Medco moves faster than Pertamina to acquire Chevron?s geothermal assets
Monday, July 4 2016 - 01:27 AM WIB
IDX-listed energy firm PT Medco Energi Internasional (Tbk) said on Friday it has signed a confidential agreement with American firm PT Chevron Geothermal Indonesia which allows the form to review information available in the data room of Chevron?s Salak and Darajat geothermal fields in West Java province.
By signing the confidential agreement, the firm has moved one step ahead of state owned oil and gas firm PT Pertamina (Persero) which is also interested to acquire the fields. Pertamina?s President Director Dwi Soetjipto said on Friday the firm is still in the phase of submitting request to see the data room.
?At present, we are submitting request (to see) the data room. We shall evaluate the data room,? Dwi said.
Meanwhile, Medco?s President Director Hilmi Panigoro said the firm is interested to acquire the fields because oil and gas, which is the firm?s core business, is now in the doldrums.
?If the oil price remains as it is now, we have to make acquisition in order to increase cashflow. Honestly speaking, we are interested in the Chevron?s geothermal assets,? Hilmi said.
He acknowledged aside from Medco, there are several other companies which Chevron has invited to see the data room. While Medco is interested to acquire the assets, the decision whether to buy the assets depends on the valuation of the assets, he said.
Medco posted US$186.17 million in net loss last year, a reversal from a net profit of $8.84 million in the previous year, due to the collapse of oil prices.
Hilmi said Medco will issue bonds to strengthen its financial position. In the first phase, the firm recently issued Rp 1.5 trillion bond with 30 percent of the proceeds allocated for acquisition.
Chevron has announced plans to sell its geothermal assets in Indonesia and the Philippines. In Indonesia, according to the firm?s website, Chevron operates the Darajat and Salak working areas in West Java province, which have a combined operating capacity of 647 MW. Chevron operates the geothermal fields through two subsidiaries, namely Chevron Geothermal Indonesia, Ltd., which manages the Darajat project and Chevron Geothermal Salak, Ltd., operates the Salak project.
Editing by Johannes Simbolon