Andalas Energy and Power Plc Signs MOU with PT Pertamina and Siemens

 
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: [phone] 
                                                           2316 
 
Sarah Wharry    Cantor Fitzgerald Europe                   Tel: [phone] 
                (Nominated Adviser and Joint Broker)       7000 
 
Jon Belliss     Beaufort Securities Limited                Tel: [phone] 
                (Joint Broker)                             8415 
 
Frank Buhagiar  St Brides Partners Limited                 Tel: [phone] 
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 
 

(END) Dow Jones Newswires

October 18, 2017 09:24 ET (13:24 GMT)