Star Energy's geothermal unit issues $150 million bonds

Singapore Stock Exchange announced on Tuesday it would list a ten-year bond worth US$150 million issued by Magma Nusantara Limited to finance the development of another power unit at its Wayang Windu geothermal power plant in West Java, on Wednesday.

The bourse said the sole lead manager and bookrunner of the bonds is Deutsche Bank.

Magma, which is Star Energy?s 100 percent owned affiliate, has an exclusive right to develop up to 440 Megawatt (MW) of the Wayang Windu geothermal resources within the 14,400 hectare contract area for 42 years.

Magma currently operates one power unit in the area with the capacity of 110 MW. The power is supplied to state owned electricity firm PT PLN.

Star Energy earlier said it planned to construct the second unit, whose operation is expected to begin in 2008 with the capacity of 110 MW. The second unit will cost between US$150 and $170 million.

Star Energy has reportedly agreed to lower its selling price to state owned electricity company PLN to 4.9 US cent per kilowatthour from 5 US cent previously.

Star Energy primarily involves in upstream oil and gas sector. The company operates Kakap block in West Natuna of South China Sea. (Robert)