Large interest by international players in Chevron’s geothermal assets in Asia
Chevron geothermal power plant Tiwi, Albay, Philippines (source: flickr/sherwin_magayanes)
Alexander Richter
6 Apr 2016
There is a large interest in a bid for Chevron's geothermal assets in Asia and it is likely large joint indicative bids by international players will be received this month with Japanese players likely in a key role.
A news report from Reuters, states that there is an incredible large interest by international companies in the possible sale of Chevron’s geothermal assets, valued at around $3 billion.
Among the companies having an interest and preparing a bid are French utility Engie, Japanese Marubeni, energy firms from Southeast Asia (we reported of interest by Medco, other firms in the region named are Aboitiz from the Philippines and Banpu Power from Thailand), but there are also Chinese players said to be interested (one of those companies could be Sinopec, which has been eyeing geothermal investments internationally for some time)
The geothermal assets of Chevron are rather interesting for these companies as they provide the opportunity “to gain control of large blocks of geothermal assets located in Indonesia and Philippines”, so Reuters
According to sources to the matter, there are likely some consortiums formed around a bid for those assets. The low cost funding availability through Japanese banks, it is likely that Japanese companies will play a key role.
Chevron has hired Citigroup in an advising role for the sale of its geothermal assets with the auction actually having been kicked of in March. Indicative bids for the assets are due in April.
Source: Reuters
