SLB and geothermal developer Star Energy Geothermal (SEG), a subsidiary of Indonesia’s Barito Renewables, announced a collaboration agreement this week aimed at accelerating technology development for geothermal assets.
Under the new agreement, SLB and SEG—which currently manages 866 MW of installed electricity capacity—will focus on developing and deploying technologies for subsurface characterization, drilling, and production of geothermal assets.
The two companies said they also want to improve the economics of conventional geothermal projects as well as the recovery rates of geothermal assets.
“In an industry where the risks and levelized cost of energy are perceived to be high, we look forward to working with [SEG] to deliver groundbreaking technologies that will lower project risks and improve the overall project economics of this clean, firm, and flexible energy source,” Irlan Amir, vice president of renewables and energy efficiency at SLB, said in a statement.
SLB has been positioning itself to play a larger role in Indonesia’s geothermal resources. In 2024, the service company conducted a study of the Kerinci geothermal field to evaluate its subsurface conditions.
SLB also said it supported an unnamed operator in Indonesia by reducing well costs by 70 to 75% and increasing the average drilling rate from 44 to 112 m/D. Additionally, the new geothermal wells enabled the operator to bring enough geothermal power online to offset 4.5 mtpa of CO2 in the country.
SLB previously worked with SEG on technology for well placement and to improve the efficiency and economics of drilling geothermal wells. In 2021, the companies completed the world’s first geothermal fracture modelling technique, helping create a permeability map that identifies subsurface productive areas. This modeling technique was used in the Darajat, Salak, and Wayang Windu geothermal fields.
"Our vision is to be among the largest and leading geothermal companies in the world,” Hendra Soetjipto Tan, president director of Barito Renewables and group CEO of SEG, said in a statement.
“With SLB’s breadth of technologies and our expertise in geothermal resource development and operations, we are confident that together we can solve the technical and economic challenges that are holding back the broader development of geothermal projects across the globe," he added.
