rns sweet18 Oct 2017 15:28
Siemens are in
Andalas Energy and Power Plc
(�Andalas�, or the �Company�)
Signs MOU for Development of an Independent Power Producer at the Puspa Field with PT Pertamina Power Indonesia and Siemens AG
Andalas Energy and Power plc (AIM:ADL) is pleased to announce that it has signed a memorandum of understanding with PT Pertamina Power Indonesia (�PPI�), a wholly-owned subsidiary of PT Pertamina (Persero) (�Pertamina�), and Siemens AG (�Siemens�) regarding the development of an independent power producer at the Puspa field in Sumatra (�Puspa MOU�).
Highlights:
Andalas, PPI and Siemens agree to jointly pursue the development of an independent power producer at the Puspa field in Sumatra. The Puspa field is operated by PT Pertamina EP (�PEP�).
Establishes the basis to:
engage project partners;
negotiate and agree further project agreements with all stakeholders;
secure gas from the Puspa field;
generate conceptual development plans including an electricity demand analysis, a load flow study, a site identification study, identify and select gas fired power generation technology, and identify and select an engineering, procurement and construction contractor.
The parties have agreed to bear their own costs and to share all agreed third party costs, equally during this phase of the project. The agreement includes binding provisions relating to the joint pursuit of the project, conditions precedent, exclusivity, costs, term and confidentiality and non-binding provisions relating to the objectives and execution of further agreements and joint committees. It is for a term of 24 months and subject to all necessary approvals and finance.
The Company will make a final investment decision (�FID�) after the project has been included in the RUPTL and the Company has completed the work program outlined above, obtained various licences relating to the facility and transmission lines and negotiated the final agreements with other stakeholders including the consortium members, PEP, PLN and lending institutions.
The third party costs to Andalas during the development phase are expected to be modest. The material costs of the project relate to the capital costs of the power plant, which will only be incurred when the project achieves FID.
David Whitby, CEO of Andalas Energy & Power, commented, �The execution of the Puspa MOU establishes our first joint project with PPI and Siemens.
�Pertamina has recently completed an appraisal program on the Puspa field. The proposed IPP would enable Pertamina to commercialise the field. Andalas� preliminary assessment is that it will support a 20 to 50MW wellhead IPP. We will continue to refine this model in discussions with all stakeholders including PPI, Siemens, PEP and PLN.
�We are pleased to welcome Siemens to our consortium. Siemens is a leadi
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