Andalas Energy and
Power Plc
(‘Andalas’, or the
‘Company’)
First Wellhead IPP
Consortium Agreement Clarification
Andalas Energy and Power plc (AIM:ADL) notes the media
speculation regarding its announcement of 8
August 2017 (“Announcement”) that it had entered into a
consortium agreement (‘Agreement’) with PT PP Energi (‘PPE’), a
subsidiary of PT PP (Persero) Tbk, the Indonesian state owned
construction and engineering company, to develop the Jambi-1 30+MW
independent gas-fired wellhead power facility in Jambi Province, South
Sumatra, Indonesia.
The Company advises that the Announcement was and remains true
and correct.
The Company further advises that:
-
Jambi-1 is the name used by Andalas for the project.
-
The “key contractual, technical and financial project milestones
to be achieved prior to the consortium making its final investment
decision” referred to in the Announcement include:
-
completion of the front end engineering and design study
-
execution of gas sales and power purchase agreements
-
execution of an engineering, procurement and construction
contract
-
contracts for the purchase of the power packs and other
equipment
-
execution of debt finance agreements
-
execution of operating and maintenance contracts
-
licences relating to the facility and transmission lines.
-
The consortium expects the project to be included in Indonesia’s
electricity supply business plan (‘RUPTL’) prior to execution of
the power purchase agreement.PLN nominates projects to the RUPTL
annually.However, the Minister of Energy and Mineral Resources may
direct PLN to include projects on the RUPTL at any time.
The information contained within this
announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 ('MAR). Upon the publication of this
announcement via a Regulatory Information Service ('RIS'), this
inside information is now considered to be in the public
domain.
For further information, please contact:
David Whitby |
Andalas Energy and Power Plc |
Tel: +62 21 2783 2316 |
Sarah Wharry
|
Cantor Fitzgerald Europe
(Nominated Adviser and Joint Broker) |
Tel: +44 20 7894 7000 |
Jon Belliss |
Beaufort Securities Limited
(Joint Broker) |
Tel: +44 20 7382 8415 |
Frank Buhagiar
Susie Geliher |
St Brides Partners Limited |
Tel: +44 20 7236 1177 |
**ENDS**
Notes for Editors:
Andalas Energy and Power plc
Andalas is a developer of independent power generation capacity
in Indonesia. It has partnered with key Indonesian
State-owned enterprises, PT Pertamina (Persero) and PT PP Energi
(“PPE”). Andalas and PPE are developing their first project,
Jambi-1, a 30+MW power project in Jambi
Provence, South Sumatra. Andalas is seeking to develop
a series of power projects with a total generating capacity of more
than 500MW.
PT Pertamina (Persero) (“Pertamina”) –
Indonesia’s World Class National Oil Company
Today Pertamina is ranked 230 on the Global Fortune 500 of
companies generating over US$41
billion in revenue and with some US$45.5 billion in assets in 2015. It has
interests in over 230,000 square kilometres of acreage, has over 5
billion barrels of oil equivalent (‘boe’) in proven and probable
(2P) reserves, and in 1H 2016 its production reached 640,000 boe
per day, equating to over 50% of Indonesia’s total hydrocarbon
production. Pertamina’s business is fully integrated and
includes a significant power business. Pertamina are the lead
developer of the recently approved Jawa-1 (1,760MW) power plant and
have a further 235 MW of geothermal power plants in operation or
being commissioned throughout Indonesia.
PT PP (Persero) Tbk (“PTPP”) –
Indonesia’s state owned engineering and construction group
PTPP is the parent company of PT PP Energi (“PPE”). PTPP,
is an Indonesian state-owned enterprise that is listed on the
Indonesian Stock Exchange with a market capitalisation of
approximately US$1.4 billion and
generated revenue of US$1.2 billion
in 2016. The PTPP group is one of the largest construction
and investment groups in Indonesia
and is considered a preeminent engineering procurement and
construction (‘EPC’) contractor of Indonesian independent power
producer projects. PTPP group has a strong relationship with
the national power company, PLN, having constructed 14 power
projects for PLN totalling 2,168 MW since 2012.
PT PLN (Persero) – Indonesia’s
National Utility
PLN is a state-owned company responsible for the majority of
Indonesia’s power generation. It has exclusive powers over
the transmission, distribution and supply of electricity to the
public and it is responsible for the procurement of independent
power production. PLN employs circa 51,000 employees across
the archipelago and PLN’s total generating capacity (produced by
many different plants across Indonesia) at 31
December 2015 was reported at around 40,265MW. PLN is
focusing their efforts and investments to fulfilling the
Governments ambitious targets of adding 35,000 MW of generating
capacity by 2019 in order to increase the electrification ratio of
Indonesia to levels comparable
with other ASEAN nations.