Chevron to sell geothermal assets in Indonesia and Philippines
Philippine conglomerate Ayala Corporation (AC), through its wholly owned subsidiary AC Energy, has signed an agreement to acquire the geothermal assets of Chevron in Indonesia and the Philippines.
AC Energy, as part of separate Indonesian and Philippine consortia, has signed shares sale and purchase agreements with Chevron Global Energy, Union Oil Company of California and their relevant affiliates to acquire Chevron’s geothermal operations.
In Indonesia, Chevron operates the Darajat and Salak geothermal fields which have a combined capacity of 235MW equivalent of steam and 402MW of electricity.
The company also has 40% interest in the Philippine Geothermal Production Company, which operates the Tiwi and Mak-Ban geothermal field in Southern Luzon and supplies steam to power plants with a combined capacity of around 700MW.
Chevron Upstream executive vice-president Jay Johnson said: “These assets deliver reliable energy to support the needs of Asia-Pacific’s growing economies.
“This sale is aligned with our strategy to maximize the value of our global upstream businesses through effective portfolio management."
The assets being considered for sale were valued at $3bn, Reuters reported.
The Indonesia consortium, named Star Energy Geothermal (Salak-Darajat), comprises AC Energy with 19.8% stake, Star Energy Group, Star Energy Geothermal, and Electricity Generating Public Company.
Additionally, the Philippine joint venture company Acehi-Star Holdings consists of AC Energy and Star Energy Group.
AC Energy Holdings president and CEO John Eric Francia said: “This acquisition is a major milestone for AC Energy as this scales up our renewable energy platform and establishes our presence in Indonesia.
“This is a significant step towards attaining our goal of reaching 2000MW by 2020.”
The transaction is subject to the satisfaction of certain agreed conditions.