Aboitiz Group may buy Chevron geothermal assets

by Myrna Velasco – May 17, 2016

from Manila Bulletin

The Aboitiz Group has confirmed that it is eyeing to bid for the geothermal assets being divested by American giant Chevron Corporation for its Asian operations.

Aboitiz Power Chief Executive Officer Erramon I. Aboitiz said “when the time comes and when the process has started, we will be looking. We are waiting for the formal advise.”

He qualified that the conglomerate is “always on the lookout for opportunities in the Philippines and Asia.”oitiz

The multinational energy giant recently made public its plan to divest its geothermal operations in Asia, but firm parameters on bidding and eventual sale have yet to be unveiled.

At some point, the Aboitiz group had some sort of “resentful” relationship with Chevron’s Philippine geothermal unit – primarily when the parties were negotiating for a new geothermal resource sales contract (GRSC) for the Tiwi and Makiling-Banahaw plants.

Chevron is the partner of the Sy Group in Philippine Geothermal Production Company (PGPC), the successor and “Filipinized firm” that took over the operations of the Tiwi-Makban steamfields.

Prior to the entry of the Sy group as a local partner, the steamfields were being operated by Chevron following asset purchase from Philippine Geothermal, Inc., subsidiary of another American firm.

If the Aboitiz firm would turn out successful in its acquisition of the Chevron geothermal assets, it would have more or less integrated operations of the power plant and steamfield facilities in the Philippines.

For other Asian assets, this will strategically widen the Aboitiz group’s business reach and could also cement its long-planned expansion of ventures in the region.

The company previously indicated plans of spending additional $150 million for the rehabilitation of its Tiwi-MakBan generating units; while PGPC will be matching that with increased steam production.