Panax Geotherma (Australia) and Indonesian company PT Bakrie Power have entered into an agreement under which the two companies are forming a joint venture for exploring, development and power generation from geothermal resources in Indonesia.

The new joint venture will deal with geothermal project areas previously awarded to PT Bakrie Power, and also areas for which the company has already submitted tender interests. The joint venture will also explore new geothermal development opportunities in the country.

Initially, both companies will focus on the Sokoria project development, located on the Island of Flores, with 30 MW of capacity. A power supply agreement has also been signed with PT Dairi Prima, for 25 MW of power from geothermal existing sources in Sibayak, for the company's zinc and lead mine operation in northern Sumatra. The Sibayak geothermal field could see expansion of capacity, but this is still under negotiation.

[source: Panax Geothermal]