PLN mulls backing down from bid for Chevron geothermal assets

State-owned electricity firm PT PLN is considering to back down from ongoing bid for Chevon?s Darajat and Salak geothermal working areas in West Java as the latter has yet to provide the requested latest audited financial report on the assets, Kontan reported on Wednesday.

?If this (audited financial report) is not fulfilled, we?ll automatically withdraw (from the tender), said PLN Spokesman I Made Suprateka.

He said that the company?s decision to withdraw from the bid is not because of an earlier demand from Minister of Energy and Mineral Resources Ignasius Jonan.

Ignasius has suggested for PLN not to bid for Chevron?s geothermal assets, urging the utility to instead focus on helping the government to realize the five-year program of developing a combined 35,000 MW power plants, and the required transmission facility.

Chevron is divesting 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.

As has been previously reported by this portal, six companies including PLN have submitted binding bids for the geothermal assets. (*)