EDC bids for Chevron's geothermal assets in Philippines, Indonesia

EDC bids for Chevron's geothermal assets in Philippines, Indonesia

THE Lopez-led Energy Development Corp. (EDC) has submitted a bid for the
geothermal assets of energy giant Chevron Corp. in the Philippines and
Indonesia.

EDC Chief Financial Officer Nestor Vasay said the company has partnered with
Japan's Mitsui and Kyushu. EDC's group, he said, is among those on the
shortlist.

"We submitted our bid on October 31. We partnered with Mitsui and Co. and
Kyushu Electric Power. We still have to get guidance from Chevron. We're
among those shortlisted," said Vasay, adding there were a total of seven
groups that submitted bids. The list was later trimmed to five.

Vasay identified three more groups. "Aboitiz and Marubeni were there. Ayala,
but I don't know its partner. And then there's this company called Medco of
Indonesia."

He did not identify the fifth group that made it to the shortlist.

The EDC official said the bids would be evaluated. This will be followed by
a discussion with the shortlisted bidders. "Then we'll probably decide
after." Chevron's geothermal assets are valued at about $3 billion. Vasay
said there was an option to bid separately for the assets, but said he was
under the impression that "all bidders actually submitted for both."

"Although that would not prevent Chevron from choosing the higher bid for
Philippine assets and then also choosing the higher bid for the Indonesian
assets. They can do that pero depende sa kanila 'yan," Vasay said.

Chevron has a 40-percent interest in Philippine Geothermal Production Co.
Inc. (PGPC), which develops and produces steam energy for third-party-owned
and -operated Tiwi and Mak-Ban geothermal power plants in Southern Luzon,
with a combined generating capacity of 692 megawatts. The remaining
60-percent stake in PGPC is held by the Sy family of the SM group.

When ask what made EDC decide to join the auction, Vasay said EDC is keen on
pursuing geothermal investments in other countries.

EDC is the largest producer of geothermal energy in the Philippines and the
second largest in the world.

"We have an office in Indonesia and it's our aspiration to go international
and EDC is a very good platform for us to do that. In Chile and Peru
naka-hold lang because of the challenging economic conditions. I guess we
will always pursue this when the right opportunity comes," Vasay said.

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Link to Original Article:
http://www.businessmirror.com.ph/edc-bids-for-chevrons-geothermal-assets-in-
philippines-indonesia/

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com