Star Energy to take over Wayang Windu power plant

State oil and gas company Pertamina has failed to take over the West Java-based geothermal power plant Wayang Windu from Magma Nusantara Limited as Deutsche Bank, the representative of consortium of creditors, sold all the shares of Magma to Star Energy, the Koran Tempo newspaper reported in its Monday edition.

Pertamina’s general manager (geothermal) Sukusen Soemarinda confirmed the Pertamina’s failure.

“Star Energy’s offer was far higher than Pertamina’s,” Sukusen said in Jakarta on Sunday.

Both Pertamina and Star Energy didn’t want to disclose details about their bids. Previously, the consortium offered a price tag of US$250 million for the power plant but Pertamina considered the offer as too expensive.

Apparently Pertamina has lost an opportunity to get a lucrative project.

“Pertamina would have get a significant potential profit if it acquires Wayang Windu,” Sukusen said.

According to Star Energy president director Supramu Santosa, the deal was clinched on Novemebr 25, 2004.

The construction of the Wayang Windu power plant, which has a capacity of 2 x 110 MW, began in 1994, with total investment of US$434 million. One of the power generators had been completed.

The geothermal power project, one of the world's environmentally friendly power plants, will receive grant of US$250 million from the Netherlands-based Clean Development Mechanism (CDM) for the use of the environmentally friendly technology. (*)