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Page added on December 23, 2016
Chevron Announces Sale of Geothermal Operations
Chevron Corporation (NYSE: CVX) announced that its wholly-owned subsidiaries have entered into a sales and purchase agreement with Star Energy Consortium to sell Chevron’s Indonesian and Philippines Geothermal assets.
“These assets deliver reliable energy to support the needs of Asia-Pacific’s growing economies,” said Jay Johnson, executive vice president, Upstream, Chevron Corporation. “This sale is aligned with our strategy to maximize the value of our global upstream businesses through effective portfolio management.”
In Indonesia, Chevron subsidiaries operate the Darajat and Salak geothermal fields in West Java. In the Philippines, company subsidiaries have a 40 percent equity interest in the Philippine Geothermal Production Company, Inc., which operates the Tiwi and Mak-Ban geothermal power plants in Southern Luzon.
Chevron Corporation is one of the world’s leading integrated energy companies. Through its subsidiaries that conduct business worldwide, the company is involved in virtually every facet of the energy industry. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; manufactures and sells petrochemicals and additives; generates power; and develops and deploys technologies that enhance business value in every aspect of the company’s operations. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.
3 Comments on "Chevron Announces Sale of Geothermal Operations"
rockman on Fri, 23rd Dec 2016 12:10 pm
An even more interesting story when the details are posted:
French utility Engie and Japan’s Marubeni are among several suitors preparing to bid for Chevron Corp’s Asian geothermal energy blocks valued at about $3 billion, sources familiar with the matter said.
Potential buyers including Southeast Asian firms are attracted by the opportunity to gain control of large blocks of geothermal assets located in Indonesia and Philippines.
“There’s a lot of jostling going on to see who’s teaming up with whom. I expect to see companies forming consortiums for this big sale,” said one banker involved in the process. “The Japanese are key as whoever ties up with them would have access to low cost funding and that boosts their chances,” he added.
Like many rivals, Chevron is selling assets, cutting jobs globally and slashing capital spending to save cash in a bid to preserve its dividend amid weak oil prices. “For global players, it provides an entry into the geothermal markets in Indonesia and possibility of further expansion,” said consultancy Wood Mackenzie’s principal power analyst Bikal Pokharel.
Two Chevron subsidiaries operate geothermal projects in Salak and Darajat fields in west Java with a capacity to generate nearly 650 megawatts of electricity. The combined output produces enough renewable energy to supply about 3 million homes, according to Chevron’s website.
HUGE POTENTIAL – Pokharel said Indonesia had estimated a geothermal potential of 27,700 megawatts, the highest in the world, but its current installed capacity was less than 5 percent of the potential.
He said contradictory and untested regulations, land acquisition, building transmission infrastructure and lack of clarity in pricing methodology remained major challenges.
Indonesia has unveiled land and regulatory reforms aimed at boosting production of geothermal energy, but investment in renewables has been slow in Southeast Asia’s largest economy.
Chevron also has a 40 percent interest in Philippine Geothermal Production Company, Inc., which produces steam energy for third party-owned geothermal power plants. They have a combined generating capacity of 692 megawatts.
Kenz300 on Sat, 24th Dec 2016 6:09 am
Wind And Solar Now Cheapest Unsubsidized Electricity Sources In The U.S. – First Solar, Inc. (NASDAQ:FSLR) | Seeking Alpha
http://seekingalpha.com/article/4031497-wind-solar-now-cheapest-unsubsidized-electricity-sources-u-s
World Energy Hits a Turning Point: Solar That’s Cheaper Than Wind – Bloomberg
https://www.bloomberg.com/news/articles/2016-12-15/world-energy-hits-a-turning-point-solar-that-s-cheaper-than-wind
Solar cheaper than natural gas and coal. Climate Change will be the defining issue of our lives.
Cheaper Wins !
Kenz300 on Wed, 28th Dec 2016 9:40 am
The oil companies and the auto companies need to get their collective heads out of the sand and realize that the world is changing with or without them.
Climate Change is real….. it will impact all of us.
It is time to move away from fossil fuels and embrace alternative energy sources like wind, solar, wave energy,
geothermal and second generation biofuels made from algae, cellulose and waste. They need to change their business models and move from being OIL companies to ENERGY companies. The auto industry needs to move from just building compliance vehicles to embracing electric vehicles and start putting development and advertising behind them..