[Kabar-indonesia] Medco-Led Consortium Wins Largest Single-Contract Geothermal Project [+PLN]

[JoyoNews at aol.com]

5 reports:  

- Indonesia Medco-Led Consortium 
  Wins US$600 Mln Power Project

- Indonesia Medco 1H Net $55.09 Mln 
  Vs $47.75 Mln

- Indonesia's Medco says 3 investors from 
  China, India offer to buy Apexindo stake

- Indonesian Medco, partner to drill three 
  wells in Libyan Block 47

- Indonesia's PLN says 43 investors 
  pre-qualified to bid for 10 power projects

Indonesia Medco-Led Consortium Wins 
US$600 Mln Power Project

by I Made Sentana

JAKARTA, Aug 1 (Dow Jones)--A consortium led by PT Medco Energi 
Internasional  has won a bid issued by Indonesia's state-run utility company 
to build a 340-megawatt geothermal power plant in North Sumatra province, 
in what is the largest single-contract geothermal project to date in the 
geothermal industry worldwide. 

The consortium's other members are U.S.-based Ormat Technologies Inc. 
(ORA) and Japan's Itochu Corp.(8001.TO), Ormat said in a July 31 press 
release posted on its Web site. 

"The total project cost is projected to be about US$600 million," Ormat said, 
without indicating the source of the financing. 

The Sarulla project represents the largest single-contract geothermal project 
to 
date in the geothermal industry worldwide and is a reflection of the large 
scale 
and high productivity of Indonesia's geothermal resources, as well as an 
indicator 
of the potential of Indonesia's geothermal power industry, it said. 

The consortium will build, own and operate the Sarulla power plant and sell 
the electricity to state-run electricity company PT Perusahaan Listrik Negara 
under 
a 30-year contract. 

Ormat didn't disclose the price for the electricity it will sell to PLN, but 
Bisnis Indonesia daily reported Wednesday that it was set at $0.0468 a 
kilowatt-hour. 

The Sarulla plant will be built over the next five years in three phases of 
110 to 
120 MW each, with the first power generating unit scheduled to begin 
operating within 30 months and the last within 48 months from the financial closing. 

The consortium expects annual revenue from the electricity sales to be around 
$110 million, once the third phase of construction is completed, Ormat said. 

Indonesia, located along the so-called the Pacific Ring of Fire of active 
volcanoes, 
is estimated to hold potential exploitable geothermal resources of at least 
20,000 MW, which are widely distributed throughout the archipelago. 

The total installed capacity of geothermal power plants in Indonesia is 
currently around 800 MW. 

The Indonesian government is seeking to increase utilization of geothermal 
energy amid rising global oil prices. 

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Indonesia Medco 1H Net $55.09 Mln Vs $47.75 Mln

   PT Medco Energi Internasional - Jakarta
   1H ended June 30
   Figures in U.S. Dollar ($)

                                     2006             2005
Net Pft                    $55.09 Mln    $47.75 Mln
Net Revenue           372.03 Mln    294.42 Mln
Earnings/Share        0.0177        0.0154

The figures are unaudited and based on Indonesian accounting
standards. The 2005 figures were reclasified and re-presented to
conform with 2006 financial reporting methods. [ 01-08-06 0041GMT ]

JAKARTA, August 1 (Dow Jones)--PT Medco Energi Internasional (MEDC.JK)
said Tuesday its that first-half net profit rose 15% on year because
of higher commodity prices.

Net profit between January and June rose to $55.09 million from $47.75
million a year earlier.

The gas and oil producer, which is controlled by the Panigoro Family,
said its net revenue rose 26% on year to $372.03 million.

The increase in net revenue was, however, offset by operating
expenses, which rose 32% on year to $59.45 million.

The company didn't say why its operating expenses escalated.

As of June 30, its assets were $1.76 billion, compared with $1.40
billion a year earlier.

Its short-term debts totaled $170.06 million, compared with $154.46
million a year earlier.

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Indonesia's Medco says 3 investors from 
China, India offer to buy Apexindo stake

JAKARTA, August 1 (XFN-ASIA) - PT Medco Energi Internasional said two
investors from China and one from India have offered to purchase
Medco's 53 pct stake in PT Apexindo.

"Two investors from China and one from India are interested in Medco's
shares in Apexindo. We are currently evaluating their offer," Medco
investor relations officer Musky Suyono said.

Suyono gave no other details about the potential investors.

Medco finance director Cyril Nurhadi said the stake will be sold by a
tender offer in compliance with capital market regulations.

Nurhadi said no deadline has yet been set for the stake sale.

"The oil and gas industry is in good condition. Apexindo's shares are
also rising. We will assess who will offer better prices for the
stake," Nurhadi said.

----------------------------------------------------------

Platts Commodity News
August 1, 2006

Indonesian Medco, partner to drill three wells in Libyan Block 47

Indonesia's Medco Energi Internasional along with Canadian partner
Venerex plans to drill three exploration wells in Libya's onshore
Block 47 in September, a senior official said Tuesday.

"We've completed a seismic survey in Libya and plan to drill three
wells in September this year," Medco's director Rashid I. Mangunkusumo
said.

Medco and Venerex will spend around $70 million for the completion of
three wells, Rashid said adding that production from Block 47 could be
on stream by 2008. "The recoverable oil from the discovery could reach
up to 60 million barrels," he said.

Medco is looking to expand its business in overseas operation
opportunities in North Africa and in the US, Rashid said.

Meanwhile, Medco reported net income of $55.1 million for the first
six months of 2006, up 15.4% from $47.4 million for same period in
2005. The increase in net income was attributed to high oil and gas
prices

The company also boosted crude oil output by 7.3% to 58,660 b/d for
the first six months, up from 54,690 b/d for the same period last
year.

-----------------------------------------------------

Indonesia's PLN says 43 investors 
pre-qualified to bid for 10 power projects

JAKARTA, August 1 (XFN-ASIA) - State electricity firm PT Perusahaan
Listrik Negara (PLN) said 43 out of 59 potential investors have
pre-qualified to bid to undertake 10 coal-fired power plant projects.

Seven of the plants envisioned will have a capacity of 300-400 MW each
and three a capacity of 600-700 MW. They are part of the government's
accelerated program to build new power capacity of 10,000 MW.

PLN acting president Djuanda Ibrahim said the winning bidders are
expected to be announced on Oct 20.

He reiterated that investors should cover 80 pct of the cost of the
projects. PLN will cover the balance.

The bidders are mostly consortiums of foreign and Indonesian firms,
with many Chinese companies on the list of foreign participants,
including China National Machinery Industry Corp, China National
Electrical Equipment Corp, Chengdu Engineering Corp, China National
Technical Import & Export Corp, China National Machinery Import &
Export Corp, CITIC and Harbin Power Equipment Co Ltd.

Other foreign participants are Hyundai Engineering and Construction Co
and Doosan Heavy Industry of South Korea and Mitsubishi Corp, Itochu
Corp and Marubeni Corp of Japan.

The Indonesian firms taking part include PT Mitra Selaras Hutama
Energi, PT Bumi Rama Nusantara, PT Bumi Karsa PT Penta Adi Samudera;
PT Wijaya Karya; PT Hutama Karya, PT Waskita Karya, PT PAL Indonesia,
PT Barata Indonesia, PT Primanaya Djan International and PT Modaco
Enersys.

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Joyo Indonesia News Service
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