Aboitiz Power Corp. will team up with Japan’s Marubeni Corp. in bidding for roughly $3 billion worth of geothermal assets of Chevron in Indonesia and the Philippines, a top company official said Thursday night.
Aboitiz Power chief operating officer Miguel Aboitiz told reporters the company was interested in Chevron’s assets because they consisted of renewable projects. The possible acquisition of Chevron’s assets in Indonesia would also expand the Aboitiz Power group’s footprint outside the Philippines.
Aboitiz Power has been meeting with its partner plan their bid next week.
Aboitiz Power since last year has been looking at geothermal opportunities in Indonesia.
Chevron is selling geothermal assets in Southeast Asia, cutting jobs globally and slashing capital spending to save cash in a bid to preserve its dividend amid weak oil prices.
Chevron has a 40-percent interest in Philippine Geothermal Production Co. Inc., which develops and produces steam energy for the Tiwi and Mak-Ban geothermal power plants.
The family of retail tycoon Henry Sy owns the remaining 60 percent and has a right of first refusal on the sale of the Chevron assets.
Chevron subsidiaries operate geothermal projects in Salak and Darajat fields in west Java, Indonesia with a capacity to generate nearly 650 megawatts of electricity.
Other companies that are reportedly interested in bidding for Chevron’s assets include Engie (formerly GDF Suez), France, Mitsubishi Corp. (Japan) Energy Development Corp of the Lopez group, Banpu Power (Thailand), China Investment Corp., Malakoff Corp. (Malaysia), Ormat Technologies Inc. (US) and PT Medco Power (Indonesia).
Aboitiz Power is on track to achieve its goal of increasing the company’s generating capacity to 4,000 megawatt by 2020.
With the recent operation of two power facilities early this year—the 300-MW Davao base load plant and the 59-MW solar station in Negros Occidental, the company now has a generating capacity of 3,350 MW.
Aboitiz Power also owns the 692-megawatt Tiwi and Mak-Ban geothermal power plants.
Meanwhile, Aboitiz group’s food unit Pilmico plans to further expand its presence outside the country.
The group also bidding for various infrastructure project contracts that the Duterte administration may bid out.