Geothermal Exploration Rules Tightened: Exploration Performance Guarantee May Be Withdrawn if Drilling Targets Are Missed

The Government is currently preparing a Draft Regulation of the Government on the Utilization of Geothermal Energy for Electricity (“Draft Regulation”), which will revoke and replace Regulation of the Government No. 7 of 2017 on Geothermal for Indirect Utilization, as partially revoked by Regulation of the Government No. 25 of 2021 on the Implementation of the Energy and Mineral Resources Sector (collectively “Regulation 7/2017”).[1] The Draft Regulation is intended to strengthen geothermal governance and business processes and simplify the work area offering process, and it also implements several provisions of Law No. 21 of 2014 on Geothermal, as amended by Law No. 6 of 2023 on the Stipulation of Government Regulation in Lieu of Law No. 2 of 2022 on Job Creation into Law (collectively “Law 21/2014”).[2]