Andalas Energy and Power Plc Signs MOU with PT Pertamina and Siemens
19 October 2017 - 12:24AM
UK Regulatory
TIDMADL
Andalas Energy and Power Plc
('Andalas', or the 'Company')
Signs MOU for Development of an Independent Power Producer at the Puspa Field
with PT Pertamina Power Indonesia and Siemens AG
Andalas Energy and Power plc (AIM:ADL) is pleased to announce that it has
signed a memorandum of understanding with PT Pertamina Power Indonesia ("PPI"),
a wholly-owned subsidiary of PT Pertamina (Persero) ("Pertamina"), and Siemens
AG ("Siemens") regarding the development of an independent power producer at
the Puspa field in Sumatra ("Puspa MOU").
Highlights:
* Andalas, PPI and Siemens agree to jointly pursue the development of an
independent power producer at the Puspa field in Sumatra. The Puspa field
is operated by PT Pertamina EP ("PEP").
* Establishes the basis to:
+ engage project partners;
+ negotiate and agree further project agreements with all stakeholders;
+ secure gas from the Puspa field;
+ generate conceptual development plans including an electricity demand
analysis, a load flow study, a site identification study, identify and
select gas fired power generation technology, and identify and select
an engineering, procurement and construction contractor.
* The parties have agreed to bear their own costs and to share all agreed
third party costs, equally during this phase of the project. The agreement
includes binding provisions relating to the joint pursuit of the project,
conditions precedent, exclusivity, costs, term and confidentiality and
non-binding provisions relating to the objectives and execution of further
agreements and joint committees. It is for a term of 24 months and subject
to all necessary approvals and finance.
* The Company will make a final investment decision ("FID") after the project
has been included in the RUPTL and the Company has completed the work
program outlined above, obtained various licences relating to the facility
and transmission lines and negotiated the final agreements with other
stakeholders including the consortium members, PEP, PLN and lending
institutions.
* The third party costs to Andalas during the development phase are expected
to be modest. The material costs of the project relate to the capital
costs of the power plant, which will only be incurred when the project
achieves FID.
David Whitby, CEO of Andalas Energy & Power, commented, "The execution of the
Puspa MOU establishes our first joint project with PPI and Siemens.
"Pertamina has recently completed an appraisal program on the Puspa field. The
proposed IPP would enable Pertamina to commercialise the field. Andalas'
preliminary assessment is that it will support a 20 to 50MW wellhead IPP. We
will continue to refine this model in discussions with all stakeholders
including PPI, Siemens, PEP and PLN.
"We are pleased to welcome Siemens to our consortium. Siemens is a leading
provider of generating systems and networks in Indonesia and we believe their
addition to the project will prove invaluable."
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 Tel: +44 20 7894
(Nominated Adviser and Joint Broker) 7000
Jon Belliss Beaufort Securities Limited Tel: +44 20 7382
(Joint Broker) 8415
Frank Buhagiar St Brides Partners Limited Tel: +44 20 7236
Susie Geliher 1177
**ENDS**
Notes for Editors:
PT Pertamina (Persero) ("Pertamina") - Indonesia's 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 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 Pertamina Power Indonesia ("PPI") - Pertamina's power developer
PPI was recently established by Pertamina to run, control and manage all of its
power business activities in Indonesia and globally. From 2017, all gas-based
and new & renewable energy power projects undertaken by the Pertamina Group
will be officially led by PPI. PPI's interests include a stake in PT Jawa Satu
Power which is developing the 1760 MW Jawa-1 IPP. PPI also has stakes in a
number of solar power projects.
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.
Siemens AG
Siemens AG is a German conglomerate company headquartered in Berlin and Munich
and one of the largest global industrial manufacturing companies. Siemens is
50% owner of PT Jawa Power 1,220MW that is the only coal fired power plant to
receive the Proper Gold award from the government of Indonesia.
The RUPTL or Rencana Usaha Penyediaan Tenaga Listrik is Indonesia's electricity
business plan. It contains demand forecasts, future expansion plans,
electricity production forecasts, fuel requirements and indicates which
projects are planned to be developed by PLN and independent power project
investors.
END
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