AC Energy Holdings Inc., a wholly-owned subsidiary of conglomerate Ayala Corp. and other members of an Indonesian consortium, completed the purchase and acquisition of Chevron’s geothermal assets and operations in West Java.
Ayala Corp. said in a disclosure to the Philippine Stock Exchange the acquisition was made through the joint venture company Star Energy Geothermal (Salak-Darajat) B.V.
The consortium consists of AC Energy (with 19.8 percent economic stake), Star Energy Group Holdings Pte. Ltd., Star Energy Geothermal Pte. Ltd. and Electricity Generating Public Company Ltd. or Egco.
The Indonesian assets and operations include Darajat and Salak geothermal fields in West Java, Indonesia, with a combined capacity of 637 megawatts of steam and power.
Egco said in a separate statement it successfully completed the share transfer of 20.07-percent indirect ownership interest in Salak and Darajat geothermal power plants in Indonesia.
“This investment is in line with Egco Group’s strategic plan to expand its business in renewable power generation in Asia Pacific region,” Egco Group president Chanin Chaonirattisai said.
The power plants secured long-term energy sales contracts with PT Pln (Persero), the Indonesian government-owned electricity corporation.
AC Energy president John Eric Francia said the completion of the acquisition of Chevron’s
geothermal assets in the Philippines could take longer.
The consortium that will acquire the Philippine assets consists of AC Energy and Star Energy Group, with the acquisition to be made through joint venture company Acehi-Star Holdings Inc.
Chevron’s assets in the Philippines include a 40 percent equity interest in the Philippine Geothermal Production Company Inc., which operates the Tiwi and Mak-Ban geothermal field in Southern Luzon and supplies steam to power plants with a combined name plate capacity of 700 MW.
AC Energy earlier said the closing of the transaction was subject to the satisfaction of certain agreed conditions, including the approval of the Philippine Competition Commission for the Philippine assets.
Francia also said AC Energy was still waiting for word from Chevron whether the SM Group would exercise its right of first refusal over Chevron’s stake in PGPC, where it owns the remaining 60-percent stake.
AC Energy is also looking at another investment in the Southeast Asian region over the next 12 to 18 months.
“In terms of being systematic, putting our limited resources to work outside the Philippines, it’s really Indonesia first and number two is Vietnam. The rest, it will be opportunistic,” Francia said.
He said any future overseas investment should have “a good local partner with values that are aligned, local capabilities [and] a good pipeline of projects.
“We’re flexible in terms of technology. It could be renewable energy, gas, coal [or] it could be combination,” he said.