Nebras to buy ENGIE stake of up to 35.5% in Paiton Energy

Qatari joint stock company Nebras Power has signed a binding agreement to acquire ENGIE?s stake of up to 35.5 percent in PT Paiton Energy, a report said Tuesday.

The acquisition of ENGIE?s stake in Paiton provides Nebras with access to the highly attractive Indonesian power market, gulf-times.com said.

Paiton is well positioned to benefit from favourable fundamentals of the Indonesian power market. It is Indonesia?s largest IPP (independent power producer) with over 2,000 MW of operating base accounting for a sizable portion of capacity in Indonesia.

Together with Paiton, Nebras has also acquired a stake in the O&M company that operates Paiton. The closing of the transaction is expected within the second half of 2016 subject to customary approvals and regulatory consents, the report said.

On the transaction, Nebras chairman Fahad Hamad al-Mohannadi said, ?The acquisition of ENGIE?s Paiton stake is a value enhancing and forward-looking initiative for Nebras. We have been clear about our intention to focus on growth initiatives and building our international presence making targeted acquisitions in South East Asia, Europe, and Mena region, as well as forming major energy services partnerships. This transaction will complement our strategy of pursuing growth platforms to provide scale and revenue diversity.?

Nebras CEO Khalid Mohammed Jolo said, ?We have carefully reviewed the Paiton operations and concluded that Paiton offers a compelling investment opportunity for us to get access to the highly attractive Indonesian power market. Nebras looks forward to the opportunities this transaction provides and working closely with the consortium partners which includes, among others, Mitsui and TEPCO.?(*)