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Tender:Indonesia Launches Major Jailolo Geothermal Rig Tender to Accelerate West Halmahera Drilling Campaign

Indonesia’s Jailolo Geothermal Project Moves Forward as Geo Dipa Launches Major Rig Bundling Services Initiative By: Robert Buluma  Indonesia is once again signaling its determination to dominate the global geothermal industry. In a move that could reshape geothermal exploration activity in eastern Indonesia, PT Geo Dipa Energi has announced an Early Market Engagement (EME) event for the procurement of Rig Bundling Services for the Jailolo Geothermal Working Area in West Halmahera, Indonesia.The announcement may appear procedural on the surface, but for geothermal developers, drilling contractors, oilfield service providers, rig operators, and energy investors, it represents something much larger: the next stage in Indonesia’s aggressive expansion of geothermal energy capacity and a potentially transformative moment for geothermal development in one of the world’s most volcanically active regions.The Jailolo geothermal project sits within a strategic zone of immense geothermal pote...

Nabors Completes Remote East Indonesia Campaign 8 Days Ahead of Schedule

Drilling Ahead of Schedule in the Ring of Fire: How Nabors and Star Energy Geothermal Are Unlocking East Indonesia’s Deep Heat

In the global race to decarbonize and diversify energy sources, geothermal energy has long been the quiet overachiever—reliable, renewable, baseload, and incredibly potent. Yet for all its promise, geothermal development has historically been hampered by high upfront costs, drilling risks, and the sheer logistical challenge of operating in volcanic, often inaccessible terrain. That narrative may finally be changing. A recent exploration geothermal drilling campaign in East Indonesia, executed by Nabors Industries for Star Energy Geothermal, has demonstrated that with the right combination of advanced technology, seasoned personnel, and meticulous planning, even the most remote geothermal prospects can be drilled faster, safer, and more efficiently than industry norms would suggest.

The campaign—successfully completed eight days ahead of schedule and with zero lost-time incidents—marks a significant milestone for Indonesia’s geothermal sector. It proves that deep, high-temperature wells in one of the country’s most isolated regions are not only feasible but can be delivered with the same rigor and pace as conventional oil and gas projects. This article explores the technical, logistical, and strategic dimensions of that achievement, drawing on public statements from Nabors and Star Energy Geothermal, as well as broader industry context.

1. The Big Picture: Why East Indonesia’s Geothermal Potential Matters

Indonesia sits squarely atop the Pacific Ring of Fire, home to an estimated 40% of the world’s geothermal reserves. According to the Ministry of Energy and Mineral Resources (ESDM), the country’s total geothermal potential is around 29 gigawatts (GW), yet only about 2.3 GW has been harnessed to date. The majority of developed fields are in West Java (e.g., Wayang Windu, Darajat, Salak) and North Sumatra (Sarulla), leaving the eastern archipelagos—from Sulawesi to Maluku and Papua—largely untapped.

The reasons for this underdevelopment are not technical alone. East Indonesia suffers from a lack of supporting infrastructure: few roads, limited port facilities, unreliable telecommunications, and a scarce supply of fresh water and heavy equipment. Moreover, the region’s remoteness drives up mobilization costs for drilling rigs, casing, cement, and consumables. Many developers have shied away, deeming the risk-reward balance unfavorable.

Star Energy Geothermal, one of Indonesia’s largest geothermal operators (with assets like Wayang Windu and Salak), has taken a different view. By partnering with Nabors—a global leader in drilling technology with over 80 years of experience—the company set out to prove that East Indonesia’s geothermal heat can be unlocked economically and safely. The recently completed exploration campaign involved drilling the first two geothermal wells in that specific area, establishing a proof-of-concept that could catalyze further investment across the region.

2. Mobilizing to One of the Country’s Most Remote Locations

Any drilling project begins with logistics, but in East Indonesia, logistics is the project. The location described by Nabors as “one of the country’s most remote locations” likely involved a site accessible only by sea and then by unpaved, seasonal roads—or even helicopter. While the exact coordinates are commercially sensitive, industry sources familiar with eastern Indonesian geothermal prospects point to areas in North Sulawesi, Halmahera, or Seram, where volcanic activity is intense but human presence minimal.

The mobilization phase included:

· Transporting a full land drilling rig (likely a medium-depth rig rated for geothermal temperatures up to 300°C and depths beyond 2,500 meters).
· Supporting equipment: Generators, mud pumps, solids control systems, cementing units, casing, drill pipe, and BOPs (blowout preventers).
· Camp and life support: Accommodation, kitchen, medical clinic, water treatment, waste management, and power generation for a crew of 50–80 people.
· Spare parts and consumables: Months’ worth of bits, drilling fluids, and spare components, given the long lead time for resupply.

Nabors emphasized that the rig itself was “more than a rig”—it was the combination of people, process, and equipment. That phrase captures a critical truth: even the most advanced top drive is useless if the team cannot assemble it on a jungle hillside during monsoon rains. The successful mobilization, executed without incidents, reflects years of institutional knowledge in remote drilling, including in Alaska, the Sahara, and the jungles of Latin America.

3. Drilling Geothermal Wells: A Different Beast

For readers more familiar with oil and gas drilling, geothermal drilling presents unique challenges:

· Higher temperatures: Bottom-hole temperatures often exceed 250°C (482°F), degrading conventional electronics, elastomers, and drilling fluids.
· Hard, abrasive formations: Volcanic rocks such as basalt, andesite, and granite can destroy roller-cone bits in hours, increasing trip times.
· Lost circulation: Fractured geothermal reservoirs often consume vast amounts of drilling fluid, complicating well control and increasing costs.
· Corrosive chemistry: Hot brines containing chlorides, sulfates, and carbon dioxide accelerate corrosion of casing and completion equipment.
· H₂S risk: Hydrogen sulfide, a toxic and flammable gas, is common in geothermal systems, requiring special monitoring and handling protocols.

Against this backdrop, the Nabors team drilled two exploration wells eight days ahead of schedule. In geothermal drilling, where delays of weeks or months due to lost circulation or stuck pipe are common, this is exceptional. It implies that the team encountered few unplanned events and was able to maintain a high rate of penetration (ROP) while managing downhole risks effectively.

4. Key Technologies That Made the Difference

Nabors credited three specific technologies for the campaign’s success: Canrig® Top Drive system, Nabors Casing Drive System™ (CDS) , and RigCLOUD® digital platform. Each addresses a distinct pain point in geothermal drilling.

4.1 Canrig® Top Drive System

Unlike conventional rotary tables that rotate the entire drill string from the surface, a top drive suspends from the derrick and applies torque directly to the top of the drill pipe. For geothermal wells, top drives offer:

· Faster connection times: The driller can add a 30‑ft stand of pipe in 30–60 seconds, versus several minutes with a kelly.
· Better hole cleaning: Top drives allow continuous rotation while tripping (back-reaming), reducing cuttings buildup.
· Improved directional control: In deviated geothermal wells (often required to intercept permeable fractures), top drives enable sliding and rotating modes without losing torque.
· Safer handling: Automated pipe handling reduces manual labor and exposure to falling equipment.

Canrig® is a Nabors-owned brand, meaning the hardware and software are fully integrated with the rig’s control system. For this campaign, the top drive’s ability to operate reliably at high ambient temperatures and in dusty, humid conditions was tested and validated.

4.2 Nabors Casing Drive System™ (CDS)

Casing is the steel pipe that lines the wellbore, protecting it from collapse and isolating different zones. Traditionally, casing is run by a separate crew using a casing running tool, often a slow and risky process. The Nabors CDS integrates casing driving into the top drive itself, allowing the driller to:

· Rotate and reciprocate casing while cementing, improving displacement and reducing channeling.
· Apply torque to work casing past tight spots or ledges—common in fractured volcanic formations.
· Save rig time by eliminating the need to pick up a separate casing stabbing tool.

For geothermal wells, where high temperatures cause casing expansion and contraction, the ability to rotate casing during cementing ensures a more uniform cement sheath, which is critical for zonal isolation and long-term well integrity. By deploying CDS, the Nabors team likely shaved multiple days off the casing and cementing operations alone.

4.3 RigCLOUD® Digital Platform

RigCLOUD is Nabors’ proprietary real-time data aggregation and analytics system. Sensors across the rig monitor dozens of parameters: weight on bit, torque, vibration, mud flow rate, temperature, pressure, gas levels, and equipment health. The data stream to a cloud-based dashboard accessible from the rig, the regional office, and even global support centers.

In East Indonesia, where internet connectivity is often unreliable, RigCLOUD can cache data locally and synchronize when bandwidth permits. Key benefits observed during this campaign likely included:

· Predictive maintenance: Algorithms detected early signs of bearing wear in mud pumps or top drive motors, allowing proactive replacement during planned downtime.
· Drilling optimization: Real-time comparison of actual ROP against offset wells (or model predictions) guided bit selection and weight/torque settings.
· Safety alerts: Automated triggers for high H₂S, abnormal pipe movement, or kick (influx of formation fluid) gave the crew seconds to respond.
· Remote expert support: Nabors drilling engineers in Jakarta, Singapore, or Houston could review the data and recommend adjustments without flying to site.

By turning raw data into actionable intelligence, RigCLOUD helped the team avoid many small inefficiencies that, cumulatively, saved eight days.

5. Delivering Incident-Free Performance

Beyond the schedule beat, the campaign achieved zero lost-time incidents (LTIs) and likely zero recordable injuries—a remarkable feat given the hazards of geothermal drilling: high-pressure steam, corrosive fluids, heavy lifts, and helicopter or boat logistics. Safety culture at Nabors and Star Energy appears to have been deeply embedded, from pre-tour meetings to job safety analyses (JSAs) for every non-routine task.

Specific safety measures implied by the technology suite include:

· Remote control of pipe handling (via top drive and CDS) reducing hands-on pipe.
· Real-time H₂S monitoring with audible and visual alarms.
· Automated slips and elevators preventing dropped objects.
· Daily safety stand-downs and a “stop work authority” culture.

In geothermal drilling, incidents are not just human tragedies; they derail schedules, damage equipment, and often incur regulatory fines or permit suspensions. An incident-free campaign of this complexity is a testament to both planning and execution.

6. Collaboration as a Core Competency

Nabors made a point of congratulating “both teams” for their dedication and collaboration. Successful remote geothermal drilling requires close coordination between the operator (Star Energy Geothermal) and the drilling contractor (Nabors). In practice, this collaboration covers:

· Geoscience updates: As drilling progresses, geologists revise the prognosis for formation tops, fractures, and temperatures. Nabors adjusts mud weight, bit selection, and trajectory accordingly.
· Logistics synchrony: Supply vessels, trucks, and helicopters must be scheduled weeks in advance. Any change in well depth or casing program cascades through the supply chain.
· Emergency response: Shared drills for blowout, fire, medical evacuation, and H₂S release ensure seamless execution.
· Cost and performance tracking: Joint daily cost vs. budget meetings identify overruns early.

The fact that the two teams worked together effectively in a stressful, isolated environment suggests that both organizations invested time in team-building, clear communication protocols, and mutual respect.

7. Implications for Indonesia’s Geothermal Future

The success of this exploration campaign sends several powerful signals to policymakers, financiers, and other developers:

· Remoteness is not a barrier: With modern rigs, digital connectivity, and experienced crews, East Indonesia can be developed at acceptable risk and cost.
· Geothermal can be drilled with oil & gas efficiency: By applying top drive, casing drive systems, and real-time analytics, the drilling industry has closed much of the performance gap between geothermal and conventional hydrocarbon drilling.
· Scheduled certainty reduces financing costs: Banks and development finance institutions (e.g., World Bank, ADB, Green Climate Fund) are more willing to lend when they see proven performance. Eight days ahead of schedule means lower interest costs and faster revenue generation.
· Support for national goals: Indonesia aims to reach 23% renewable energy by 2025 (currently ~13%). Geothermal is the only renewable that provides 24/7 baseload power without batteries. Each new successful exploration campaign moves the needle.

If follow-up appraisal wells confirm commercial flow rates, the two exploration wells drilled by Nabors could lead to a new geothermal power plant of 50–100 MW, enough to power hundreds of thousands of homes in eastern Indonesia while displacing diesel generators.

8. Challenges That Remain (And How They Were Overcome)

No project is without difficulties. While Nabors and Star Energy have emphasized success, it is worth acknowledging typical hurdles that were likely overcome:

· Supply chain fragility: A single delayed vessel could shut down drilling for weeks. The team likely maintained safety stock of critical items (cement, bits, top drive spares) at a forward supply base.
· Local content requirements: Indonesian regulations require use of local labor, goods, and services where possible. Nabors likely trained local workers and sourced camp catering, security, and light trucks from nearby towns.
· Weather: East Indonesia experiences heavy rainfall and occasional typhoons. Rig move and drilling plans probably included weather windows and contingency downtime.
· High-temperature electronics: Standard top drive sensors may fail above 85°C ambient. Canrig® systems are rated for higher temperatures, but cooling boxes or shielding might have been necessary near the wellhead.

The eight-day ahead schedule strongly suggests that the team anticipated these challenges and built buffers that ultimately weren’t needed—or solved problems so quickly that no buffer was consumed.

9. Lessons for the Global Geothermal Industry

While this campaign took place in Indonesia, its lessons apply worldwide, from the Rift Valley in East Africa to the Andes in South America, from Iceland to the Philippines.

First, bundled technology works. By supplying top drive, casing drive, and digital platform as an integrated system, Nabors reduced interface risks. Operators considering geothermal should ask: does our drilling contractor offer similar integration, or are we left to piece together third-party components?

Second, remote operations require a different mindset. The eight-day gain came not from drilling faster, but from drilling consistently—no waiting on decisions, no missing parts, no communication lags. Digital platforms like RigCLOUD can help, but they must be supported by empowered onsite leaders who can make decisions without phoning headquarters.

Third, geothermal deserves more R&D focus. Compared to oil and gas, geothermal drilling has seen less innovation. The success of CDS and high-temp top drives shows that adapting existing oil and gas technologies (with minor modifications) can yield immediate gains. Governments and energy agencies should fund demonstration projects specifically to test these adaptations.

10. Conclusion: A Milestone, Not a Finish Line

The Nabors–Star Energy Geothermal campaign in East Indonesia is a genuine achievement: two first-ever geothermal wells in a remote area, drilled eight days early and incident-free, using a suite of advanced technologies and close collaboration. It proves that the geothermal industry can move beyond “small and slow” to “efficient and replicable.”

But it is not yet a commercial success. Exploration wells are a necessary step; appraisal and production drilling, plus construction of a steam gathering system, power plant, and transmission line, are still to come. Moreover, the economics depend on the resource’s actual flow rate, temperature, and chemistry. Not every exploration success becomes a power plant.

Nevertheless, the signal is clear: East Indonesia is open for geothermal business. For Star Energy, this campaign de-risks a potentially large resource in a region starving for clean, reliable power. For Nabors, it showcases their ability to deliver turnkey drilling solutions in the world’s most challenging environments. For Indonesia, it is another brick in the renewable energy road.

As the world seeks to decarbonize without sacrificing energy security, geothermal stands ready—if only we drill it. The lessons from East Indonesia show that with the right people, process, and equipment, the heat beneath our feet can be reached faster and safer than ever before. And in the fight against climate change, “ahead of schedule and incident-free” is exactly what we need.


Source: Petromindo, Nabors Industries 

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