Engie to dump upstream asset, maintain geothermal ops

By Godang Sitompul

Europe energy giant Engie, formerly known as GDF Suez, plans to sell its stake in Muara Bakau PSC, offshore East Kalimantan, where the US$ 4 billion Jangkrik giant gas project is being developed.

A person familiar with the matter told Petromindo.Com on Thursday that the company has submitted request to Ministry of Energy and Mineral Resources to open the PSC?s data room to enable interested parties to conduct technical due diligence.

Engie has 33.4 percent stake in Muara Bakau, with operator Italian firm Eni SpA and local firm Saka Energi hold 55 percent and 11.1 percent, respectively.

Production is expected to start in 2017 and the fields are expected to produce 450 million metric cubic feet of gas per day for the first six years and continue producing at a lower capacity for approximately eight more years.

Up to 47 percent of the gas produced from the Indonesian offshore field is intended for domestic supply, whereas the remaining gas will be exported to neighbouring Asian countries.

Engie has also recently signed deal to sell its 40.5 percent stake at PT Paiton Energy Indonesia, which operates a 2GW coal-fired power plant in East Java, to Nebras Power QSC, a Qatar-based energy company.

The company, however, will maintain its geothermal business in Indonesia. Supramu Santosa, President Commisioner of Supreme Energy which partners with Engie to develop three geothermal power projects in Sumatra told Petromindo.Com on Thursday that Engie will maintain its Indonesian geothermal business.

Since 2011, Engie and its partners Supreme Energy, Sumitomo Corporation and Marubeni Corporation, have been exploring three geothermal resource areas in the Sumatra region: Muara Laboh, Rajabasa and Rantau Dedap. In 2012, the group and its partners signed 30-year Power Purchase Agreements with PLN, the state-owned electric utility, for the three projects.

Editing by Reiner Simanjuntak