PLN, Unocal to sign HOA on Sarulla power project sale
Monday, June 16 2003 - 05:34 AM WIB
State electricity firm PLN and oil and gas producer Unocal Indonesia Company will in a couple of days sign a Head of Agreement to buy Unocal's Sarulla geothermal project in North Sumatra, PLN president director Eddie Widiono said Monday.
"We may sign the agreement in one or two days," he told reporters.
PLN hoped that Unocal would be willing to sell the Sarulla project to it at less than US$80 million, Eddie said.
He said that an Italian consultant had conducted due diligence on the power project, which is expected to supply electricity to consumers from the northern part of Sumatra Island.
The government suspended the power project in 1998 due to the Asian financial crisis. It was originally planned to have capacity of 110 megawatts.
PLN and Unocal had been in talks for quite sometime about the price of electricity from the power project. After they failed to reach an agreement, PLN planned to buy the project. (godang)