Key Considerations in Developing Strategy for Geothermal Exploration Drilling Project in Indonesia

Abstract

Exploration phase has the highest uncertainty thus highest risk in a geothermal development project. Drilling cost is one of the critical components that significantly impact geothermal project development cost. In general, there are two major risks associated with drilling, consisting of resource risks and other risks. Resource risks are mainly associated with temperature and permeability. A robust conceptual model built from reliable data is necessary to assess both of resource risks and assist the well targeting process. Other risk comprises of drilling infrastructure, drilling operation issues, environmental aspect, and local community issue. The variation of drilling objectives in each stage of the project (exploration, appraisal, development) requires different strategies in order to minimize the associated risk and project cost. This preliminary study aims to summarize the thinking process or main considerations when developing the exploration drilling strategy which accommodate subsurface, environmental, drilling and construction perspectives based on literature reviews and authors experience. This study also present a generic guideline developed by the authors to assist the decision making process in developing strategy in a geothermal exploration project in Indonesia.