Andalas Energy and Power plc (AIM:ADL) notes the media speculation regarding its announcement of 8 August 2017 that it had entered into a consortium 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: +62 21 2783 2316|
|Sarah Wharry||Cantor Fitzgerald Europe
(Nominated Adviser and Joint Broker)
|Tel: +44 20 7894 7000|
|Jon Belliss||Beaufort Securities Limited
|Tel: +44 20 7382 8415|
|St Brides Partners Limited||Tel: +44 20 7236 1177|
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.