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Qatar’s Nebras Power acquires Engie’s 35.5% stake in Paiton Energy

JAKARTA (rambuenergy.com) – Nebras Power, a Qatarian energy company, has signed a binding agreement to acquire French utility company Engie’s 35.5 percent stake in East Java-based Indonesian power producer PT Paiton Energy, Qatar News Agency (QNA) reported.

Nebras Power, a joint partnership between Qatar Electricity and Water Company, Qatar Petroleum International, and Qatar Holding, signed the deal at the weekend.

The acquisition marked the first major acquisition by Nebras Power in Indonesian power sector. In September last year, Nebras Power signed Head of Agreement (HoA) with the Indonesian utility company PLN to start a feasibility study to construct a power plant as well as a floating, storage and regasification unit (FSRU) in Indonesia.

The project capacity will reach about 500 MW of electricity and will use the natural gas as a fuel for the plant to be established.

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.

“The acquisition of ENGIE’s Paiton stake is a value enhancing and forward-looking initiative for Nebras,” Nebras Power Chairman of Board Fahad Hamad Al-Mohannadi said.

“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,” he 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,” Nerbas Chief Executive Officer Khalid Mohammed Jolo said.

Closing of the transaction is expected within the second half of 2016 subject to customary approvals and regulatory consents.

PT Paiton Energy, a joint venture between French and Japanese companies,  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 percent of Indonesia’s total installed capacity. 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. (*)

 

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