by Myrna Velasco – June 16, 2016
from Manila Bulletin
With the spudding of targeted exploratory well, drilling for the extraction of steam resource has officially commenced for the planned Mabini geothermal power project.
Holders of Geothermal Service Contract No. 8 – Basic Energy Corporation and Trans-Asia Oil and Energy Development Corporation –
both announced at the Philippine Stock Exchange (PSE) the spudding of the well in San Teodoro in Mabini, Batangas on June 15.
“The spudding will start the drilling operations aimed at reaching a target depth of at least 1,500 meters to determine the temperature and other qualities of the steam resource,” Basic Energy has noted in particular.
It added that the drilling operations “will take about three months to reach the target depth.”
The drilling of the exploratory well, Trans-Asia added, shall “test a potential geothermal resource previously identified by geophysical and geological techniques.”
Basic Energy secured the approval of the Department of Energy (DOE) last year on the 25-percent interest it farmed out relative to the proposed Batangas geothermal facility.
Trans-Asia had been the taker of the unloaded equity. Together, the two firms indicated that they will pursue the project’s development – from resource exploration to the setting up of a power facility. Based on initial blueprint, the power plant could be for 20 to 60 megawatts of capacity – that could then help shore up supply for Luzon grid.
The deal prescribes that, “Trans-Asia will shoulder 25-percent undivided participating interest in the rights, interests, privileges, duties and obligations” in the project.
If ever, this will be the second greenfield geothermal project that will be pursued in the Luzon grid – after the 20MW Maibarara project in which Trans-Asia is also an interest holder. (MMV)