Pertamina to review its plan of buying Wayang Windu power project

State oil and gas firm Pertamina will review its plan to take over Wayang Windu geothermal power project in West Java, company president director Ariffi Nawawi said Friday.

The company’s move goes in line with its determination to focus on its core businesses, Ariffi told reporters.

Pertamina had planned to buy the Wayang Windu project at US$250 million, which would be derived from the bonds the company planned to issue this year. The bonds were planned to be worth $500 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 however after severe economic crisis hit the country.

“I will talk to Pertamina’s commissioners about its geothermal energy business. Any projects Pertamina plans to develop should match its vision and mission,” he said.

Whether or not Pertamina will go ahead with its plan to issue bonds will depend on their discussions with its commissioners, Ariffi said. (godang)