Qatar- Nebras to buy ENGIE's stake in Indonesia's Paiton

DOHA: Qatar’s Nebras Power yesterday announced the signing of a binding agreement to acquire the 35.5 percent stake held by global energy giant ENGIE in Indonesia’s largest independent power producer PT Paiton Energy.

The acquisition of ENGIE’s stake in Paiton provides Nebras with access to the highly attractive Indonesian power market and is in line with Nebras’ stated objective to establish itself as a leading international power company and increasing its imprints in the world’s energy sector via actively growing its portfolio in both conventional and renewable power generation assets across South East Asia Europe and Mena regions.

Paiton is Indonesia’s largest IPP with over 2000MW of operating base. It represents 4 percent of Indonesia’s total installed capacity. Paiton enjoys a long term power purchase agreement with PLN. Together with Paiton Nebras has also acquired a stake in the O&M company that operates Paiton. Closing of the transaction is expected within the second half of 2016 subject to customary approvals and regulatory consents.

Fahad Hamad Al Mohannadi Chairman of the Board of Nebras said: “The acquisition of ENGIE’s Paiton stake is a value enhancing and forward-looking initiative for Nebras. We have been clear about our intention to focus on growth initiatives and building our international presence making targeted acquisitions in South East Asia Europe and Mena region as well as forming major energy services partnerships.”

Khalid Mohammed Jolo CEO of Nebras said: “Nebras looks forward to the opportunities this transaction provides and working closely with the consortium partners which includes among others Mitsui and TEPCO.”

Faisal Alsiddiqi Business Development Director of Nebras said “This opportunity provides Nebras access to a sizable 2 GW state-of-the-art power plant with a long term PPA and a strong operational track record”.

Nebras the Qatari joint stock company was established in 2014 by Qatar Electricity and Water Company (60 percent) Qatar Petroleum International Ltd (20 percent) and Qatar Holding (20 percent).

The paid up capital of Nebras Power is QR3.65bn.

The Peninsula