By: Doris Dumlao-Abadilla 01:54 AM September 5th,
2016
AT LEAST three big local
conglomerates are looking at buying the domestic geothermal assets of American
energy giant Chevron, which is seen unloading its Philippine and Indonesian
geothermal units to focus on its core oil and gas businesses.
Ayala Corp., Lopez-led Energy
Development Corp. and Aboitiz Equity Ventures are studying the geothermal
assets of Chevron.
Chevron has a 40-percent interest in
Philippine Geothermal Production Co. Inc. (PGPC), which develops and produces
steam energy for the third-party-owned and -operated Tiwi and Mak-Ban
geothermal power plants in southern Luzon with a combined generating capacity
of 692 megawatts. The remaining 60 percent stake in PGPC is held by the Sy
family of the SM group.
Chevron also has an interest in the
Kalinga geothermal prospect area in northern Luzon.
AP Renewables, a unit of Aboitiz
Power, is the operator of the southern Luzon power plants that use steam
produced by PGPC using heat from the earth, which naturally makes the Aboitiz
group one of the interested parties. The Aboitiz group bought the power plants
from the state-owned Power Sector Assets and Liabilities Management Corp.
(PSALM) in 2009.
Many other foreign and local parties
are likewise interested in Chevron’s assets.
“We’re interested in geothermal and
the Chevron opportunity is an attractive one,” John Eric Francia, president and
CEO of AC Energy Holdings Inc., said in a text message.
“We would study any potential opportunity
to expand our geothermal portfolio,” said Ramon Carandang, vice president at
First Philippine Holdings, parent company of Energy Development Corp., which is
the biggest producer of geothermal energy in the Philippines and the second
largest in the world. “Whether we actually bid would depend on a number of
factors,” he added.
Asked about the possible sale of
Chevron assets in the country, AEV president Erramon Aboitiz said: “We
obviously will be looking at the different opportunities that come along.”
Chevron is reportedly selling its
geothermal assets in Indonesia and the Philippines with estimated value of $2.5
billion.
The sovereign fund China Investment
Corp., Malakoff Corp., Marubeni Corp. of Japan, Ormat Technologies Inc. were
among those reported to be interested in Chevron Corp.’s Asian geothermal
assets
Chevron, the biggest US oil
producer, is rationalizing operations amid a global oil price slump.
Based on earlier reports, Citigroup
Inc. is advising Chevron on the geothermal asset sale.
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