Chevron sells assets in Southeast Asia

JAKARTA, December 26, 2016 – US major Chevron has signed agreements with Indonesian and Philippine companies to sell its geothermal assets in the region. The value of the deal was not disclosed but the divestment is reportedly valued around USD 3 billion.

AC Energy, a unit of Philippine conglomerate Ayala, is a major party to the share and purchase agreement signed with Chevron. More specifically, the acquisition of Chevron’s assets in Philippine will be made via the AC Energy-Star Energy Group Holdings consortium. Chevron holds a 40% share of the Philippine Geothermal Production Company, which operates the Tiwi and MakBan geothermal fields in Luzon. The steam generated there is fed to power plants with a combined generation capacity of some 700 MW.

AC Energy owns 19.8% of the Indonesian consortium that will acquire Chevron’s assets in the archipelago, which also includes Star Energy Group, Star Energy Geothermal, and Electricity Generating Public Company. Chevron operates the Dajarat and Salak geothermal fields in West Java. The assets supply steam to two power plants that generate 270 MW and 377 MW, respectively.

“This acquisition is a major milestone for AC Energy as this scales up our renewable energy platform and establishes our presence in Indonesia. This is a significant step towards attaining our goal of reaching 2000 MW by 2020,” John Eric Francia, AC Energy chief executive, said in a statement.

In related news, Indonesia is expected to go beyond its oil and gas production target for the first time since 2008. Output averaged 822,000 bopd in November, exceeding the 820,000 bopd targeted in the revised 2016 state budget, the country’s upstream regulator, SKK Migas, said on Friday. Average 2016 production is expected to come out at more than 800,000 bopd. Indonesia is targeting to pump 815,000 bopd next year, but increased output from ExxonMobil’s Cepu block might add another 10,000 bopd, SKK Migas also said.

Read our latest insights on: