Sumitomo increases stake in Muara Laboh geothermal, Indonesia
Through the acquisition of shares of ENGIE, Sumitomo has increased its equity in the Muara Laboh geothermal project power from 35% to 50%.
Japanese general trading company Sumitomo Corporation (Sumitomo) has acquired the 15% equity stake of ENGIE in the PT Muara Laboh Geothermal Power Project in Indonesia. This has increased the stake of Sumitomo in the project from the previous 35% to 50%.
This transaction also marks the divestment of European integrated energy company ENGIE from the project. The remaining 20% equity shares of ENGIE has been acquired Japanese energy company INPEX Corporation through INPEX Geothermal, Ltd. INPEX had already previously joined the Muara Laboh Geothermal Power Project by acquiring 33.33% shares of PT Supreme Energy Sumatera, as we had reported.
As one of the pioneers of geothermal development in Indonesia, Sumitomo had already been involved in the Muara Laboh project before exploration well drilling. Sumitomo received its first EPC order for a geothermal power station in Indonesia in 1997, and since then have been involved in a total of 11 geothermal power projects.
The transaction is expected to close within 2022 subject to the completions of terms and conditions of the agreement. Through this transaction, Sumitomo will have greater involvement in the project and will increase its contribution to the realization of a low-carbon power industry in Indonesia.
Source: Sumitomo Corporation