve been waiting for some time and it has yet to be auctioned,” he said.

Meanwhile, Tantoco said EDC is ready for its first major international drilling campaign in Chile next month.

“It’s good to go. We’re just waiting for the snow to melt because summer there is in December. Budget for the whole exploration stage including everything we spent so far like the roads and the camps is close to $45 million,” Tantoco said.

Another country EDC is actively scouting for opportunities is Peru, Tantoco said.

Locally, Tantoco said the Philippine geothermal industry is still loaded with huge resources but there are currently roadblocks in reaching its full potential.

Citing data from the Department of Energy, Tantoco said the Philippines has some 3,000 to 4,000 megawatts (MW) of  geothermal potential in which about 1,900 MW has already been developed.

“The balance of that that we believe is out there. The challenge is development in the likes of the middle of Cordillera, who will build your 250-kilometer transmission line? At some point in the future it will probably happen but right now the transmission cost are making it prohibitive,” he said.