Aboitiz Power very keen on acquiring Chevron’s geothermal assets
Aboitiz Equity Ventures, parent to Aboitiz Power is keen on an acquisition of Chevron's geothermal assets particularly in the Philippines.
Philippines-based Aboitiz Equity Ventures, parent company to Aboitiz Power Corp. is very keen on acquiring the geothermal assets of Chevron in the Philippines and Indonesia.
This is reported locally from the Philippines. The company sees the assets of Chevron as a perfect match to its growing renewable energy portfolio. In the Philippines, Aboitiz Power purchases steam from Chevron for its Mak-Ban geothermal power plant near Manila.
With the acquisition, Aboitiz Power thinks it can build on synergies in a more integrated business, as explained by the CFO of Aboitiz Equity Ventures, Manuel R. Lozano in an interview with Manila Times.
“Today it’s a little bit more challenging, because we’re two separate companies with separate goals operating the two ends of the geothermal site. So having one integrated unit will at least be easier to manage,” he said.
Chevron owns a 40% stake in the Philippine Geothermal Production Company, which develops and produces steam for power plants owned and operated by third parties. These plants are Tiwi and Mak-Ban. With a combined generating capacity of 692 MW this would mean the combination of sizeable steam and power production. Chevron further maintains an interest in the Kalinga geothermal prospect in Northern Luzon.
Aboitiz Power through its subsidiary AP Renewables operates the 458 MW Tiwi geothermal power plant. It is part of the geothermal facilities of Tiwi-MakBan which it required in May 2009.
Having reported on Indonesian bidders for Chevron’s assets in Indonesia, Aboitiz Power seems to be interested in assets both in Indonesia and the Philippines.
It is expected that the bidding process for Chevron’s geothermal assets will be closed by the end of the year with a great likelihood of consortiums of companies winning the bid due to the size of the assets.
Aboitiz Power is working on a consortium bid with four potential foreign partners and plans to finance the acquisition through loans and internal cash.
Chevron’s geothermal assets in Indonesia are larger than those in the Philippines, where Chevron does not own a power plant.
Source: Manila Times