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Bakrie Power and partner sell Sokoria geothermal project in Indonesia

Kelimutu, Flores, Indonesia (source: flickr/ Rosino, creative commons)
Alexander Richter 3 Aug 2016

Bakrie Power and Xped (formerly Raya Group) sell the 30 MW Sokoria geothermal power project in Indonesia to Singapore-based KS Orka Renewables.

In an announcement to the Australian Stock Exchange, Xped Limited (formerly Raya Group and before that Panax Geothermal), reports having signed a deal with its partner PT Bakrie Power Corp. to sell a 95% interest in the 30 MW Sokoria geothermal project in Indonesia.

The buyer is Singapore-based KS Orka Renewables Pte Ltd. Under the terms of the agreement, Australia-based Xped will sell its entire 45% stake in the project company, PT Sokoria Geothermal Indonesia, and Bakrie will reduce its interest to 3% from 53%. Xped said it will initially receive a nominal payment of USD 1.00 and be entitled to get up to an additional USD 947,368 (EUR 846,400), subject to certain conditions being met. The deal needs approval to the Notification of Intent to Develop the project by PT PLN under the Power Purchase Agreement and finalizing tariff concessions with PLN for the project.

The buyer has agreed to lend up to USD 1.5 million for working capital to expedite the project and meet regulatory deadlines.

The completion of the sale agreement is subject to approval of PLN and BKPM (Investment Coordinating Board of Indonesia), the extension of the exploration period under the IPB held by SGI for one year, and other elements.

Xped, previously known as Raya Group Ltd, is selling its interest in the project to focus on its new technology business, it said.

Athan Lekkas, CEO of Xped, commented: “Xped is pleased it has reached agreement with Orka to acquire SGI and wishes Orka and its team all the success in developing the geothermal project. Through the divestment of our legacy assets Xped can continue focussing on the technology side of its business.”

Source: Australia Stock Exchange announcement