Andalas teams up with Indonesian national energy company

1st Sep 2016 14:32

(ShareCast News) - Andalas Energy and Power announced on Thursday that it has signed an agreemen with PT Pertamina to establish a joint working and steering committee with the objective to fast-track commercialisation of marginal gas fields within Pertamina's acreage in Indonesia.The AIM-traded company said the execution of the agreement represents "substantial progress" by Andalas in the implementation of its gas-to-power strategy.Its board said the agreement is in line with Andalas' plan to utilise its team's expertise and local knowledge to make a significant contribution at the local level towards fulfilling the Government of Indonesia's goal of reducing the country's power shortfall.Indonesia is seeking to increase electricity capacity by 35,000 MW by 2019.The agreement's initial focus is to identify at least five stranded gas fields within Pertamina's acreage in Riau, Jambi and South Sumatra provinces which are suitable for sub-100 MW gas-to-power development in the form of an independent power project.Once the initial five fields have been identified both parties will sign an exclusive joint development agreement to design, construct, fund and operate the IPPs.Both parties will then work together to generate IPP commercialisation plans for each of the identified marginal gas fields covering all key aspects of any future investment and approval; covering project design, project cost and economic analysis and all regulatory requirements."Working in partnership with Pertamina, the Indonesian national energy company, is in our view a testament to the strength of Andalas' gas-to-power business concept and the calibre of both our Board and local management team, who have an intimate understanding of the country's energy sector," said Andalas CEO David Whitby."Andalas already has the team and network to make sure the partnership has at its disposal everything needed to deliver the targeted IPP commercialisation plans."