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Medco announces interest in geothermal assets of Chevron

Chevron sign in California (source: flickr/ swong95765, creative commons)
Alexander Richter 2 Mar 2016

PT Medco Power has announced an interest in the acquisition of the geothermal assets of Chevron, after rumours talk about the company looking at divesting from geothermal in Asia.

With reports on Chevron exploring the sale of its geothermal assets in Asia, we reported on this earlier this week, mostly due to the low oil price which also hits its Asian oil business, there seems to be interest in the acquisition of those assets.

In Indonesia, Chevron has geothermal production area with a capacity of 377 MW in Salak, and 260 MW in Darajat. In Indonesia, Chevron also has two subsidiaries in charge of geothermal business, namely Chevron Geothermal Indonesia Ltd. with the Darajat geothermal project and Chevron Geothermal Salak, Ltd with the Mount Salak project.

Besides Indonesia, Chevron also has 40% stake in Philippine Geothermal Production Co. Medco buying interest news Chevron Geothermal considering the sale of assets in Asia also already heard Medco Power Indonesia.

In a statement in the Indonesian press, Medco Power Indonesia President and Director Fazil Erwin Alfitri said Medco “would be interested in buying the assets of Chevron if it has a chance. Because, “The geothermal assets of Chevron are operational and very interesting”.

For Medco, these assets seem to be particularly interesting as they are already operating. According to Fazil, the prospects for the geothermal business are still good, as production cost are much cheaper than fossil fuels, and geothermal being an environmentally friendly energy source.

In the future, renewable energy will be the future business. He believes that the profit level of the geothermal business is very promising in the future.

“We believe in the potential of geothermal energy as a renewable energy” he said. It also makes Medco Power believe that investment in renewable energy should be sustainable.

With the untapped potential for geothermal development there are big opportunities it seems.

Source: Kontan