Geothermal drilling often presents unique challenges, and as a result, these costs are estimated at about 30%–45% of the overall project investment. Alongside exploration risk, drilling costs are one of the major barriers to funding, progressing, and improving the economics of geothermal power projects.
One major geothermal project developer in West Java, Indonesia, analyzed a 2015–2018 drilling campaign and estimated that 45.3% of NPT resulted in losses of more than USD 10 million. The analysis also identified several key issues causing the cost and time overruns:
The operator decided something must be done to reduce NPT cost overruns and improve each future well’s economics. Together with SLB, an integrated an structured approach to well construction across planning, execution, and postdrilling workflows was agreed on. The first phase for each well would be to design a custom drilling plan based on the data, hazards, risks, and geology to reduce uncertainty, mitigate risks, and enhance drilling efficiencies. The second phase consisted of monitoring the drilling operations, conducting real-time analysis, and formulating predictions to eliminate surprises. The third phase was postwell completion to look for opportunities for drilling improvements and to ensure that the data from the operation was captured and accessible digitally to provide best practices for future well planning. Throughout the process, the customer and SLB aligned the planned execution in the field and mobilization of the right equipment and materials to support well construction and reduce NPT.
Since the implementation of the new integrated well construction approach from 2020 to 2022, the customer has achieved remarkable results. There has been a 70% to 75% reduction in well cost per meter, decreasing from an average of USD 4,584 per meter to USD 1,309 per meter. Additionally, the average meters drilled per day increased significantly from 44 m/d to 112 m/d, showcasing substantial improvements in drilling efficiencies. Moreover, the new geothermal wells have enabled the customer to bring enough geothermal power online to offset 4.5 metric tons of CO2e per year in the country.
≥70%
reduction in well cost per meter, decreasing from an average of USD 4,584 per meter to USD 1,309 per meter.<CO2e
in the environment: 4.5 metric tons of CO₂e offset per year.>250%
increase in drilling rates, from 44 m/d to 112 m/d.