Wednesday, April 6, 2016

Indonesia, Philippines: Two Companies Vie for Chevron Geothermal

Engie, Marubeni eye Chevron geothermal assets (Energy Voice)

Engie, a French multinational electric utility company and Marubeni, a sōgō shōsha headquartered in Ōtemachi, Chiyoda, Tokyo, Japan, are said to be among several suitors planning to bid for Chevron’s geothermal energy blocks, according to reports.

Buyers for the assets, which are estimated to be worth around $3billion, are said to be attracted by the opportunity to gain control of large blocks of geothermal assets located in Indonesia and the Philippines.

A banker involved in the process said:”There’s a lot of jostling going on to see who’s teaming up with whom. I expect to see companies forming consortiums for this big sale. The Japanese are key as whoever ties up with them would have access to low cost funding and that boosts their chances.”

Indicative bids for the assets are expected later this month. Chevron is said to have kicked off the auction last month for the potential sale.

Two Chevron subsidiaries operate geothermal projects in Salak and Darajat fields in west Java with a capacity to generate nearly 650 megawatts of electricity.

Chevron has a 40 percent interest in Philippine Geothermal Production Company, Inc. (PGPC). PGPC develops and produces steam energy for the third-party-owned and -operated Tiwi and Mak-Ban geothermal power plants in southern Luzon. They have a combined generating capacity of 692 megawatts.

Chevron also has an interest in the Kalinga geothermal prospect area in northern Luzon. The company continues to assess the prospect area. If successful, the steam resources could support 100 megawatts of capacity.