PLN board OKs $60M Sarulla sale

PLN board OKs $60M Sarulla sale

SINGAPORE: Indonesia's national power company Perusahaan Listrik Negara, or PLN, is poised to "within days" sign a US$60 million deal with Unocal Corp. for the take over of the Sarulla geothermal power project in North Sumatra, said PLN Finance director Parno Isworo Wednesday.

The conclusion of the Sarulla deal, originally scheduled for September, was delayed pending approval from PLN shareholders, which came through last week on Oct. 8, said Parno.

By mid-November, after the official transfer of Sarulla's ownership title, PLN will pay Unocal $60 million, he added.

But what PLN intends to do with Sarulla, also the first geothermal project to be launched in North Sumatra, remains unclear, Parno said.

There are three options: PLN could resell Sarulla to a third- party, offer its stake in the geothermal field to a company already engaged in oil, gas or steam exploration and production, and operate the power plant, or form a joint-venture company to advance the Sarulla project.

The current steam production capacity at Sarulla, where Unocal had already drilled wells, can support the construction of a 65 megawatt power generating unit, Parno said. -- Dow Jones