posted January 03, 2016 at 11:25 pm by Alena Mae S. Flores
Energy Development Corp. wants to
resume drilling for the Mariposa geothermal project in Chile this year, after
deciding to postpone it in October, a company official said.
“We’re looking to resume drilling
this year,” EDC chief finance officer Nestor Vasay said. He said the
company was watching the movement of world oil prices.
EDC decided to postpone the
three-well drilling campaign for the Mariposa project amid the continuing decline
in world prices.
Oil prices fell because of
oversupply in the US and the Organization of Petroleum Exporting Countries’
decision not to cut back production.
“In the light of the challenging
project economics resulting from the recent fall in prices of competing fossil
fuels, EDC has decided to postpone the three-well drilling campaign for the
Mariposa project in Chile originally scheduled mid-October this year,” the
company said earlier.
EDC said it continued to pursue
development activities at the Mariposa project with greater focus, including
conducting further environmental and technical studies for the steamfield,
power plant and transmission line interconnection.
“Efforts will likewise be undertaken
to identify potential customers and test the pricing levels at which they are
willing to enter into long-term power off-take agreements given today’s fossil
fuel prices,” it said.
EDC is also negotiating with the
Inter-American Development Bank to secure funding support under the exploration
risk mitigation program administered by the bank.
The project, located in the Andes
Mountains some 300 kilometers south of Chile’s capital city of Santiago, covers
two geothermal exploitation concessions, Pellado and Laguna del Maule, the
rights to which are owned by Compañía de Energía Limitada where affiliates of
EDC and Canada-based Alterra Power Corp. hold 70-percent and 30-percent stakes,
respectively.
“EDC continues to be committed in
developing the Mariposa project and remains optimistic on the long-term prospects
of the Chilean electricity market,” the company said.
EDC earlier allocated P3.8 billion
for its overseas geothermal exploration projects in Latin America, with bulk of
the amount allocated for the Mariposa prospect.
EDC hold stakes in five concessions
and 19 applications in Chile and Peru. The company acquired the local
subsidiaries of Australian geothermal firm Hot Rock Ltd. and signed joint
venture agreements with TSX-listed and global renewable energy player Alterra
Power.
The company completed its survey
activities in GrahoNyabu in Sumatra, and the results of the initiative, which
EDC submitted in 2013, shall be used by the Indonesian Ministry of Energy and
Mineral Resources for its upcoming tender for the GrahoNyabu concession.
EDC has also established offices in
Latin America and Indonesia.
EDC, an affiliate of First Gen
Corp., owns 1,441 megawatts of generating capacity of which 1,159 MW is
geothermal, 150 MW is wind, 132 MW hydro and 4 MW solar.
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