Wednesday, March 2, 2016

Indonesia: Possible Chevron Geothermal Sale gets Local Interest

Medco interested in buying Chevron Geothermal (kontan)

After reports emerged Monday that Chevron Corp is considering a sale of its geothermal assets in Asia, President Director of Medco Power Indonesia Fazil Erwin Alfitri has stated an interest in buying the assets it has a chance. 

The company is planning to sell the assets to offset the prolonged slump in oil prices, Bloomberg reported on Monday.

The operations could fetch as much as $3 billion, said one of the people, who asked not to be named because the deliberations are private. Chevron, the largest US oil producer after Exxon Mobil Corp., is working with financial advisers on the sale, though no formal process has started, and Chevron may decide to keep the assets, the people said.

PT. Medco Power Indonesia (MPI)  is owned by Saratoga Power and Medco Energi International Tbk ( MEI ), Medco Energi International is the largest national listed energy company in Indonesia.

Medco Power is already involved in developing renewable energy sources such as geothermal. In 2006, the company was awarded a contract for development of the Sarulla geothermal project in North Sumatera. Medco is also involved in the 110 MW Ijen geothermal power plant project.