Dec 28, 2016 09:47:07

Barito Pacific ($BRPT) to acquire affiliate firm Star Energy

Indonesian petrochemical firm Barito Pacific has announced plans to acquire “majority shares” in affiliated-entity Star Energy Group Holdings Pte Ltd for an undisclosed amount.

The company said that it has signed a memorandum of understanding (MoU) with Star Energy that will be followed by a conditional sale and purchase agreement.

Both Barito Pacific and Star Energy are controlled by tycoon Prajogo Pangestu. Barito Pacific was established as PT Bumi Raya Pura Mas Kalimantan in 1979. Aside from Chandra Asri, Barito Pacific owns many subsidiaries in different industries, such as PT Royal Indo Mandiri in the crude palm oil industry and PT Griya Idola in the property sector.

Just last week, Star Energy signed a deal to purchase Chevron’s geothermal operations in Indonesia and Philippines. Star Energy Consortium includes Star Energy Group Holdings, Star Energy Geothermal, AC Energy (Affiliates of Ayala Group in Philippines) and EGCO (from Thailand).

For the acquisition of Chevron geothermal operations in Indonesia, Star Energy Group Holdings and Star Energy Geothermal holds majority ownership (68.31% ownership), followed by AC Energy (19.3%) and EGCO (11.89%).

Major Chevron geothermal assets in Indonesia includes, Salak and Darajat geothermal fields which generate 413 MW geothermal and supply 275 MW of steam. Chevron geothermal assets in Philippines includes Tiwi-Makban geothermal field which currently is producing approximately 326 MW of steam.