Andalas Energy and Power Plc First Wellhead IPP Consortium Agreement Clarification

 
TIDMADL 
 
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: [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: 
 
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. 
 
 
 
END 
 

(END) Dow Jones Newswires

August 14, 2017 08:32 ET (12:32 GMT)