Doha, February 28 (QNA) - Qatarian energy company Nebras Power has accelerated its Asian market move by signing a binding agreement to acquire French utility company Engie's 35.5% stake in East Java-based Indonesian power producer PT Paiton Energy.
Nebras Power, a joint partnership between Qatar Electricity and Water Company, Qatar Petroleum International, and Qatar Holding, signed the deal here Saturday.
Nebras has mandate to invest in feasible and profitable large-scale power and water projects around the world. The acquisition of Engie's stake in Paiton provides Nebras access to the Indonesian's energy market.
Along with Paiton, Nebras has also acquired a stake in the operations and maintenance company (O&M) that operates Paiton. The O&M company has a strong track record of O&M capabilities, which will bring supplementary capabilities and technology know how to Nebras.
Commenting on the agreement, Nebras Power Chairman of Board Fahad Hamad Al-Mohannadi said, "The acquisition of ENGIE’s Paiton stake is a value enhancing and forward-looking initiative for Nebras.
"We have been clear about our intention to focus on growth initiatives and building our international presence making targeted acquisitions in South East Asia, Europe, and MENA region, as well as forming major energy services partnerships. This transaction will complement our strategy of pursuing growth platforms to provide scale and revenue diversity." Nerbas Chief Executive Officer Khalid Mohammed Jolo said, "Paiton offers a compelling investment opportunity for us to get access to the highly attractive Indonesian power market. Nebras looks forward to the opportunities this transaction provides and working closely with the consortium partners which includes, among others, Mitsui and TEPCO." Nebras Business Development Director Faisal Alsiddiqi said, "This opportunity provides Nebras access to a sizable 2 GW state-of-the-art power plant with a long term PPA and a strong operational track record." Closing of the transaction is expected within the second half of 2016 subject to customary approvals and regulatory consents.
A joint venture between French and Japanese companies, PT Paiton Energy has three coal-fired units (3, 7, and 8) with a total capacity of 2,095 MW operated by PT International Power Mitsui Operation & Maintenance Indonesia (PT IPMOMI).
Paiton represents 4% of Indonesia’s total installed capacity. Including the first super critical IPP in Indonesia, the company has exceptional experience and know how in the region. Output generated from Paiton 3 is supplied to PT Perusahaan Listrik Negara (PLN), under a 30-year Power Purchase Agreement (PPA) while units 7 and 8 are under a 40-year PPAA. (QNA)