MANILA, Philippines - Aboitiz Power Corp. is making its foray in Indonesia after partnering with a local power firm to explore and develop a geothermal power project.
AboitizPower disclosed yesterday its wholly-owned Singapore-based subsidiary AboitizPower International Pte. Ltd. entered into an agreement with PT Medco Power Indonesia.
The company said the deal covers its participation in the “exploration and development of a potential 2x55 megawatt greenfield geothermal plant in East Java province.”
PT Medco Cahaya Geothermal, a subsidiary of PT Medco Power, was awarded the concession to develop the project.
AboitizPower president and COO Antonio Moraza said in a text message, the company will take in a 49 percent stake in PT Medco Cahaya.
The project company is currently in the resource validation and exploration stage,
“For now it’s only slim hole drilling which [will] determine the quality and viability of steam field,” Moraza said.
The Aboitiz Group initially bared plans to expand its power business overseas last year, looking mostly at Southeast Asian countries – Indonesia, Vietnam and Myanmar in particular.
But among these countries, Indonesia was the leading candidate for its maiden power venture overseas at that time because of similarities in the Philippines’ demographics and need for more power in the future.
This is not the first overseas venture for the Aboitiz Group.
Listed holding firm Aboitiz Equity Ventures Inc. made its maiden international venture in June 2014 after food unit Pilmico Foods Corp. acquired a 70-percent stake in Vin Hoan 1 Feed JSC, one of the largest aqua feed producers in Vietnam.