Pertamina still negotiating to acquire Wayang Windu geothermal project

State oil and gas company PT. Pertamina said it had yet completed acquisition of Wayang Windu geothermal power plant project in West Java due to prolonged negotiation with the project?s creditor.

?Deutsche Bank is asking for US$250 million, while Pertamina thinks the fair price for the project is $200 million,? said Pertamina?s Geothermal General manager Sukusen Soemarinda told reporters.

Soemarinda said aside from Pertamina, Indonesian oil firm Medco Energi and one Malaysian E&P firm had also expressed interest to acquire the project. He further said Pertamina is also considering opportunity to form joint venture to acquire and operate the project.

Earlier, Pertamina upstream director Bambang Nugroho admitted that based on the due diligence reports by Pertamina?s consultants, fair value for the projects was between $240-260 million.

Developer Magma Nusantara currently owns the Wayang Windu plant, which is located in West Java?s Pengalengan district. Magma is a joint venture of U.S. oil and gas firm Unocal Corporation and a consortium of two banks namely Deutsche Bank and Credit Suisse First Boston.

Construction of the power project, planned to have capacity to generate 2x110 megawatts of electricity, started in 1997. It was halted in 1998 after severe economic crisis hit the country. (godang)