Philippines: Ayala’s AC Energy acquires Chevron’s geothermal assets

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Diversified conglomerate Ayala Corp through its power unit AC Energy Holdings Inc has acquired stakes in Chevron’s geothermal assets.

Ayala earlier disclosed that as part of an Indonesian consortium and a Philippine consortium, AC Energy signed a share sale and purchase agreements with Chevron Global Energy Inc, Union Oil Company of California, and their relevant affiliates or collectively Chevron, for the purchase of Chevron’s geothermal operations in Indonesia and the Philippines.

Financial details were not disclosed.

AC Energy president and CEO John Eric Francia described the development as a significant step towards attaining the company’s goal of reaching 2000MW by 2020.

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“This acquisition is a major milestone for AC Energy as this scales up our renewable energy platform and establishes our presence in Indonesia,” Francia said.

The Indonesia consortium consists of AC Energy with 19.8 per cent economic stake, Star Energy Group Holdings Pte Ltd, Star Energy Geothermal Pte Ltd, and Electricity Generating Public Company Ltd, and the acquisition will be made through their joint venture company, Star Energy Geothermal (Salak-Darajat) BV.

However, the Philippine consortium consists of AC Energy and Star Energy Group Holdings Pte Ltd, and the acquisition will be made through their joint venture company the ACEHI-STAR Holdings Inc.

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In Indonesia, Chevron subsidiaries operate the Darajat and Salak geothermal fields in West Java, with a combined
capacity of 235MW equivalent of steam and 402MW of electricity.

In the Philippines, company subsidiaries have a 40 per cent equity interest in the Philippine Geothermal Production Company, Inc., which operates the Tiwi and MakBan geothermal field in Southern Luzon and supplies steam to power plants with a combined name plate capacity of around 700MW.

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Clifford Chance Pte Ltd acted as the lead transaction counsel to the Consortium. Credit Suisse acted as the Sole Financial Advisor and Joint Financier to the Consortium. BPI and DBS acted as lead coordinators for the debt financing.

“The closing of the transaction is made subject to the satisfaction of certain agreed conditions. In particular, for the acquisition of the Philippine asset, the closing is subject to obtaining certain consents and approvals, including the approval of the Philippine Competition Commission,” Ayala said in its statement.

As Ayala group’s development arm in the energy sector, AC Energy is building a portfolio of power generation assets using renewable and conventional technologies.

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