ASX/Media Release

Origin Energy Limited (‘Origin’) advises that, as part of a consortium, it has been successful in bidding for a geothermal exploration concession in Northern Sumatra, Indonesia.

Origin and Tata Power of India, in consortium with PT Supraco Indonesia, have been awarded the Sorik Marapi geothermal exploration concession following a competitive bidding process. It is estimated the Sorik Marapi concession could support the development of 200–300 MW of geothermal generation capacity. Origin will hold a 47.5 per cent effective interest in the concession.

The Sorik Marapi resource will be tested as part of an exploration program over the next 18 months. If the exploration program is successful, a subsequent appraisal program will be conducted. If this appraisal is also successful and appropriate commercial agreements have been secured, construction is expected to begin in late 2012.

Origin’s Executive Director, Finance and Strategy, Ms Karen Moses said the joint venture is consistent with Origin’s strategy of pursuing exploration opportunities for energy resources near growing markets.

“Origin had been assessing geothermal opportunities in the region since early 2009 and this joint venture is reflective of our belief that geothermal can provide large scale renewable base load energy,” Ms Moses said.

“Sorik Marapi is a ‘conventional’ geothermal resource similar to established geothermal generation in New Zealand. Origin has expertise in this area through its majority owned subsidiary Contact Energy – one of New Zealand’s leading generators of geothermal energy,” she said.

Tata Power’s Managing Director, Mr Prasad R Menon said, “Tata Power has a strong mission to achieve at least 25 per cent of its generation portfolio through renewable sources of energy by 2017, geothermal energy being one of the prime renewable growth engines. The Sorik Marapi exploration is testament to our faith in the untapped potential of geothermal energy,” he said.

Indonesia is situated on the Pacific ‘Ring of Fire’ and is expected to have approximately 27,000 MW of potential conventional geothermal resources – considered the largest in the world. Indonesia currently has 1,196 MW in geothermal generation in operation.

In addition to Sorik Marapi, Origin has interests in a number of geothermal exploration joint ventures located in the Cooper Basin, South Australia. These joint ventures are focussing on two distinct sources of geothermal energy including: Enhanced Geothermal Systems (EGS) which seeks to extract heat from hot fractured granites at over 4 kilometres depth and, hydrothermal systems which will seek to commercialise heat from lower temperature sandstone reservoirs at depths of approximately 2 kilometres below the Earth’s surface.

View Geothermal energy factsheet 

View OTP Geothermal Indonesia release 

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About Origin Energy
Origin Energy is Australasia’s leading integrated energy company focused on gas and oil exploration and production, power generation and energy retailing.

Listed in the ASX top 20 the company has approximately 4,000 employees, is a leading producer of gas in eastern Australia, is the largest owner and developer of gas-fired electricity generation in Australia and is a leading wholesaler and retailer of energy. The company services more than 3.5 million electricity, natural gas and LPG customers across Australia, New Zealand and the Pacific. Origin’s strategic positioning and portfolio of assets provide flexibility, stability and significant opportunities for growth in the ever changing energy industry. Through Australia Pacific LNG, its 50:50 joint venture with ConocoPhillips, Origin is developing Australia’s largest CSG reserves base into the country’s largest CSG to LNG project.

In New Zealand, Origin is the major shareholder in Contact Energy, the country's leading integrated energy company, operating geothermal, thermal and hydro generation facilities and servicing electricity, gas and LPG customers across both the North and South islands. Origin also operates several oil and gas projects in New Zealand and is one of the largest holders of petroleum exploration acreage in the country.

Origin has investments in renewable energy, a strong focus on ensuring the sustainability of its operations and is the largest green energy retailer in Australia.

For more information go to www.originenergy.com.au

About Tata Power
Tata Power is India's largest private sector power utility with an installed generation capacity of over 2900 MW and a presence in all the segments of the power sector viz Generation (thermal, hydro, solar and wind), Transmission, Distribution and Trading. The Company has successful public-private partnerships in Generation, Transmission and Distribution - "North Delhi Power Limited" with Delhi Vidyut Board for distribution in North Delhi, 'Powerlinks Transmission Ltd.' with Power Grid Corporation of India Ltd. for evacuation of Power from Tala hydro plant in Bhutan to Delhi and 'Maithon Power Ltd.' with Damodar Valley Corporation for a 1050 MW Mega Power Project at Jharkhand. It has acquired 30% stake in Coal Companies at Indonesia and is developing the first 4000 MW Ultra Mega Power Project at Mundra (Gujarat) based on super-critical technology. With its track record of technology leadership, customer care and redefining contours of the Indian power sector, Tata Power is poised for a five-fold growth and committed to 'lighting up lives' for generations to come.

For more information go to www.tatapower.com

About PT Supraco
PT. Supraco Indonesia is a privately owned company with over 30 years experience in providing integrated services to Oil & Gas Industry in Indonesia.

Founded in 1979 by the name of PT. Summa Prakarsa Corporation, the company is part of Radiant Group, which is one of the most successful companies in Indonesia energy sector.

For more information go to www.supraco.com