Aboitiz eyes Chevron’s assets

by Alena Mae S. Flores – May 16, 2016 at 11:56

from Manila Standard Today

Aboitiz Power Corp. is open to acquiring Chevron Corp.’s geothermal assets in the Philippines to expand its own portfolio, executives said Monday.

“We are always on the lookout for opportunities in the Philippines and Asia. We understand Chevron is thinking of selling these assets. When the time comes, when the process has started, we will be looking. We are waiting for the formal advice,” Aboitiz Power chief executive Erramon Aboitiz told reporters after the stockholders’ meeting.

Aboitiz Power owns the 692-megawatt Tiwi and Mak-Ban geothermal power plants.  Chevron, meanwhile, 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.

Chevron also has an interest in the Kalinga geothermal prospect area in northern Luzon that could support 100 MW of capacity. Chevron plans to sell its Asean geothermal assets.

Aboitiz Power is also looking at geothermal opportunities in Indonesia where exploratory drilling is ongoing.

“We continue to be on the lookout for growth opportunities that fit our investment and risk appetite parameters parameters  and where we can add value based on our proven competencies and experiences,” Aboitiz said.

“We are eyeing geothermal and hydro power opportunities in Indonesia, as part of Aboitiz Power’s growth strategy in the Asean region,” Aboitiz said.

Aboitiz Power is spending P51.5 billion this year, up from P34.4 billion in 2015 as part of efforts to increase generation capacity to 4,000 MW by 2020. The company has a net sellable capacity of 3,350 MW to date.

“[The amount] is for Pagbilao, Cebu and Manolo Fortich,” Aboitiz Power chief operating officer Antonio Moraza said.

The company is presently constructing the 68-MW Manolo Fortich hydro plant in Bukidnon which is due for completion next year.

Aboitiz Power, through subsidiary Therma Visayas Inc., is also building the 340-MW coal plant in Cebu, which is set for completion next year.

The company also has a stake in the ongoing Pagbilao Energy’s 420-MW coal plant in Quezon, which would likely be completed next year.

Moraza said RP Energy’s 600-MW baseload plant in Zambales was also expected to start construction late this year.

Aboitiz Power plans to build up 200 MW of additional hydro capacity which includes the 45-MW Kabayan, Benguet hydro prospect.

Aboitiz Power, in joint venture with Sun Edison also recently completed a 59-MW solar power plant in San Carlos City, Negros Occidental.

The company is also nearing completion of the 8.8-MW biomass plant in Batangas under Aboitiz Renewables.