Indonesia's largest petrochemical group Barito Pacific plans to issue new shares in the first quarter of next year to raise up to $1 billion to buy a majority stake in Star Energy Group Holdings, a Singapore-based utility company. (JG Photo/Afandi Hikmal)

Star Energy Closes Deal for Chevron's Salak, Darajat Geothermal Plants


APRIL 16, 2017

Jakarta. A consortium led by Star Energy, a utility subsidiary of Indonesia's largest petrochemical group Barito Pacific, has completed $2.3 billion acquisition of two geothermal power plants from global energy giant Chevron.

The transaction is part of a $3 billion takeover of three Chevron's geothermal assets in Indonesia and the Philippines.

Chevron closed the deal for Indonesian assets on March 31, and it will appear in the company's first quarter financial report, Chevron's upstream executive vice president Jay Johnson said in a statement on Saturday (15/04).

For the acquisition, Star Energy teamed up with AC Energy — a unit of Philippine banking and property conglomerate Ayala Group — and Thailand's Electricity Generating Public Company (EGCO). Star Energy has 68.31 percent stake in the consortium, with AC Energy controlling 19.8 percent and EGCO 11.89 percent.

The consortium and Chevron signed a share sale and purchase agreement for the deal on Dec. 22.

The geothermal power plants sold to Star Energy consortium are 370-megawatt power plant in Mount Salak in Bogor, West Java, and 240-megawatt geothermal power plant Darajat in Garut, West Java.

The consortium will also buy from Chevron a 40 percent stake in 326-megawatt Tiwi Makban geothermal plant in the Philippines — the closing is expected to take place by the end of 2017.