EEC and PLN sign interim agreement<\/p>\n
PERTH, Australia (Dow Jones): Energy Equity Corp., an
\nAustralian power company, said Wednesday it has entered an
\ninterim agreement with the Indonesian government over the sale of
\nelectricity from Energy Equity's 47.5 percent-owned Sengkang gas
\nand power project in South Sulawesi.<\/p>\n
The Australian company had been in dispute with state-owned
\npower company, Perusahaan Listrik Negara, over a U.S. dollar
\nagreement under which PLN is contracted to buy at least 80
\npercent of the project's power output.<\/p>\n
In the wake of the substantial drop in the value of the
\nIndonesian rupiah against the U.S. dollar, PLN's payment
\nrequirements rose sharply. In response, PLN only made partial
\npayments.<\/p>\n
\"A good understanding has been established with PLN for a
\nlonger term agreement that will provide certainty for EEC
\nshareholders and continue EEC's commitment to maintaining a long-
\nterm power supply to PLN and the people of the economically
\ngrowing province of south Sulawesi,\" Energy Equity Managing
\nDirector Maurice Brand said in a statement.<\/p>\n
Under the interim agreement, PLN has agreed to pay a higher
\nportion of its monthly invoices for the purchase of electricity,
\nso that Sengkang's cash flow now covers all its power plant
\noperating costs, gasfield operating costs and total interest
\ncosts of US$14.7 million, Energy Equity said.<\/p>\n
The interim agreement will run until definitive agreements are
\nsigned or April 30, 2000, whichever is earlier, Energy Equity
\nnoted.<\/p>\n
The other owners of the Sengkang project are U.S. power
\ncompany El Paso Energy Corp. with 47.5 percent and Indonesia's PT
\nTrihasra Sarana Jaya Purnama with five percent.<\/p>\n
Shares in Energy Equity Corp. rose 1.5 Australian cents to
\n22.5 cents, in a market that fell 0.8 percent to 2897.8 points
\nWednesday.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/eec-and-pln-sign-interim-agreement-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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