EDC stops drilling activity in Chilean geothermal project

MANILA, Oct 14 (PNA) — Lopez-led Energy Development Corp. (EDC) halted the drilling activity in its Chilean geothermal project due to drop in the prices of fossil fuels.

In a statement, EDC disclosed that the three-well drilling campaign was initially set during mid-October this year.

EDC stressed it will invest in the technical studies for the front-end engineering design (FEED) and the environmental impact assessment (EIA) of the project. It will include steamfield, power plant and transmission line interconnection.

The company added it will continue to pursue development activities, such as environmental and technical studies.

EDC said it will also identify potential customers and test pricing levels for long-term power supply agreements (PSAs).

The company will also negotiate with the Inter-American Development Bank (IDB) for funding support through the exploration risk mitigation program.

The project covers two geothermal exploitation concessions, namely Pellado and Laguna del Maule, with Compañía de Energía Limitada (ENERCO) holding the rights. ENERCO is composed of EDC at 70 percent and Alterra Power Corp. at 30 percent. (PNA)