"We have drilled the first make-up well early this month. This is the first of the three wells that PGI expects to drill this year," PGI drilling engineer Phil Naïve said in a press briefing.
Naïve said PGI is embarking on this drilling program to meet the power plant steam demand once the planned Mak-Ban power plant rehabilitation project of the National Power Corp. (Napocor) is completed in 2003. PGI develops the geothermal fields in Mak-Ban and sells the steam to Napocor which, in turn, converts it into power.
The Mak-Ban power plant rehabilitation, funded by the Overseas Economic Cooperation Fund (now Japan Bank for International Cooperation), will increase its installed capacity from 370 MW to 402 MW.
Aside from Bulalo 104, the next two wells, Bulalo 105 and 106, are expected to be drilled after the first well is completed in October. The total estimated project cost for the three wells that will be drilled this year is $9.7 million. About $18 million (or $2.8 million for each well), on the other hand, will be spent for the drilling of six more make-up wells in 2003. Napocor, which owns the drilling fields, will provide the funds for the 2002-2003 make-up well drilling program.
These new make-up wells will have a depth of about 10,500 to 12,000 feet, deeper than the existing wells which have depth of only 6,000 feet.
According to Naïve, the new wells to be drilled were also designed to withstand higher temperature of 650 degrees compared to existing wells’ temperature of 103 degrees. The drilling of the first three wells, Naïve said, would be done by a main drilling contractor, DESCO, a Filipino-owned company which uses equipment from Century Resources (which owns one of biggest land rigs in the world that can dig up to 15,000 feet).
The drilling of deeper wells is part of the PGI’s resource optimization scheme which will increase its steam production to 7,750 kilo pounds per hour (khp) form the present level of 6,300 kph.
Apart from resource optimization, PGI maintenance superintendent Hector Morota said the other challenges in the Mak-Ban power plant area: The pending power plant rehab; community issues; industrial encroachment; PGI-NPC settlement; and competition in deregulated environment.
Aside from Mak-Ban, PGI also operates the Tiwi geothermal plant. These plants are set to undertake a two-year rehabilitation program. Tiwi in Albay has a 100 MW capacity. The plants’ combined capacity is seen to increase at 756 MW after being rehabilitated. Once rehabilated, the Tiwi plant can still run for 20 more years, while the Mak-Ban for another 40 years.