Energy Development Corp. has been shortlisted to participate in the bidding for Chevron’s geothermal assets in the Philippines and Indonesia.
“We still have to get a guidance from Chevron but… the bidding was finished last October 31,” EDC chief finance officer Nestor Vasay told reporters over the weekend.
Chevron of the US has a 40 percent interest in Philippine Geothermal Production Co. Inc., which develops and produces steam energy for the 692-megawatt Tiwi and Mak-Ban geothermal power plants.
It also has an interest in the Kalinga geothermal prospect area in northern Luzon that could fuel a 100-MW power plant.
Vasay confirmed the SM Group of retail tycoon Henry Sy had a right of first refusal over the domestic assets of Chevron. The SM Group owns 60 percent of PGPC.
Vasay said EDC was shortlisted as one of the five bidders that include two local companies with foreign partners.
EDC submitted a bid with Japanese partners Mitsui and Kyushu. Other local firms that submitted documents were Aboitiz Power Corp. and Ayala Corp.
“There was seven who submitted the bid but now they shortlisted to five,” Vasay said. Other bidders included PT Medco and an Indonesia firm, he said.
“They (Chevron) will evaluate the bids and then it’s expected they’ll go back to the shortlisted (firms) and then discuss some more, then probably decide,” Vasay said.
“I think all the bidders actually submitted for both. Although that would not prevent Chevron from choosing the higher bid for the Philippines assets and then also choosing the higher bid for the Indonesian assets. They can do that,” he said.
Vasay said EDC had the advantage over the other companies because of its presence in Indonesia.
“We already have an office in Indonesia and its our aspiration to go international and EDC is a very good platform for us to do that,” he said.
EDC is developing geothermal overseas business projects in Chile and Peru, which have an estimated geothermal potential to fuel 800-MW power plants. It is also interested in potential geothermal projects in Mexico.
“In Chile and Peru it’s on hold lang because of the challenging economic conditions. I guess we will always pursue this when the right opportunity comes,” Vasay said.
EDC has completed the geotechnical survey of the Graho Nyabu prospect in Indonesia, where there is an assessed potential of more than 200 MW.
EDC, an affiliate of Lopez-led First Gen Corp. remains the country’s leading producer of geothermal energy with a total installed capacity of 1,169 MW in Leyte, Negros Islands, Bicol and North Cotabato.