Andalas Energy and Power Plc Signs Agreement with PT PP Energi

 
TIDMADL 
 
Andalas Energy and Power Plc 
 
                         ('Andalas', or the 'Company') 
 
                       Signs Agreement with PT PP Energi 
 
Andalas Energy and Power plc (AIM:ADL) is pleased to announce that it has 
signed an agreement ('Agreement') with PT PP Energi ('PPE'), a division of PT 
PP (Persero) Tbk ('PTPP'), the state owned construction and engineering 
company, to jointly develop gas fired power facilities ("IPPs") in Indonesia. 
The Agreement is a significant milestone for the Company because it builds on 
Andalas' existing business with Pertamina and PTPP and PPE have the capability 
to bring significant complementary experience and resources to joint projects. 
 
The agreement covers IPP projects across Indonesia, including those developed 
from gas supplied by Pertamina and by third party gas owners.  It is expected 
that PPE will be a suitable partner to join it and PT Pertamina (Persero) in 
developing IPPs under Andalas' existing agreement (see announcement 1 September 
2016) using gas from Pertamina's portfolio of discovered gas fields in 
Sumatra. 
 
Highlights: 
 
  * Andalas to propose at least three projects to PPE within three months. 
  * PPE parent company, 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. 
  * 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. 
  * PTPP was awarded Indonesia's Most Admired Company 2017 Construction 
    Category by Warta Ekonomi Magazine in May 2017. 
 
David Whitby, CEO of Andalas Energy & Power, commented: "Our relationship with 
Pertamina is creating a new gas to power business in Indonesia.  The agreement 
is complementary to this business but importantly enables Andalas to pursue 
other gas to power projects that it has identified with non-Pertamina gas 
fields.  PPE is a motivated and strategic partner that we believe brings unique 
skills, relationships and financial resources to a project consortium that we 
expect will further enable Andalas to deliver its target of 250-500MW.  We have 
already performed a great deal of work in anticipation of signing this 
agreement and I look forward to announcing the first project shortly." 
 
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. 
 
                                   **ENDS** 
 
For further information, please contact: 
 
David Whitby    Andalas Energy and Power Plc           Tel: [phone] 
 
 
Sarah Wharry    Cantor Fitzgerald Europe               Tel: [phone] 
Craig Francis   (Nominated Adviser and Joint Broker) 
 
 
Jon Belliss     Beaufort Securities Limited            Tel: [phone] 
                (Joint Broker) 
 
 
Frank Buhagiar  St Brides Partners Limited             Tel: [phone] 
Susie Geliher 
 
 
 
END 
 

(END) Dow Jones Newswires

July 17, 2017 05:02 ET (09:02 GMT)