Kyushu Elec takes Indonesia geothermal project stake

[Reuters]

TOKYO, Oct 9 (Reuters) - Kyushu Electric Power Co Inc (9508.T: Quote, Profile, Research) said on Tuesday it had acquired a 25 percent stake in a geothermal power project in Indonesia from Indonesian energy explorer PT Medco Energi International Tbk (MEDC.JK: Quote, Profile, Research) for an undisclosed sum.

Last year, Indonesian state electricity firm PT Perusahaan Listrik Negara (PLN) awarded a contract to a consortium of Medco, Ormat Technologies (ORA.N: Quote, Profile, Research) and Itochu Corp. (8001.T: Quote, Profile, Research) to build a 330-megawatt geothermal power plant in Sarulla in North Sumatra. Medco chief executive officer Hilmi Panigoro said in May that it wanted Kyushu to join the project because of its experience in the field.

Panigoro said then that Medco had a 62.25 percent stake in the Sarulla project, Itochu 25 percent and Ormat 12.75 percent. Indonesia, the Asia-Pacific region's only OPEC member, is tapping alternative sources of energy to meet rising power demand and cut consumption of expensive crude oil as its own reserves dwindle.