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Medco raises stakes in Medco Power to 88.62% after buying Saratoga shares

PLTP Sarulla (Image credit : ESDM Ministry)

JAKARTA ( – PT Medco Energi Internasional Tbk said it has raises its stakes in PT Medco Power Indonesia to 88.62% from 49% previously, making the company to hold controlling stake in Medco Power, the operator and developer of Indonesia’s largest geothermal project PT Sarulla Geothermal.

The company announced that it has agreed to acquire a 77.68% interest in PT Saratoga Power from PT Saratoga Sentra Business and S. Asia III Luxembourg S.A.R. for US$129.21 million.

The remaining stakes of Medco Power Indonesia of 11.38% is held by the International Finance Corporation (IFC).

MPI was established in 2004, a leading mid-sized Independent Power Producer (IPP) in Indonesia with its primary focus on power from natural gas and geothermal sources.

MPI currently operates over 520 MW of gross installed capacity following the commercial operation of the Cibalapulang 1 mini-hydro facility in September 2017, and the expected commercial operation of the Sarulla Unit 2 geothermal plant in October 2017, one month ahead of schedule.

MPI gross operated capacity will further increase when Sarulla Unit 3 (110 MW) reaches commercial operation in Q2 2018, and Riau CCPP (275MW) in 2021.

MPI Operation & Maintenance (O&M) business has also expanded and now operates over 2,000 MW of third-party power plants. This expansion is driven by two new O&M contracts signed in late 2016 where MPI now operates the Sarulla Geothermal units and PLN gas-turbine units in eight locations across Indonesia.

Hilmi Panigoro, the President Director of MedcoEnergi, said that “this acquisition allows the Company to regain majority control of MPI and to strengthen our position in the power generation sector, which is expected to continue growing at 9% per annum over the next ten years.”

“Our increased control over MPI is consistent with the Company’s strategy to grow in three main sectors; oil and gas, mining and power, and unlocks greater potential for synergies with our upstream gas business,” Hilmi said. (*)

Edited by Roffie Kurniawan (roffie.kurniawan@gmail.coM)

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