PNOC, Pertamina to build three geothermal plants

Philippine National Oil Co.'s energy unit (PNOC) and Indonesia's state-owned oil company Pertamina will form a US$600 million venture to build three geothermal plants in Indonesia, Bloomberg report Monday.

The three plants will have total capacity of 300 megawatts and could start operating in the next four years, Sergio Apostol, chairman of PNOC-Energy Development Corp., said in a statement, confirming a report by the Philippine Daily Inquirer.

The venture plans to sell electricity to Indonesia's state-owned power company PLN. The venture will help the Philippine company in its bid to provide services for geothermal energy development abroad such as drilling, resource assessment and power generation.

The Philippine energy company is expected to sign a venture agreement with Pertamina by year's end, Apostol said.

The Philippine government plans to sell its 10 percent stake in an offshore gas field, held through the energy company, to help plug this year's 130 billion pesos ($2.5 billion) budget deficit. (*)