Origin Energy Limited (Origin)1 today announced it had entered into a Sale Agreement with KS Orka Renewables Pte Ltd for the sale of its 50 per cent interest in OTP Geothermal Pte Ltd (OTP) for a cash consideration of US$30 million.
OTP, a 50:50 joint venture with Tata Power International Pte Ltd, holds a 95 per cent interest in Indonesia’s PT Sorik Marapi Geothermal Power (SMGP). SMGP is currently progressing the development of the 240 MW Sorik Marapi Geothermal Power Project in North Sumatra.
The divestment of Origin’s interest in OTP is consistent with the company’s strategy to reduce debt and narrow its focus to two core businesses, Energy Markets and Integrated Gas.
The sale is subject to customary conditions including approvals from relevant Indonesian government authorities.
1 Along with its subsidiary Origin Energy Geothermal Singapore Pte Ltd
About Origin Energy
Origin (ASX: ORG) is the leading Australian integrated energy company with market leading positions in energy retailing (approximately 4.2 million customer accounts), power generation (approximately 6,000 MW of capacity owned and contracted) and natural gas production (1,093 PJ of 2P reserves and annual production of 82 PJe).
Through Australia Pacific LNG, its incorporated joint venture with ConocoPhillips and Sinopec, Origin is developing Australia’s biggest CSG to LNG project based on the country’s largest 2P CSG reserves base.