Philippines: APC Group in talks with operator for geothermal project

Alexander Richter 5 Feb 2010

Philippine's APC group is in talks with a foreign geothermal operator for a possible joint venture on a 200 MW project in Kalinga and Apayao provinces.

In news from the Philippines, it is said that APC Group is “undergoing a “quasi-reorganization” by reducing the par value of its shares to halve a deficit in retained earnings. “The new par value of the company’s shares and the exact amount of the resulting reduction in deficit will be decided after further study and consideration,” the APC Group said in a disclosure last month.

As of September, the deficit stood at P7.74 billion.

“We are currently in talks with a foreign geothermal operator for a possible joint venture. We just want to rid APC of deficits so we can move forward,” APC Group Chairman Willie N. Ocier said in an interview.

Mr. Ocier said the APC Group already has a geothermal service contract with the Department of Energy in the Kalinga and Apayao provinces.

The geothermal plant, he said, will have an estimated power generation capacity of 200 megawatts. Mr. Ocier said APC is still working out other details with the foreign partner.

The Philippine Stock Exchange imposed a one-hour trading suspension on APC Group shares last Jan. 27 in connection with the quasi-reorganization.

The APC Group was registered with the Securities and Exchange Commission for the primary purpose of engaging in oil and gas exploration and development. But it later became a holding company in line with diversification plans.”

Source: Business World