Aboitiz Power Corp. (AboitizPower) is beefing up its portfolio by exploring opportunities to expand its power business abroad, particularly in Indonesia.
In a disclosure to the Philippine Stock Exchange (PSE) on Monday, AboitizPower said it will participate in the exploration and development of a potential 100-megawatt (MW) greenfield geothermal plant in East Java Province, Indonesia.
The venture will be undertaken through AboitizPower International Pte. Ltd., a wholly owned Singapore-based subsidiary of AboitizPower, which entered into an agreement with PT Medco Power Indonesia.
Antonio Moraza, president and COO of Aboitiz Power, said this will be the company’s first international power venture.
The project company, PT Medco Cahaya Geothermal, a subsidiary of PT Medco Power Indonesia, was awarded the concession to develop the project.
Aboitiz Power said the project is currently in the resource validation and exploration stage.
Erramon Aboitiz, Aboitiz Power chief executive officer, said Indonesia has become a leading candidate for its maiden power venture overseas.
Aboitiz earlier said that his company will be spending more time in Indonesia than in other countries.
He said they like what they see at present in Indonesia given the country’s similarities with the Philippines, particularly in terms of demographics, and Indonesia’s need for more power in the future.
Aboitiz however said the group is not limiting itself to Indonesia but is also looking at other Southeast Asian countries like Vietnam and Myanmar.
Aboitiz Equity Ventures (AEV), the company’s power unit, is one of the biggest power players in the country at present. To date, AEV has a total attributable power portfolio of 2,210 MW consisting of hydropower, geothermal, coal and oil-based facilities.
AEV made its maiden international venture in June last year after food unit Pilmico Foods Corp. acquired a 70 percent stake in Vin Hoan 1 Feed JSC, one of the largest aqua feed producers in Vietnam.