Chile: ENAP Could Reduce Stake in Cerro Pabellon Geothermal Project

Chile ENAP mulls reducing stake in geothermal project - report (SeeNews)

Chilean state-owned oil company Empresa Nacional del Petroleo (ENAP) is thinking of reducing its share in the 48 MW Cerro Pabellon geothermal project to maintain focus on its core business.

Cerro Pabellon is controlled by Enel Green Power SpA with a 51% stake, while ENAP holds the remainder.

ENAP's contribution has decreased to 40% since the start of the project in July and could shrink further to a 20% share, Pulso reported on Tuesday, quoting unnamed sources. CEO Marcelo Tokman has confirmed to the newspaper that the company is financing part of the new investments, reducing its participation.

Since the beginning, ENAP has sought to introduce new technology in the country rather than own the asset. Reportedly the company has an agreement with its partner to make minimum contributions and ponder the additional amounts.

After starting construction, which is estimated at nearly USD 320 million (EUR 294.3m), Enel Green Power has said it is funding the project with its own resources. The plant is expected to be completed by the first half of 2017.

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