News

Origin Energy exits all geothermal activities and assets

Drill pipe ready at Jolokia 1, Geodynamics/ Australia (source: Geodynamics)
Alexander Richter 30 Sep 2015

In a not unexpected move, Australian gas and electricity company Origin Energy has announced an exit from its geothermal activities and assets, among others in Indonesia, Chile and Vietnam.

While no real surprise after its sale of all its shares in New Zealand-based Contact Energy, Origin Energy is now said to “exit all its international geothermal assets, … as part of significant restructure headlined by a massive $2.5 billion fund raising.

The gas and electricity company has been dealing with a significant drop in share price due to the oil market and is now taking sharp measures to reduce capital expenditure and a sale of non core assets. These – so local news – include the geothermal and wind assets, as well as some international exploration projects.

Earlier this year, Origin sold its stake in Contact Energy and withdrew from the EGS investment in Geodynamics in 2013.

“The international asset sales – which include exploration – could lead to write downs of $100-$150 million. In Chile, Origin was pursuing geothermal with Energia Andina, its joint venture with Antofagasta Minerals in Chile. Its solar developments with that company will not be affected.

In Indonesia, Origin had been pursuing geothermal opportunities through its interest in Geothermal Services Indonesia (OTP), which recently signed a PPA for the Sorik Marapi project in North Sumatra.” … it is unclear how this will effect that particular project.

Origin says it expects to make $53 million write-off for discontinued exploration in Vietnam.”

 

Source: RenewEconomy