Geothermal Drilling Cost Optimization in Indonesia: A Discussion of Various Strategies

Abstract

As a country that is believed to have one of the largest geothermal energy potential in the world, Indonesia is currently in the effort of achieving the target of utilizing this potential. One of the most significant obstacles in the process of achieving this target is the high drilling cost, which has become a topic of discussion in many geothermal forums in Indonesia. Geothermal drilling activities is commonly known to have expensive cost components which can give immediate effect to the total cost of the whole geothermal project. Therefore, it is highly important to manage from the early planning phase to the execution in order to optimize the actual cost at the end of the drilling project. The authors of this study believe that the cost can be optimized if all partakers involved in a geothermal project are all in the same frequency of understanding the importance of optimizing the project cost, meaning that all effort must be integrated and thorough. This study attempts to compile a list of relevant ideas from authors and any published studies on ways or strategies to reduce or optimize geothermal drilling cost in Indonesia. This work is expected to trigger further study with more focus on each area or factors that contribute to drilling cost.