Pertamina seeks to take over Wayang Windu geothermal project

State oil and gas company Pertamina was seeking to take over the geothermal power project in Wayang Windu, West Java as part of the efforts to increase its goethermal assets, a Pertamina official said on Thursday.

Pertamina's production sharing contract (PSC) director Iin Arifin Takhyan said Pertamina was negotiating with the bank, which had acquired the project from the initial investors, on the price for the power project.

Iin however did not name the bank.

"We are still negotiating the price. Thus far, we consider the price too expensive," Iin said.

According to Iin, last year the bank in question set the price for the 110-Megawatt (MW) power plant at US$400 million last year but it later cut the price to as low as $200 million.

But, Pertamina still considered the price too high, Iin said.

State electricity company PLN's data say the Wayang Windu power plant is initially owned by Asia Power of New Zealand, which is a joint venture of Asia Power and Briely Investment; PT Bumi Mandala Nusantara, which is controlled by former President Soeharto's son Hutomo Mandala Putra; and Mighty River Power.

Iin explained that the power plant's operation was later handled by American power firm California Energy and taken over by the bank.

But, he did not provide details on the process which lead to the takeover of the power plant by California Energy and the bank. (Ari)