Manila Bulletin
By Myrna M. Velasco
Published: May 21, 2013
Lopez-run Energy Development Corporation (EDC) has finally firmed up a joint venture agreement with Canadian renewable energy firm Alterra Power Corporation for acquisition on Latin-American geothermal exploration projects.
The JVA, according to EDC’s disclosure to the Philippine Stock Exchange (PSE), was signed Monday (May 20). It will cover the Mariposa prospect in Chile; as well as three others in Tutupaca, Loriscota and Crucero in Peru.
The company has emphasized that the pact “sets the framework and main commercial principles for EDC’s potential acquisition of a 70-percent interest in each of the four projects.”
The Lopez firm laid down though that “the completion of the transaction remains subject to the preparation of fully termed documentation and necessary regulatory approvals.”
Company officials have previously indicated that a negligible P100 million will just be allotted this year for operating expenses in their offshore investments.
However, that is seen growing to $40 million next year with the planned start of drillings at the Chilean Mariposa project.
The company noted that given its access to multiple geothermal sites in Latin America now, it already gained “critical mass of opportunities to deploy resources more efficiently.”
The aim, EDC added, will be “to build strong local teams who understand how these markets work.” So far, it already set up its business office in Chile for the ventures in the continent; while preparations are under way for the targeted Indonesian venture.
The company was earlier awarded a preliminary survey rights over a geothermal prospect in Sumatra site in Indonesia.
“We are now going through the permitting process and expect to begin geotechnical studies in the second quarter of 2013,” EDC president and chief operating officer Richard B. Tantoco has noted. source
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