COMPETITION CASE: ‘GL’ GEOTHERMAL PROSPECT

IPFEST 2020 GEOTHERMAL CASE STUDY COMPETITION

A. Situation
Your company is one of the top international consulting company in energy industry. Today your
company is assigned to conduct the preliminary feasibility study of a geothermal prospect in Indonesia
where it should give the client an insight on how good the prospect is and what is the best way to
develop the prospect area based on your expertise, worldwide best practices and experience.

B. Suggested Guideline
Following is the suggested guideline for preparing your Preliminary Feasibility Study (Pre-FS) report:

Chapter Key Features/Subchapter Questions to be Considered in Report Making

The cover of your report
should represent the
reputation of your
company, which has been
acknowledged possess
deep understanding on
COVER geothermal industry in
Indonesia. Add also Pre-FS
project title, consultant
company logo, list of
project team member with
(desirable) position in your
fantasy company
 Is this prospect economically and technically
This one-page summary feasible to be developed?
EXECUTIVE must be able to give your  How many mega-watt of electricity (MWe) is
SUMMARY client your final available to be developed from this prospect?
recommendation on what  What is the strategy to develop this prospect,
(maximum 1 page) should your client do with by stages or full development since beginning?
this prospect.  What power plant technology will you
recommend and why?

IPFEST 2020
Geothermal Case Study Competition

 Indonesia geothermal
overview
 The importance of
geothermal energy for
INTRODUCTIO
Indonesia
N
 Major phases in a
geothermal energy
(maximum 3
project in Indonesia (as
pages)
regulated by GoI)
 Main challenges in
geothermal project in
Indonesia
GEOSCIENCE
REVIEW  Geological review
 Geochemistry review
(maximum 10  Geophysical review
pages)
 How much money the client must invest in this
project and what is the estimate IRR?
 How long will it take for the client to start seeing
revenue? and how long will it take for the project
to reach BEP (break-even point)?
 Why geothermal energy is important for
Indonesia? What is the role of geothermal energy
in Indonesia’s energy mix?
 What is the current status/situation of geothermal
industry of Indonesia? (potential vs installed
capacity)
 What are the project phases in developing
geothermal energy based on regulation in
Indonesia?
 What are the main considerations in each phase
of geothermal development project?
 What are the main challenges in
developing geothermal energy in
Indonesia?
 Which part of Indonesia has the lowest
electrification ratio? Will geothermal energy able
to help?
 What is the definition of exploration? What are
the key questions that should be answered
during the exploration phase?
 What are the main differences between
exploration and development phase
from geoscience objective point of
view?
 Why 3-G survey is important?
 Which survey activities will have to take place
earlier?
 What are the main challenges in conducting these
3-G surveys?
  What are the differences between direct and
indirect data? Which data are direct and
which data are indirect?
 Based on geology data; what can you infer?
 Based on geochemistry data; what can you infer?
 Based on geophysical data; what can you infer?
 If you have opportunities to redo or plan for
additional 3G data acquisition. What type of
survey that you recommended to conduct and
why?. What are the limitations of the existing 3-
G data to assess this prospect?
 What are the main features that should
be covered in a reservoir conceptual
model?
 How high the expected reservoir temperature?
 How is the expected reservoir permeability?
 What is the thinking process when you develop
your conceptual model? briefly explain the step-
 Conceptual model by-step of making your conceptual model
RESOURCE
 Preliminary resource  Which data that make you confident in
ASSESSMENT
assessment (before delineate the resource size ? How big is it? (area
drilling) – use at least and depth) – define in P10, P50, P90.
(maximum 6
2 (two) methods for  How many resource assessment methods are
pages)
comparison available and use as best practices in
geothermal industry now? What are the pros
and cons of each method? Which method you
believe more suitable for this stage?
 How many MWe is available based on your
resource assessment methods? (P10, P50, P90)
remember use minimum 2 methods
 How can you be sure that an economic resource
is available down there?
  What type of wells will be used for exploration
and delineation? (big, standard, slimhole or
thermal gradient), what is the decision-making
process behind the selection? (rationale or
objective of each well you propose) - show in
DRILLING the map the location and state the objective,
 Drilling/well targeting
STRATEGY direction, estimate total depth, estimate drilling
strategy for
FOR days, number of wells needed, and explain your
exploration and
EXPLORATION drilling strategy for the first well, second well,
delineation wells
AND and so on
 General casing
DELINEATION  What is your estimate on land area required in
schematic
the exploration and delineation phase? – think
 General geoscientific
(maximum 6 about what kind of drilling infrastructures
prognosis and drilling
pages) and facilities that you will need
hazard identification
 What are the geologic prognosis, expected
formation to drill, drilling hazards that you will
need to mitigate? (surface and sub-surface)
 How long will it take to complete the exploration
phase?
 What is your strategy in developing this
prospect, in stages or deploy full development
from the beginning? Why?
 What are your main considerations when
 Power plant selection
selecting the power plant type? (economical and
FIELD  Steamfield design
technical)
DEVELOPMEN  Drilling/well targeting
 Based on existing data where will you put your
T STRATEGY strategy for development
power plant and wells (including steamfield)?
wells (production and
draw the layout in the map or sketch an
(maximum 10 injection)
illustration from bird view
pages)  Project sustainability
 What type of wells will be used for development
strategy
(production and injection)? (big, standard,
slimhole or thermal gradient), what is the
decision-making process behind the selection?
(rationale or objective of each well you propose)
 - show in the map the location and state the
objective, direction, estimate total depth,
estimate drilling days and number of wells
needed
 What is your estimate on land area required in
the development phase? – think about what
kind of drilling infrastructures and facilities
that you will need
 How do you mitigate the adverse effect of
geothermal exploitation to the
surrounding environment and / or natural
geothermal manifestation?
 What is your strategy to ensure the sustainability
of the project? think from technical, economic
and social perspectives
 What are the stages you will have in a
geothermal project? How long will it take
to complete each stage?
 Project timeline /  What are the key milestones in a
PROJECT
schedule, stage gate geothermal project?
ECONOMIC
process and decision  What is the decision-making process to proceed
making from one stage to another stage? What is the
(maximum 4
 Estimate project cost go- no-go process in each gate?
pages)
 Financial feasibility  How much money will need to be spent by the
client in developing this project?
 When will this project start making money, BEP
and what is the IRR?

C. Hints
1. Your report will mainly be judged by:
a. Your knowledge and understanding on geothermal resource and technology.
b. The ability to implement your knowledge in geothermal geoscience and engineering in a real
geothermal development project planning.
c. How you present your recommendation to your client.
 2. Ensure that your team consist of member with various background or interest: geoscience, petroleum
/ reservoir, drilling, steam process / power plant, project management / economic.
3. It is important that your report shows the decision-making process of each recommendation you
propose.
4. Ensure that you have properly reference all your source, including personal communication to any
geothermal experts.
5. Several assumptions will be provided by the committee. You will have 2 (two) days since the case is
released to read the case and send queries to the committee for any assumptions that you need.
Committee will provide the assumptions if the requested assumptions are considered relevant.
6. Try to make your report as concise as possible. Put important and relevant information only. The
report outline above serves as a guideline only. Feel free to use your own style in making the report.
7. Remember that you have limited time to complete this report; thus, work in a team, don’t overdo it,
consult to the experts when needed, and always KEEP IT SIMPLE!
8. Remember to always HAVE FUN in the process!

D. Prospect Information
GL is a large compound stratovolcano straddling the border between East Java and Central Java,
Indonesia. Based on the Indonesian volcano classification, GL volcano is considered a Type A volcano
which has erupted more recently than the year 1600. The last eruption of this volcano was in 1885.
GL is situated in two provinces with easy accessibility due to this mountain passing through by
interprovincial highway and located nearby some popular tourism destinations. This area can be reached
by air transportation to YK and continue by road trip about 3 or 4 hours with decent road condition
 Figure 1. Physiographic map of active volcano in Java

Geology of GL

Figure 2. Surface geology map of GL Prospect Area

 Figure 3. Geological cross section of GL Prospect Area

Figure 4. Geological cross section of GL Prospect Area

Shallow Well at GL Prospect

The temperature gradient wells GL-1 has a final depth of 242.95 m, the well consists of interbedded
layer of lava flows (lava), pyroclastic flow, and pyroclastic fallout (pyroclastic fall) in the depth interval
200,90 to 201.80 m. The lithology thought to originate from GL volcanic activity in the past.
Petrographic & XRD -- Alteration minerals shows Argillic are presented and dominated by clay
minerals smectite, halloysite, and kaolinite which has indication of low formation temperature. Another
occurrence are med - high temperature alteration minerals (~180°C), such as illite and sericite which
interpreted as relic mineral.
Based on calculations with Horner plot method from the logging formation temperature of 52.4°C at
a depth of 187m it result the thermal gradient value of 17.1°C/100 meters.
Figure 5. Shallow temperature gradient wells GL-1

Figure 6. Shallow temperature gradient wells GL-2

Geochemistry

Figure 7. Map of thermal manifestation at GL prospect area

Thermal Manifestation Location

1. Tasin (APT)
2. Pablengan (APPB)
3. Nglerak (APN)
4. Mlangi (APM)
5. Jenawi-1 (APJ1)
6. Jenawi-2 (APJ2)
7. Ngunut (APNG)
8. Cumpleng (APCM)
9. Bayanan (APB)
10. Kawah Candradimuka (APKC)
 There are two fumaroles found in southern flank of GL volcano (Kawah Candradimuka - TKC and
Kawah Taman Sari - TKB, ~1 km from the summit)
 The vent temperatures from both areas are 93 deg C at the elevation >2500 m.
 Nine warm springs (with temperature ranges from 32 to 40 deg C) and one hot acid spring (temp 94 deg
C) were found surrounding GL volcano.
 Five warm springs are located in the north to north west of GL volcano, three in the west and one the
south west.
 The hot acid chloride spring is associated with fumarole Kawah Candradimuka.
 There are three chloride springs (APT, APPB and APN), two chloride-sulfate-bicarbonate springs
and four bicarbonate springs.

Figure 8. Thermal manifestation image GL prospect area

IPFEST 2020
Geothermal Case Study Competition
Fluid Chemistry Data

Gas Chemistry Data

Geophysics
35 MT TDEM Stations measured in 2010. Most station located south & southwest of GL Prospect Area.
Data quality ranges assumed from fair to good.

Figure 9. MT TDEM station distribution GL prospect

Figure 10. Resistivity map at 500m depth GL prospect area

Figure 11. Resistivity map at 1000m depth GL prospect area

Figure 12. Profile 1 of resistivity model GL prospect area

Figure 13. Profile 2 of resistivity model GL prospect area

Figure 14. Profile 3 of resistivity model GL prospect area

Figure 15. Profile 4 of resistivity model GL prospect area